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