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About Coors Brewing Company

Molson Coors Brewing Company (MCBC) is one the world's largest beer makers by market cap. Through its subsidiaries including major brewer MillerCoors, MCBC produces nearly 100 million hectoliters (more than 2.5 billion US gallons) of beer a year. The beer maker's portfolio of brands is led by Molson Canadian, Miller Lite, and Coors Light. MCBC is Canada's second largest brewer by volume, which represents more than 30% of Canada's total beer market sales, and North America's oldest beer company. Outside North America MCBC has a significant worldwide presence including the UK's biggest selling beer, Carling, and the top three in market share in their respective segments throughout the region, such as Kamenitza in Bulgaria and Borsodi in Hungary beer, Staropramen. MCBC operates as Molson Coors International (MCI) in developing markets. The company generates about 70% of total sales from the US.

Operations

As well as its core brands of Blue Moon, Coors Banquet, Coors Light, Miller Genuine Draft, Miller Lite, and Staropramen, regional champion brands Carling, Molson Canadian and other leading country-specific brands, as well as craft and specialty beers such as Creemore Springs, Cobra, Sharp's Doom Bar, Henry's Hard and Leinenkugel's.

Geographic Reach

Closed its existing office in Denver and established Chicago, Illinois as it North American operational based MCBC sells its products worldwide. The US is MCBC's largest market at about 70% of sales, followed by Europe at nearly 20% and Canada at more than 10%, International generates the remaining sales.

The company has seven major brewery/packaging plants in the US, ten in Europe, three in Canada and three in India. It has administrative offices in Chicago, Milwaukee, and Golden, US; Montréal and Toronto, Canada; and Prague, Czech Republic.

Molson Coors International (MCI) sells products in developing markets in the Asia Pacific region, Latin America, and Africa.

Sales and Marketing

MCBC markets products through media advertising (television, radio, print), as well as tactical advertising (signs, banners, point-of-sale materials).

In the US, the company mostly distributes beer through a three-tier system consisting of manufacturers, distributors, and retailers. A national network of approximately 380 independent distributors and one owned distributor, Coors Distributing Company, purchases the company's products and distributes them to on- and off-premise retail accounts. In Europe, MCBC may distribute through either a two-tier system (manufacturers and retailers) or a three-tier system, similar to the US.

Belgian Moon was the largest selling craft beer in Canada.

MCBC's on-premise/off-premise mix (bought in a pub or restaurant versus a supermarket, liquor store, or other retail outlet) varies by country. In the US and Canada, around 85% of sales are off-premise; and in Europe 60%.

Marketing and advertising expense was approximately $1.2 billion in 2019, $1.2 billion in 2018 and $1.3 billion in 2017.

Financial Performance

MCBC's revenue rose for three years then declined in the last couple of years (2018 and 2019).

The company's revenue declined almost 2% from $10.8 billion in 2018 to $10.6 billion in 2019.

In 2019, net income attributable to MCBC decreased 78% compared to the prior year primarily driven by the impact of aggregate goodwill and intangible asset impairment losses of $691.9 million, primarily related to the company's Canada reporting unit. The decrease was also due to lower volume, inflation, restructuring charges and pension and postretirement benefit charges, partially offset by positive global pricing, cost savings, lower incentive compensation, as well as lower interest expense.

MCBC's cash on hand declined $534.5 million during 2019, ending the year at $523.4 million. The company's operations generated $1.9 billion while its investing activities used $433.3 million and its financing used $2.0 billion.

Strategy

MCBC continues to follow a growth strategy that consists of building a stronger brand portfolio, delivering value-added innovation, growing the market share among its core brands, and growing its business in the above premium, craft, cider, and other alcoholic beverage markets.

In line with the company's strategic initiatives to expand its craft portfolio, a wholly-owned subsidiary within its Canadian business completed the formation of an independent Canadian joint venture, Truss LP ("Truss"), with HEXO Corp. ("HEXO") to pursue opportunities to develop, produce and market non-alcoholic, cannabis-infused beverages in 2018. Truss has been preparing for the launch of cannabis-infused products in the Canadian market, including the construction of a production facility in Belleville, Ontario. The company currently expects that Truss will launch products in 2020, subject to obtaining all of the required licenses and regulatory clearances.

MCBC's International segment strategy is centered on its focus markets and focus brands. As its International segment's objective is to grow and expand its business, the company is developing scale and building market share in the countries where it operates. Many of the markets in which it operates are considered emerging beer markets, with other brewers controlling the majority of the market share. The company's beers compete not only with similar products from competitors, but also with other alcohol beverages, including wines, spirits, and ciders, and thus its competitive position is affected by consumer preferences between and among these other categories.

Mergers and Acquisitions

In early 2020, the company entered into an agreement to acquire highly regarded in the Michigan craft beer community for its traditional German-style lagers and unique ales, Detroit-based Atwater Brewery.

In mid-2019, the company has acquired two breweries in Europe as part of a continuing expand its beer portfolio.

Company Background

In an effort to boost its top line, MCBC has looked beyond its core markets to growth markets around the world. Its share of the Canadian and UK market has remained increasingly robust, but luring US beer drinkers is challenging. In 2010, the company's MCI division moved deeper into China, through a venture with Si'hai Brewing Company, as well as Spain, with Mahou San Miguel for Carling beer. MCI also launched Coors Light in Vietnam and Russia, and entered Ukraine, Eastern Europe's second-largest beer market, through a joint venture with local brewer Obolon Company.

Coors Brewing Company

17735 W 32nd Ave
Golden, CO 80401-1217
Phone: 1 (303) 279-6565

Firm Stats

Employer Type: Privately Owned
Director: Meg Beck
Maintenance Manager: Bob Dubois
Senior Programmer Analyst: Paul Gardalen
Employees (This Location): 1,200
Employees (All Locations): 2,000

Major Office Locations

Golden, CO

Other Locations

Benton, AR
Denver, CO
Golden, CO
Longmont, CO
Monte Vista, CO
Wheat Ridge, CO
Washington, DC
Burley, ID
Gurnee, IL
Huntley, MT
Edison, NJ
Cincinnati, OH
Memphis, TN
Elkton, VA
Worland, WY