Molson Coors Brewing Company Risk Analysis

In looking at the suit filed by Anheuser, we can closer examine how Anheuser- Busch was damaged through the actions taken by Mr. Thayer. Anytime that an insider trading scandal takes place, there is always damages and repercussions. The most identifiable damage is that of money and capital. Anheuser-Busch paid nearly $40 million more for the acquisition of Campbell Taggart due to the active trading of Mr. Thayer, and the rest of the insiders. It is easily identifiable, that one damage to Anheuser-Busch was a $40 million dollar excess payment to acquire Campbell Taggart. By exploring and understanding capital markets, we find other monetary damages to Anheuser-Busch. These damages come from the cost of ongoing lawsuits with the SEC as well as with the defendants, Paul Thayer, and the other insiders. Another monetary damage from the effects of the insider trading is the allocation of management resources during the legal battles and

Major competitors in light beer are Anheuser Busch, Miller Brewing, and Adolf Coors, representing 74% of beer shipments in Mountain Man’s region.

Brand plays a key role in the beer-purchasing process, along with taste, price, special occasion,

Boston Beer Company (BBC) has enjoyed much success with their craft beers with Samuel Adams as their main focus. Being the leader of this segment, overtopping five of their competitors combined (Exhibit 1), the company now must decide how to take advantage of the light beer market. Boston Lightship, their current light beer, had been a small contributor in BBC’s product line. Currently, it is facing dwindling sales with product volumes down from 12 000 cases per month to 3000 cases per month.

Even though their shipping costs were twice the industry’s, average shipping costs would have been much more had they attempted to enter other states. Besides, Coors made up for the inefficiency with the scale of their plant, the largest in the nation. The location lent itself well to Coors’ ability to differentiate its product. For example Coors was brewed using “pure Rocky Mountain spring water.” Coors had a great opportunity to serve an underserved geographical market. Seven of 24 million barrels sold in the region had to be imported from production facilities outside of the region, and Coors’ Colorado facility was more central to the area than the three other closest facilities in Missouri, Texas, and Wisconsin. Coors had the second lowest production cost per barrel in the industry, in spite of their claim of the most expensive raw material costs. Their cost advantage stemmed from the industry’s highest capacity utilization, economies of scale through the country’s largest brewery, single product focus, and the industry’s fastest packaging lines. Matching their low production cost was the lowest advertising cost relative to the industry. The mystique that had been built up about Coors and their differentiating, all-natural appeal allowed them to get away with lower advertising costs than average for the industry. Coors differentiated their product, both in the

One of the weaknesses to distributing Coors beer in the two counties is the competition of other domestic and microbrew beers. Although the consumer and retailer willingness to buy Coors beer is high, will they actually purchase Coors beer when it becomes available to them? The questionnaires have strong feedback for Coors beer in the Delaware counties but people may become biased by their customer loyalty to other beer brand. There is a big enough marker share for Coors to be implemented, but will Brownlow be able to succeed in this competitive industry.

Mr. Larry Brownlow needs to decide whether or not to apply for the Coors distributorship in southern Delaware.

Molson Coors Brewing Company is one of the leading manufacturers in the Brewing Industry. They have been in business for over 350 years

It would also give them time to define the actual demand for their product, which has not been fully established yet. This way they could develop a plan to increase labor and either/or move into a bigger production facility to increase manufacturing capabilities. Black Fly has not long had their “general listing status”, and would likely not be given leniency for failing to meet the- stringent benchmarks LCBO. By creating a new flavor that consumers dislike it could potentially hurt Black Fly’s brand image and influence possible customers to purchase their competitors’ similar products. One negative aspect of not developing a new product would be that they fail to capitalize on the opportunity of increasing market share during a time of extreme growth and high consumer interest.

In 1925, the Mountain Man Brewing Company created a new taste of beer. The company specializes in producing Mountain Man Lager that is a family owned recipe that has a unique bitter award-winning taste. Mountain Man Brewing Company holds a strong brand name in the premium beer segment of the beer industry. MMBC Lager Beer has won several awards and has high brand recognition in the region that it operates. Since 1960, MMBC has distributed lager beer primarily in the Midwest distributing products in Illinois, Indiana, Michigan, Ohio, and West Virginia. MMBC Lager is a strong hoppy beer that is preferred by customers in the working class that are between 55 and 60 years. Over 70% of MMBC sales are generated out of liquor stores. Mountain Man Brewing Company Lager is MMBC only product. In 2005, MMBC Lager sold 520,000 barrels and generated $50 million in revenue. By identifying the facts of the Mountain Man Brewing Company’s case and the problems and why they exists it will be possible to determine solutions for MMBC 's situation to define the direction the company will need to take to ensure future success.

As a business strategy, Molson Coors have achieved their goal to be an international brewing company.

Coors began to make a strong surge to compete with the other brands of beer during much of the mid 1900s. Their brewery was staying extremely busy and producing large amounts of beer. Coors also did things a little different compared to other breweries. All of their costs seemed to be at a minimal level and sales were continuing to climb. The company appeared to be going in the right direction. Coors was only operating one brewery and appeared to be doing great in the industry. The brewery was operating effectively and efficiently. The performance of the company was continuing to do well up until about 1977 (Adolf Coors in the Brewing Industry). Times began to change and performance was lacking. The

Launching a new flavour of an existing product has been the most common expansion initiative taken by companies in the food and beverage industry. It is a conservative approach as it usually does no require a significant

Beer Company 1 is a “national brewer of mass-market consumer beers sold under a variety of brand names” (pg. 120). As one might expect, this national company has “an extensive network of breweries and distribution systems and owns some beer-related businesses” (pg. 120). It also owns several major theme parks.

- to know whether the decision of Larry to become a distributor of Coors Inc. is right