strategic-management

cost about $14 a case, or $5 less than a case of Bud Light or Coors Light. Whereas drinkers
a few years ago were “trading up” to imports and small-batch “craft” beers, the trend now
is towards economy beers. For thousands of consumers today, drinking less beer is not the
best option, so finding the cheapest way to drink is preferred. For example, at 7-Eleven’s
6,000 USA stores, sales of economy beers are up 9 percent in 2009.
Competitor Anheuser-Busch InBev NV announced in mid-2009 that they desire to
own all their distributors, rather than have 600 un-owned distributors. Currently Anheuser
distributes only 7 percent of its products but would like to see that number increase to 50
percent soon.
For the 13 weeks ending July 12, 2009, the top beer selling brands in the United
States were Bud Light ($1.3 billion), Budweiser ($570 million), Coors Light ($491
million), Miller Lite ($453 million), Natural Light ($286 million), Corona Extra ($285
million), Busch Light ($178 million), Busch ($163 million), Heineken ($156 million), and
Miller High Life ($126 million). Clearly Molson Coors needs a clear strategic plan to
compete with its rival breweries, especially gigantic Anheuser-Busch.
References
Adolph Coors, 2004 Annual Statements.
“After Prices Rise, Profit Narrows at Molson Coors.” New York Times (2009). Available at:
www.lexisnexis.com.
Arndofer, James. “The Death of Beer.” Advertising Age 76 (2005):18.
Beer Industry Overview: 1st Quarter 2008. Available at:
http://www.supermarketbusiness.com/progressivegrocer/profitguides/beer/images/pdf/
IndustryOverview.pdf.
“Beer Sales.” Retrieved May 19, 2009, from www.bevindustry.com.
“Beer Statistics.” Retrieved May 19, 2009, from www.beerinstitute.org.
“Big Shoes, Little Feet.” Retrieved April 28, 2009, from www.molsoncoors.com.
Chura, Hillary. “Boom Drinkers Complicate Drinks.” Advertising Age 73 (2002): 25.
Chong, Pooi Koon. “Alcohol Business Feels the Pinch Too.” 2009. Available at:
www.lexisnexis.com.
“Containerlite: Less is More.” Retrieved April 28, 2009, from www.molsoncoors.com.
“Coors to Close Memphis Brewery.” Retrieved February 14, 2005, from
www.realbeer.com.
Drinks MarketWatch. “Company Spotlight: Molson Coors.” (2009). Datamonitor.
Drinks MarketWatch. “Industry Update.” (2009). Datamonitor.
Hoover’s Company Records. “Molson Coors Brewing Company.” Retrieved February 17,
2009, from www.hoovers.com.
Hoover’s Company Records. “Anheuser-Busch InBev.” Retrieved February 17, 2009,
from www.hoovers.com.
Hoover’s Company Records. “The Boston Beer Company.” Retrieved February 17, 2009,
from www.hoovers.com.
Hoover’s Industry Overview. “Breweries.” Retrieved April 28, 2009, from
www.hoovers.com.
“Molson and Coors Complete Merger to Form Molson Coors Brewing Company.” Press
Release, February 9, 2005. Retrieved June 5, 2005, from www.molsoncoors.com.
“Molson Information” (n.d.) Retrieved June 5, 2005, from www.molsoncoors.com.
Molson Coors, Annual Report (2009).
“Molson Coors Brewing Company Announces Management Changes.” Canada:
PRNewswire (March 18, 2005).
Theodore, Sarah. “2009 Beer Report: Beer defies the odds.” 2009. Available at:
http://www.bevindustry.com/CDA/Articles/Cover_Story/BNP_GUID_9-5-
2006_A_10000000000000572434.
The Boston Beer Company, Annual Report (2009).
CASE 23 • MOLSON COORS — 2009 231