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Transcript of Miller Coors
Grow, Shrink or Abandon?
More industries = More products
Domestic - 15 (Keystone)
Craft - 6 (Blue Moon)
Import - 6 (Pilsner)
Specialty - 6 (Redds)
"Our Mission is winning in beer through our Critical Success Factors of earning customer preference, evaluating our brands, fueling growth, engaging people and embracing responsibility."
-Tom Long, Chief Executive Officer at Miller Coors
Miller Coors Strategy
Which markets will the company be active in?
Internal development, JV, Acquisition, Licensing/Franchising
Cost, reliability, quality, customer service
Speed and sequence of moves
"At Miller Coors, our vision is to create America's best beer Company."
-Tom Long, Chief Executive Officer
Plan - “conception preceding action” - Football, summer & celebrations
Ploy - “maneuver” - spin off the world’s 2nd best seller beer
Pattern - “stream of actions” - matching world’s consumption of sweet drinks
Position - BCG Matrix - 29.1%, low industry growth
Perspective - “a drink for women” - offensive & ambiguous
BEER. (2012). Restaurant, Food & Beverage Market Research Handbook, 298-303.
Beer Sales. (2013). Business Tools. Retrieved from: http://www.brewersassociation.org/
Estrel, M. (2012). Introducing Iced-Tea beer. Wall Street Journal: Business. Retrieved from:
Mintzberg, H. (1987). The Strategy Concept I: Five Ps For Strategy. California Management Review, 30(1), 11-24.
MillerCoors. (2013). Great Beers: Supply Chain. Our Brands. Retrieved from:
Pennington, R. (n.d). Industry: Malt Beverages (Beer). University of Central Florida: Managerial Economics ECP 4703.
Shenna (2013). Restaurants, pubs and cafes. Images. Retrieved:
Based on Jim Harvey's speech structures
Robert Chiappone, Marque Melita, Emma Smetaniuk
Miller Coors Strategy
Product Add/ Drop
Coors Ice Tea
Proud History & Milestone Timeline
1975 Miller Lite Introduced
1978 Coors Introduced the "Silver Bullet"
1989 Coors Introduces Keystone Franchise
South African Brewers Buys Miller Company
SABMiller becomes the 2nd largest brewery
2002, Coors Merges with Molson to form Molson Coors
2008, SABMiller and Molson enter into a Joint Venture in the United States to Create Miller Coors
Market Share 29.1%
2nd Largest Brewing Company In the world
Complete line of draft beers (specialized filtration system)
One very large competitor
Slow industry growth
Foreign Market explosive growth
Increase awareness of sustainability issues among consumers and employees
Falling Beer consumption worldwide
Latin America & Caribbean
Miller Coors Joint Venture
40 million barrels of beer per year
690 distributors to approx. 50 foreign markets
3rd Largest Brewery
17 million barrels per year to over 49 states in the U.S
12 Foreign Markets & 16 Countries Worldwide
Miller Coors Now Maintains 29.1% Market Share
Acquisition of 100 Microbreweries
Licenses and distribution for many global partners
Extensive Brand Portfolio
Innovative ideas to enhance drinking experience
Porter's 5 Forces Analysis
Rivalry Among Firms
Anheuser Busch, Boston Beer Co. Heineken USA
(Barriers to Entry - Large Capital)
Technical Expertise - Brewing
Supply Chain Strategy
7200 Rail Cars & 441,000 Trucks
Partnered with the SmartWay Transport Program
Implemented sustainable initiatives that cut raw material waste
Threats & Substitutes
Home brewers and increased sales of wine and Liquor
Bargaining Power of Suppliers
Have a lot of power because they’re only a small amount of key ingredients.
Solution – Breweries making their
Bargaining Power of Buyers
Threat of New Entry
The Failing Strategy of C.L.I.Tea using Mintzberg’s model
Low barriers to entry
Focused Differentiation Strategy
Industry leaders chose not to compete in this niche
difficult to meet specialized needs of consumers
Hazards of Low Cost Strategy
Too fixated on lowering costs and ignores buyers interest
Declining buyers sensitivity to price
Proposed New Strategy: Focused Differentiation
Leaves traditional Market
Addressing diverse taste of Market
Offers good growth potential