strategic-management

The market for the target customer is increasingly competitive, especially on product
differentiation by price. Another important product differentiation is the import and
premium categories. Growth is anticipated in these categories. Coors has posted a decline
in market share compared to other brewers, including the market leader Anheuser-Busch,
which has posted steady growth. Micro and regional brewers are picking up momentum, as
are imports, whereas Coors and Molson (separate but combined volume) have leveled off
right above 10 percent of market share. The joint venture with SABMiller has now placed
Molson Coors in second to Anheuser-Busch in the United States. Anheuser-Busch has
48.2 percent of the domestic market share (Beer Industry Overview, 2008).
Molson and Coors each have a strong presence in Canada with the National Hockey
League. Molson Coors is the second-largest brewer in Canada with 41 percent market
share. As of December 2008, Molson Coors advertising and promotions include marketing
at sports arenas, stadiums, and other venues and events, totaling approximately $281
million over the next five years and afterward.
C2, one of the most recent new products marketed under the Coors name, is a loweralcohol
version of Carling, the United Kingdom’s biggest selling lager, owned by Coors.
The brew is only 2 percent alcohol by volume, thereby offering a good alternative for those
drinkers who want to enjoy the taste and experience of beer but do not want the alcohol
buzz. It is also for those who want to drink moderately but do not want to turn to soft
drinks. Coors says the new lager “is naturally brewed and is different than a low-alcohol or
non-alcoholic beer, which has its alcohol removed after brewing” (www.realbeer.com,
December 2004). Carling lager represented more than 78 percent of its European segment’s
sales volume in fiscal 2007 (Drinks MarketWatch, 2009).
Coors is continuing its low carbohydrate and low-calorie craze. With the SABMiller
joint venture, Coors now brews or distributes Miller Lite, MGD 64 (only 64 calories),
Milwaukee’s Best Light, Amstel Light, and other health-conscious beer to its portfolio of
beers (Molson Coors Brewing Co., 2009). Competition is extensive for low-carb brews to
appeal to the Atkins diet crowd.
Coors has also indicated plans of targeting female drinkers as UK beer sales
continue to decline. Currently, women account for 14 percent of beer sales in the United
Kingdom and 25 percent in North America. Brewers have introduced a variety of fruity
flavors and low-calorie options to appeal to women (Drinks MarketWatch, 2009).
Molson Coors has also introduced new packaging with some of its products, including
a Coors Light quick-cool 8-ounce can. It has also introduced an 18-pack plastic bottle
cooler box. These are great summer items targeted at anyone who wants to take their beer
on the go—camping, to the beach, to a barbecue, and so on. The quick-cool idea is new to
the U.S. market but has been tested extensively with product market research, and Molson
Coors anticipates it will have great success. In addition, David Wiggins and his team were
able to produce a bottle called Containerlite that reduced overall packaging weight by
4,500 tons or a full 13 percent of annual shipped product weight since its debut in the
summer of 2006 (www.molsoncoors.com, 2009).
Responsibility in Advertising
“21 means 21.” Pete Coors has been quoted as saying, “If you’re under the legal drinking
age, we’ll wait for your business at Coors.” Coors has established its own guidelines to
promote responsible decisions about drinking. In fact, Coors was the first brewer to
incorporate alcohol awareness messages into national product advertising. Coors places
advertising only where the clear majority of the audience is 21 years old or over. Coors
regularly monitors all advertising placements for compliance with industry and company
standards, and it publicly discloses independent audits of television placements. To
ensure compliance, television commercials are targeted to programs that had at least 60
percent of viewers age 21 or over in the prior reporting period. Strict internal reviews are
also conducted on all advertising and marketing materials to avoid any advertising that
may be misconstrued as targeted to those under 21 years old.
Coors has also developed, with the help of Bill Young, an initiative called
MVParents. The initiative was created to promote responsible alcohol consumption and
CASE 23 • MOLSON COORS — 2009 227