Canadian Beer Wars – Brewers Drunk on Market Share Strategic Game Theory

Introduction Canadian Beer market controlled by 2 large companies, Labatt & Molson and their 2 flag brands, Blue & Canadian Canadian Beer market controlled by 2 large companies, Labatt & Molson and their 2 flag brands, Blue & Canadian Brewers together controlled 95% of the market. Brewers together controlled 95% of the market. Market peaked in early 80s, then people started switching to other products. Market peaked in early 80s, then people started switching to other products. Could not win business from each other, and so started differentiating. Could not win business from each other, and so started differentiating.

Introduction of New Player In 1992, Sleeman Breweries entered the market. In 1992, Sleeman Breweries entered the market. Canadian premium brewer. Canadian premium brewer. Slowly started to take market share from Labatt and Molson. Slowly started to take market share from Labatt and Molson. Large Brewers were still too focused on each other. Large Brewers were still too focused on each other. By 2000, Sleeman had almost 10% of the market. By 2000, Sleeman had almost 10% of the market.

Change of the Playing Field Labatt bought out by InterBrew Labatt bought out by InterBrew Molson merges with Coors Molson merges with Coors Deregulation of Beer market in parts of Canada. Deregulation of Beer market in parts of Canada. Companies begin to engage in a price war. Companies begin to engage in a price war. Price of beer has fallen in Canada, great for consumers, but bad for the companies. Price of beer has fallen in Canada, great for consumers, but bad for the companies.

Any Questions? Sean Coristine