This section describes the organizational history and the current state of affairs of MillerCoors LLC. It will start by describing the beginnings of the two companies that merged to create MillerCoors. This section will also discuss the culture, important leaders of the company, product offerings and target markets.
MillerCoors LLC, with headquarters located in Chicago, Illinois, is in the brewery industry and employs roughly 4500 people between the headquarters and nine breweries across the country, two of which also hold division offices. MillerCoors is a joint venture between SABMiller and Molson Coors that merged in 2008 to “boost market share and spur stagnant sales and improve profits by combining production, distribution, and marketing operations” (Hoover’s, 2011). Even though MillerCoors is a fairly new business, the company’s roots go back as far as 1855.
Frederick John Miller, founder of Miller Brewing Company, and Adolph Coors, founder of Coors Brewing Company, were both born in Germany and each eventually made it to America. Miller immigrated to the United States in 1854 and in 1855 moved to Milwaukee where he purchased the Plank Road Brewery to brew beer from the brewer’s yeast he brought with him from Germany. In the 1880’s Miller began bottling his own beer and was one of the first breweries to pasteurize its beer. (MillerCoors LLC, 2011)
Frederick Miller died in 1988, however, his family continued with the family business. Just four years later, Miller stopped fermenting and maturing its beer in caves and started using mechanical refrigeration. In the early 1900’s, Miller started mechanically filling, labeling and capping its own bottled beer, allowing customers to see the brand name on the label of every bottl...
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...h each other, thus providing room to grow at the expense of our common competitor, Bud Light” (Mullman, 2008). The CMO is referring to the fact that both beers tend to have different market and are generally preferred in different geographical areas of the country, which will allow both brands to compete individually with their other competitors, mainly Bud Light.
References
CNNMoney.com (2011). Fortune 500 2010 world most admired companies. Retrieved from http:// http://money.cnn.com/magazines/fortune/mostadmired/2010/
Hoover's. (2011, February 08). MillerCoors LLC. Hoover's Company Records – Quick Report. Retrieved from LexisNexis Academic database.
MillerCoors LLC (2011). Who we are. Retrieved from http:// http://www.millercoors.com
Mullman, J. (2008). An ultimate light beer challenge for MillerCoors. Advertising Age, 79 (31), 8. Retrieved from EBSCOhost.
The two organizations explained in this assignment are “Anheuser Busch” and “MOLSON Coors”. Anheuser Busch is a multinational company brewing more than 100 brands in the United States and holds a 45.8 percent of the beer market share1. The company is recognized as the No. 1 brewing company by Fortune magazine – “World’s Most Admired Company”2. Dreaming Big, Unity and Culture are the three main driving values and guiding principles which account for the success the company has achieved during the years1. All these combined with the dedication and motivation
Forked River should learn advanced brewing technologies from Molson Coors to increase production volumes, improve product quality and reduce manufacturing
Intrigued by the opportunity of owning his business, Larry Brownlow must decide whether a distributorship opportunity with Coors is a worthy venture. To aid Larry with his decision, the following pages provide an assessment of this business opportunity. With a limited research budget of $9,500 (p.143), careful selection of reports was essential to obtain both the necessary data to project profitability (e.g., revenues, cost of sales, other expenses, Coors projected market share, retail pricing data) and to provide a qualitative, consumer-focused perspective that would give these quantitative projections a solid foundation. Considering the given financial background, if Larry does not go forward with this investment, we assume he will choose to continue earning annual income from his trust at $40,000 per year (p.143). However, if he goes forward with the investment, he will cash in entire trust and take a significant financial risk. Therefore, we can reasonably assume that Larry will go forward with this investment as long as he can recover his initial investment and earn a salary that exceeds his current annual income. After calculating the possible financial income and analyzing sensitive variables, we suggest Larry takes this opportunity.
Deutsche Brauerei has been a family owned and operated corporation for 12 generations, which has created a high level of focus and control. Each generation has kept the management and operations processes relatively simple, centered on brewing practices and quality. Deutsche Brauerei’s rapid growth in recent years can be attributed to several factors. First and foremost, the company’s success is centered on the product itself, which has won numerous quality awards and is quite popular in Germany. Another contributing factor to the recent growth may have been a bit inadvertent. The purchase of new equipment in 1994, which was necessary as a result of a fire that destroyed the old equipment, allowed the company to increase brewing capacity and efficiency. Finally, Deutsche Brauerei’s decision to enter the Ukranian market in 1998 contributed significantly to the rapid growth. The collapse of the U.S.S.R. brought market reforms, and Deutsche Brauerei jumped on the opportunity to enter the fragmented beer industry, capture the large population and capitalize on the prime location in Europe. Lukas Schweitzer was savvy enough to hire local expert Oleg Pinchuk away from a competitor as the marketing manager, and Oleg was instrumental in building the business in Ukraine by securing accounts and implementing the field warehousing to support distributors. Deutsche’s beer was hugely popular in the Ukraine almost immediately, and volume sales more than offset the depreciation of the Ukrainian currency. Sales in Ukraine accounted for 28% of Deutsche’s total sales, and skyrocketed from 4,262 euros in 1998 to 25,847 euros in 2001.
As you are aware, Mountain Man Brewing Company (MMBC) is a craft brewing and local distribution company located in West Virginia. Its signature product, Mountain Man lager, features a distinctive bitter taste. It is a product that has garnered for the company regional acclaim, a loyal customer base, and numerous awards. This company developed a brand image and reputation among the blue collared and middle age men, while maintaining the unique and authentic family business model based on quality and toughness. In 2005 Mountain Man was generating revenues of 50 million dollars, selling 520,000 barrels. That said, changes in the market have affected MMBC capital. MMBC is experiencing a decline in revenue and market share. It is essential to analyzes and examine the possible strategy of introducing a “light” beer into MMBC’s product line in order to recapture market share.
Abelli, H. (2007). Mountain Man Brewing Company: Bringing the brand to light. (2069) Boston, MA: Harvard Business School Publishing.
Adolphus Busch was a salesman, and perhaps the greatest ever heard of in America. Granted that he knew good beer and ever sought after it, the fact remains that he did not know how to make it at all. In the same course of time he found men who did, but that was a mere detail. He sold the bad almost as efficiently as he sold the good. He could have sold anything. At one point in the early career of Anheuser Busch, its product was so inferior that St. Louis rowdies were known to project mouthfuls of it back over the bar. Adolphus kept on selling it, and it became better, and eventually the best in America.
Research into the target audience of Sun King Brewing Company showed that the owners have stated on record that they have no particular target audience. Rather than focus on a singular group of people to advertise to, the owners wanted to market to a broad audience. Most of this line of reasoning is that they would like to introduce their product to people who are fans of local, fresh products (Lynch, n.d.). To reach a deeper understanding of the marketing techniques of Sun King Brewing and to make more informed recommendations, we can examine the demographics of craft brewery audiences.
Relationships with interest groups and the public policy makers has been one of the many things that the Boston Beer Company has strived to maintain and expand. The company realizes that these relationships are critical for the future success of the company. Being in the brewing industry the policies and publics opinion can influence the changes in future policies and procedures that would affect the industry. Developing and maintaining the relationships with the interest groups as well as the policy makers could prove to be very beneficial to not only the company but the brewing industry as a whole.
Craft beer sales saw significant growth between the years of 2009-2012 and they are expected to continue the upward trend. Interestingly, the economic downturn did not seem to affect the craft beer market despite the higher price of craft beer over mass-marketed domestic beer. In fact, craft beer is experiencing growth in sales that other beer categories are not. (Clarke, 2012; Pierre, 2013) This growth has been attributed primarily to millennials. Millennials (born between 1981- 1995) have been described as conscious of affordability and quality in their product choices but also seek to express themselves through their choices. (Rigik, 2012) According to the Brewer’s Association, 46% of new craft beer drinkers are millenials (Clarke, 2012).
In 1930, Coors resumed the operations and continued distributing the company’s beverage that led to its growth to ten other states in the Western US. After faced great losses in 1940,in order to attain a larger consumer base, Coorsmodified the company's marketing strategies and repackaged its bottle (Coors Brewing Company, 2010).Coors Brewery
Mountain Man Brewing Company was founded in 1925 by Guntar Prangel who was a coal miner with a home brewery. Consequently, his single product brand “Mountain Man” is marketed largely to other coal miners. Today, the company is still seen as an attractive brand that produces a quality product. Mountain Man Lager emphasizes the use of quality ingredients as well as a bitter flavor and dark coloring. Mountain Man has been an established brand for over 75 years and has the loyalty of older blue-collar clientele. Their lager is the market leader in West Virginia, but Mountain Man also has a strong following in other states such as Illinois, Indiana, Michigan and Ohio. It has generated over $50 million in revenue with 520,000 barrels sold. Not to mention, Mountain Man Lager has been voted as the best known regional beer and has also won “best beer” awards in West Virginia and Indiana. The main advantage that Mountain Man Beer Company has is the loyalty of its consumers, without this loyalty sales will dramatically decrease.
Strives to be the leader in micro brewing while maintaining the core values it started with and had employee buy in even before it went” 100 % employee owned in2013” (Gorski, 2013).
Beer has become one of the most popular and desirable beverages since its creation. Ever since the birth of the first American beer in 1587, this common beverage has been consumed by millions of people, not only for the enjoyment within a social environment, but also for its unique taste (Beer Advocate). Although beer has been present for a considerable amount of time, the process of manufacturing it has changed dramatically since the olden days. One might think that brewing beer is fairly easy, but that is an understatement. Brewing beer not only requires several resources but also a lot of time and labor. Tempo Beer Industries, Israel’s top beverage company, manufactures an assortment of products including energy drinks, soft drinks, wine, and last but not least, beer. Most of the products Tempo Beer Industry has made have assisted in the company sky rocketing to success, but Goldstar Beer has become Israeli’s top selling beer, which is only produced by Tempo Beer Industries itself.
The beverage industry is highly competitive and presents many alternative products to satisfy a need from within. The principal areas of competition are in pricing, packaging, product innovation, the development of new products and flavours as well as promotional and marketing strategies. Companies can be grouped into two categories: global operations such as PepsiCo, Coca-Cola Company, Monster Beverage Corp. and Red Bull and regional operations such as Ro...