MillerCoorsBackgroundBenefitsRisksMixed Efforts Aren’t EnoughInteresting FactsIs It Worth It?BibliographyMillerCoorsMiller, Coors join forces to battle BudweiserPresented by : Chris ZalesAlex JonesAdrian SmithBackground•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 marketBenefits•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 announcementRisks•$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 LightMixed Efforts Aren’t EnoughAnheuser-Busch: $417 MillionMiller +Coors Combined: $330 MillionInteresting 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
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