Post on 18-Jan-2016
MillerCoorsMiller, Coors join forces to battle
BudweiserPresented by :
Chris ZalesAlex Jones
Adrian Smith
Background
• Miller Brewing Co. owned by SABMiller has 18% of the market
• Molson Coors Brewing Co. has around 11% of the market
• Anheuser-Busch has just under 50% of the market
• Making MillerCoors and Anheuser-Busch about 80% of the beer market
Benefits
• Tag-team approach– Control multiple pricing categories
• Better position to compete against Anheuser-Busch
• Save $500 million in annual costs• Molson Coors and SABMiller shares rose
around 12% combined while Anheuser-Busch declined 1% after the announcement
Risks
• $450 million in the first year to change business and logistics strategies
• Breweries closing – Employees losing jobs
• Competing with each other– Example: Miller Lite vs. Coors Light
Mixed Efforts Aren’t Enough
Anheuser-Busch: $417 Million
Miller +Coors Combined: $330 Million
Interesting Facts
• A Google search found varying amounts of results per light beer:- Miller Lite: 620,000- Bud Light: 488,000 (Anheuser-Busch)- Coors Light: 227,000
• MillerCoors is projected to sell 69.9M barrels in the U.S. with a revenue of $6.6B
• Last year alone Anheuser sold 102.3M barrels with revenues of $15.7B!!!
Is It Worth It?
• According to beer historian Maureen Ogle, author of “Ambitious Brew”
• 1958 : Pabst and Blatz• 1982: Stroh’s and Schilitz• Both ended up leaving the big brand names
worse off
Bibliography
• http://google.com
• http://www.msnbc.msn.com/id/21204207/
• http://adage.com/dailynews/article?article_id=121135
• http://www.youtube.com/watch?v=EJJL5dxgVaM