Transcript BA495_MillerCoors_Presentation(2).ppt

MillerCoors
Miller, Coors join forces to battle
Budweiser
Presented by :
Chris Zales
Alex 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 AnheuserBusch
• 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=1
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• http://www.youtube.com/watch?v=EJJL5dxgVaM