Team 3 Mason Mitchell Randy Greinert Sarah Yelverton Alec Cooper

The Beginning  3, 000 B.C. -mainly starches and sugars  Modern day Iraq  2 Flavors  Malt dried over open flame  Hydrometer Invention  Better quality malt  Colonists/Corn

Coors  1880  Adolf Coors  Golden, Co  Prohibition  “Silver Bullet”-Bill Coors

Coors and the rest

Product Life Cycle  Intro- uncertainty  Growth- intense competition and climb  Mature- stagnant  Decline  Blue Moon, Bud Light Lime- growth stage (helped super premium segment advance 27.3%)

Imports on the Decline  Corona Extra and Heineken biggest imports  Corona Extra down 4.6%  Heineken down 5.5%  Both account for over half of imports in United States  Our spin: Bud Light Lime has stolen customers due to growth stage

Modelo  Mexican beers dominate import category (4 of top 6)  S&P relates this growth to rise in Mexican population, especially in CA.  Will continue to grow

MicroBrew  Also Called Craft Beer  Make limited amount of beer out of small breweries  MicroBrew category has grown consecutively for 25 years  Grew 5% in 2008  Limited edition seasonal beers and differentiation attribute to their success  Samuel Adams of Boston Beer Company is category leader

Market Dominaton  Rule of three and four: 78% of US beer market owned by MillerCoors and Anheuser-Busch

US sales 2008  Anheuser-Busch- 48.6% market share  MillerCoors owned 29.4% of the volume

Top 20 Beer Brands US  1) Bud Light  2) Budweiser  3) Coors Light  4) Miller Light  5) Natural Light  Only recognizable beer that was non big two was Pabst Blue Ribbon at 18

Light Beer  51.8% share of beer consumption  Increase of 2.2% in 2008  Bud Light is now the leading brand in the world

S&P on MillerCoors  Sold 64.5 million barrels of beer in 2008  Up 0.4% from 2007  Sold 64.3 million barrels in 2007  Up 4.8% from 2006  Own and operate 8 US breweries

Consolidating Global Beer Market  US beer companies are trying to establish presence in potentially lucrative markets in Asia, Eastern Europe, and Latin America.  Doing this through exports, joint ventures with local brewers and distributors, and purchases of equity interests in local brewers.  In 2005, world’s top ten brewers accounted for 61% of international sales volume.

Molson Coors global  Acquired Carling from Bass Brewers, which made them a player in the United Kingdom.  Also export products to Australia, Japan, and Caribbean Islands

Increasing Target Market  Age range increased in population for the first time in two decades

Advertising  $975 million dollars spent in 2007  Molson Coors spent $151 million dollars  SAB-Miller spent $175 million dollars  Anheuser-Busch spent $378 million dollars  Mainly target men with commercials on television during sporting events

Competition  Not only from other beers, but wine and spirits  With spirits you can create a variety of flavors with mixers  Expanded spirit marketing  Health-Conscious people shifting to wine and spirits in moderation  People are more time efficient than ever

Overview of the Company: 2005 Molson and Coors merged to form Molson Coors Fifth largest brewer in the world Molson Coors has the 2 nd highest sales within the industry behind Anheuser-Busch

Performance Indicators:  Following the merger in 2005 Net Income and operating revenues for Molson Coors increased until 2007  From 2007 to 2008 the company experienced a decrease in net income and operating revenues as a result of a change in economic conditions and the joint venture with Modelo which was not consolidated yet on the financial statements Net IncomeOperating Revenues

 The companies current ratio has increased from.08 to 1.1 which shows the firm is becoming more liquid  The return on assets ratio has increased in recent years showing Molson Coors increase in efficiency in generating income from invested capital  Molson Coors earnings per share have varied over recent years due to the 2005 merger and the current recession

SWOT  Strengths: - Strong industry position - Portfolio of strong brands - Strong financial performance  Weaknesses: - Dependence on few products - Reliance on third party service providers

 Opportunities: -Strategic Agreements - Growing Hispanic population in the US - Growing beer consumption in Asia  Threats: - Government regulations - Changing consumer preferences - Industry consolidation

Strategy  Performance improvement strategy to build and strengthen capabilities  Reduce general and administrative expenses by business process outsourcing  Standardize business processes in finance, IT services, and HR  Strong brand recognition to obtain a competitive position  Increase in advertising and marketing expenditures

Industry change Rise of wine, spirits, and craft beer 34% wine 40%beer 22% spirits In 1995 beer was 46% now 40% People are becoming more health conscious Increase in Mergers and acquisitions

Strong and Weak Companies  Anheuser-Bush  Molson Coors  Pats Blue Ribbon Decreasing market share % % Beer ranked 18 out of 20 top beers

Competitive Moves  Mergers and Acquisitions Pats Blue Ribbon Boston Beer Company  Add craft brewers to product mix 312 ESB

Completive success  Advertising  Product differentiation  Synergy and cost reduction

Industry attractiveness  $99.3 billion industry  Industry growing during recession  Over 21 population is growing