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Molson Coors purchases StarBev.

Discussion in 'Beer News' started by Pete0714, Apr 4, 2012.

  1. Pete0714

    Pete0714 Aficionado (150) Indiana May 18, 2011

    Interesting read about Molson Coors strategy to deal with sales drop. Even more interesting is why sales are dropping.
    http://www.bloomberg.com/news/2012-...raft-armada-with-3-5-billion-deal-retail.html

    Thought of the day for Molson Coors: Why, when you know that the reason your losing sales is that your beer is not desireable to an increasingly discerning public, do you just choose to ignore the problem and expand into Europe. Why not just admit that you need to make better beer? Sounds to me like the better response.
    Apologies if this has been posted. Didn't see it anywhere else.
     
  2. Bluecane

    Bluecane Initiate (0) New York Dec 30, 2011

    It's not that they can't make better beer; it's just not their business model. And to completely change that business model would entail massive costs. It's not just as simple as "make better beer."

    Expanding may feel silly, but they aren't ready to abandon the business they've spent decades honing.
     
    Duff27 likes this.
  3. Mebuzzard

    Mebuzzard Poobah (1,030) Colorado May 19, 2005

    I'd agree with Bluecane; it's their m.o. If you change the product then you will lost some die hard customers. May as well expand into untapped markets...for now. Kinda sounds "Roman Empire-esque"

    It would interesting to hear what the Big Boys are more worried about: hundreds of little breweries, or several big 'malt-pop, vodka infused' makers. Coors is already swallowing up cider makers...wonder what's next :rolleyes:
     
  4. JimKal

    JimKal Savant (325) North Carolina Jul 31, 2011

    Thanks for the interesting article. There plan is to move into a market where people have been drinking beer for centuries and sell them an AAL. They will advertise the heck out of it and get some sales and get some sales but I think, in the long run, it may not be a very good plan. On a side not from the end of the article - if InBev buys Miller, will we have to stop use the term BMC?
     
  5. acevenom

    acevenom Advocate (545) Louisiana Oct 7, 2011

    If InBev buys Miller, my cheap beer purchases would likely come to an end.
     
  6. Hanzo

    Hanzo Champion (955) Virginia Feb 27, 2012

    You have to change the term to BMF.

    Big Mutha F'er cause that would be crazy.
     
  7. The generally agreed upon speculation within the industry is that if AB-InBev buys SABMiller, the US anti-trust regulators would make them spin-off their share of MillerCoors, with MolsonCoors being the logical buyer. They did this with the Labatt label in the US when InBev took over A-B and Labatt had less than 1% of the US market, as opposed to the near 30% controlled by MillerCoors.
     
  8. Pete0714

    Pete0714 Aficionado (150) Indiana May 18, 2011

    Interesting thoughts. Yes, I agree that it seems to be their M.O to just expand and advertise, but I also agree that in the long run, they are only stretching themselves ever thinner, without an apparent plan in the works for retooling their image and quality (Rome fell by a similar fate). For years they have advertized "smoother, easy going down" but if that is not what people care about anymore, they are in serious trouble. They look completely out of touch with the trends, and I certainly hope we don't end up with having a GM-style crisis on our hands where they overstretch themselves so much that they risk collapse. I know it sounds far fetched, but really, I think they are sowing the seeds. Stretch out, yes, but also take the time now to start rethinking their beers, with a 5-10 year plan to evolve into a large yet more competitive brand.
     
  9. Ranbot

    Ranbot Savant (460) Pennsylvania Nov 27, 2006

    This pretty much sums up the reason for this and other recent purchases (like Foster's last year): "Molson Coors plans to accelerate its expansion in emerging markets “to maintain the long-term health of our business,” Chief Executive Officer Peter Swinburn said..."

    They are just shifting their focus from stagnant or even losing US markets to international markets that more favorable for their brands.
     
  10. Why would InBev buy SABMiller? They would have massive over-capacity problems and would likely shut down several plants, probably some of the Miller ones.
     
  11. They would purchase the brewery to either shut it down get rid of labels or sell off labels. Most importantly it is about Miller's distribution network arguably the second best one in the world behing ABI.
     
  12. n2185

    n2185 Advocate (640) North Carolina Apr 14, 2008

    Molson Coors doesn't try to out-compete their competition by making quality craft brews for the same reason that McDonald's doesn't try to out-compete Burger King by making a filet mignon burger.
     
  13. campbmsu2

    campbmsu2 Aficionado (145) Michigan Feb 10, 2005

    yo yo yo yo yo

    MolsonCoors did not purchase the Fosters Group, SABMiller did.

    SABMiller and MolsonCoors are two separate companies that have a JV in the US named MillerCoors.

    When InBev purchased/ate Anheuser-Busch, they had to lose the importation rights to the Labatt brand due to the combined market share in certain areas of the US being an almost total monopoly. One specific example is upstate NY, where Labatt (not including Genny etc...) and Budweiser account for an extreme share of the fizzy yellow beer pie.

    On this note, traditional brands that we Americans consider "Labatt" brands including Alexander Keith's and Kokanee remain ABI brands. NAB only imports the Labatt family of brands. Under the agreement of the importation, they also had to source the beer within three years to a non-ABI plant. Thus, MolsonCoors in Canada now brews Labatt for the US market.

    StarBev was formally owned by InBev. http://en.wikipedia.org/wiki/Staropramen_Brewery

    They still distribute the InBev brands in their multinational territory, however Staropramen isn't imported by ABI to the US anymore. I cannot find who now imports it.

    So, in nutshells, MolsonCoors is competing against SABMiller and recently purchased StarBev, a brewer formally owned by InBev. MolsonCoors is now the proud distributor of the InBev brands such as Stella and Beck's for this 7 nation territory.

    A tad confusing. There are multiple instances of this throughout the world, however. Hope my facts are straight.
     
  14. campbmsu2

    campbmsu2 Aficionado (145) Michigan Feb 10, 2005

    And on the ABI purchase of SABMiller...There wouldn't be capacity issues because they would be forced to sell off their portion of the MillerCoors JV in the US. Despite what we commonly think, SABMiller and ABI generally do not overlap each other in their prime markets. SABMiller is poised for good growth with their location in many emerging markets. The US market is the only area where they will overlap extensively brewing wise.
     
  15. NAB also brews some "Labatt" branded beers at the Genesee brewery in Rochester now, among them Labatt Lime, Labatt Ice, a low calorie Labatt 52 and a recent series of "limited classic" beers (a Porter, a Marzen, and a Red Amber)

    The post-A-B-InBev importer is (or, was) S&H Independent Premium Brands, LLC out of Denver, CO.
     
  16. "Synergies"
     

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