Documente Academic
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Documente Cultură
October 2013
Scope
Disclaimer
Much of the information in this briefing is of a statistical nature and, while every attempt has been made to ensure accuracy and reliability, Euromonitor International cannot be held responsible for omissions or errors. Figures in tables and analyses are calculated from unrounded data and may not sum. Analyses found in the briefings may not totally reflect the companies opinions, reader discretion is advised.
The 2012 acquisition of StarBev raised Molson Coors from ninth to seventh in the global beer market and significantly expanded its international coverage. This profile analyses the opportunities deriving from the acquisition and considers ways in which the company can address the remaining weaknesses in its core market operations and its geographic profile.
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STRATEGIC EVALUATION COMPETITIVE POSITIONING MARKET ASSESSMENT GEOGRAPHIC AND CATEGORY OPPORTUNITIES BRAND STRATEGY OPERATIONS RECOMMENDATIONS
STRATEGIC EVALUATION
Global beer volume 3.2% share 2012: Global beer volume 23.9% growth 2012: Molson Coors: Global Alcoholic Drinks Volumes 2008-2012
7,000 6,000 Million litres 5,000 4,000 3,000 2,000 1,000 0 2008 2009 2010 2011 2012
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STRATEGIC EVALUATION
4,000
3,500
US$ million
3,000
Molson Coors recorded an 11% increase in net sales in 2012, primarily as a result of the acquisition of StarBev, positive pricing in Canada and higher volumes for its Molson Coors International segment, which includes Asia, continental Europe (outside Central Europe), Mexico, Latin America and the Caribbean. The positive impact of these factors was partially offset by declining volumes in Canada and the UK. Net income declined in 2012 mainly as a result of financing related to Molson Coors Central Europe and costs pertaining to the deconsolidation of Molson Coors Si'hai, the companys joint venture in China, restructuring charges incurred by each of its segments, and unfavourable foreign currency movements.
2,500
2,000
1,500
1,000
500
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STRATEGIC EVALUATION
Q2 2012
Net Sales Net Income
Q2 2013
Operating Income
According to Molson Coors, brand and packaging innovations and the strength of its abovepremium brands, an area in which it is working to improve its portfolio, made significant contributions to its positive results.
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STRATEGIC EVALUATION
Ownership structure
Molson Coors ranks With the Molson and among the top three Coors families players in each of its controlling voting rights, three largest markets, the company is in a the US, Canada and the relatively strong position UK - all important, highto develop coherent margin markets for beer long-term strategies and companies. has some protection against hostile takeover attempts. OPPORTUNITIES Expansion in emerging Craft beer and cider/perry markets growth Molson Coors is While overall beer developing its presence volume growth is in several emerging expected to remain markets, particularly in sluggish at best in its Asia Pacific, which is core markets, craft beer predicted to drive global and cider/perry offer volume growth over significant potential for 2012-2017. expansion.
Reliance on mature Limited presence in key markets growth markets Despite the 2012 Despite its international acquisition of StarBev expansion efforts, expanding its presence Molson Coors still lacks in Eastern Europe, a major presence in key Molson Coors remains Latin American markets, heavily reliant on mature and has not yet markets in North established itself Asia America and Western Pacific. Europe.
THREATS
Premiumisation in the US Raw material prices While the Volatile raw material premiumisation trend in prices place a growing the US presents notable onus on Molson Coors opportunities, Molson efforts to increase Coors needs to address operational efficiency, the weakness of its offer develop local production in categories such as and build a higherpremium lager. margin offer.
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STRATEGIC EVALUATION
Develop through partnerships Strategic alliances play a key role in Molson Coors operations, both in terms of building its position in core markets and expanding its geographic profile. In its largest market, the US, the company operates through a joint venture with the worlds second largest brewer, SABMiller. The company has also looked to expand its international presence through partnerships with local players, including Moscow Brewing Co in Russia and Viet Thai in Vietnam. However, it decided to liquidate its underperforming Chinese joint venture in 2012.
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STRATEGIC EVALUATION COMPETITIVE POSITIONING MARKET ASSESSMENT GEOGRAPHIC AND CATEGORY OPPORTUNITIES BRAND STRATEGY OPERATIONS RECOMMENDATIONS
COMPETITIVE POSITIONING
10
5 0 -5
2007-08
2008-09
World
2009-10
Molson Coors
2010-11
2011-12
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COMPETITIVE POSITIONING
SABMiller
Heineken Carlsberg China Resources Enterprise Tsingtao Brewery Molson Coors Beijing Yanjing Brewery Grupo Modelo Kirin Holdings
9.9
8.8 5.7 5.3 3.7 2.7 2.9 2.8 2.6
9.7
9.2 5.7 5.6 4.1 3.2 3.0 2.8 2.5
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COMPETITIVE POSITIONING
Lack of major acquisition opportunities is set to lead to a slowdown in the consolidation process in the forecast period, with major players focusing on organic growth by leveraging their wide geographic coverage. Acquisitive activity is likely to focus on smaller third- or fourth-tier players, as major brewers look to enter consolidated markets or enhance distribution. Beer: Growing Consolidation 2003/2007/2012
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COMPETITIVE POSITIONING
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STRATEGIC EVALUATION COMPETITIVE POSITIONING MARKET ASSESSMENT GEOGRAPHIC AND CATEGORY OPPORTUNITIES BRAND STRATEGY OPERATIONS RECOMMENDATIONS
MARKET ASSESSMENT
80%
Australasia
Volume share
40%
North America
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MARKET ASSESSMENT
3
1 -1 -3
Note: Bubble size indicates company share of region in 2012. Range displayed 0.1-15.9%
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MARKET ASSESSMENT
Standard Lager
Note: Bubble size indicates company share of category in 2012. Range displayed 1.0-5.5%
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STRATEGIC EVALUATION COMPETITIVE POSITIONING MARKET ASSESSMENT GEOGRAPHIC AND CATEGORY OPPORTUNITIES BRAND STRATEGY OPERATIONS RECOMMENDATIONS
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The problems that beset MillerCoors in the US towards the end of the review period are likely to persist over 20122017, as US lager drinkers increasingly switch to premium options. MillerCoors needs to develop its premium lager offer, which lacked a brand in the top 15 in 2012. Developing MillerCoors presence in premium light lager by strengthening the positioning of Coors Light, Miller Lite and Miller 64 is a key strategic focus for the company. Furthermore, while not yet a major brand in the market, Peroni Nastro Azzurro, which comes under the auspices of MillerCoors Tenth and Blake division, performed well during 2012. SABMiller has shown in other markets, such as the UK, that the brand has the potential to tap into demand among brand-conscious premium lager consumers, especially when supported by draught expansion. Moreover, Molson Coors newly acquired Staropramen brand could be developed along similar lines.
20,000
Million litres
15,000
10,000
5,000
0 2007 Stout Economy Lager Premium Lager 2012 2017 Low/Non-Alcohol Beer Standard Lager Dark Beer
Dark beer continues to offer notable opportunities for MillerCoors to build on its strong category lead. Like premium lager, dark beer is forecast to post a CAGR of 2% in volume terms over 2012-2017, with growth driven by the rising popularity of craft beer.
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1,000
800 600 400 200 0 Dark Beer Premium Standard Economy Low/NonLager Lager Lager Alcohol Beer Stout
4
3 2 1 0 -1
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Million litres
% CAGR 2012-2017
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20
15 10 5 0 Carlsberg Heineken SABMiller A-B InBev Anadolu Group Molson Coors
2011 2012
Obolon ZAT
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% CAGR 2012-2017
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80%
Volume share
60%
40%
20%
As well as consumers trading up, the market is expected to see Western beer culture significantly deepen its penetration, driving increasing on-trade consumption among younger consumers in particular. Molson Coors should consider acquiring a local producer or distributor, though its capacity to do so has been constrained by the StarBev acquisition.
Euromonitor International ALCOHOLIC DRINKS BEER: MOLSON COORS BREWING CO
Standard Lager
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% CAGR 2012-2017
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Moreover, imported premium lager is expected to see a 10% CAGR in Brazil over 2012-2017, though it will remain a small category even at the end of the forecast period. Molson Coors could utilise partnerships to develop its presence in Brazil. Japanese player, Kirin, which has been looking to establish itself in the market since its 2011 acquisition of Schincariol, is a possible partner, though neither Kirin nor Molson Coors have much experience of the Brazilian market. Joining forces with a Brazilian company, such as Cervejaria Petrpolis, could bring Molson Coors the benefit of local market knowledge. Brazil: % Volume Share of Main Players in Beer 2012
A-B InBev Kirin Cervejaria Petrpolis Heineken Others
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STRATEGIC EVALUATION COMPETITIVE POSITIONING MARKET ASSESSMENT GEOGRAPHIC AND CATEGORY OPPORTUNITIES BRAND STRATEGY OPERATIONS RECOMMENDATIONS
BRAND STRATEGY
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STRATEGIC EVALUATION COMPETITIVE POSITIONING MARKET ASSESSMENT GEOGRAPHIC AND CATEGORY OPPORTUNITIES BRAND STRATEGY OPERATIONS RECOMMENDATIONS
OPERATIONS
STRATEGIC EVALUATION COMPETITIVE POSITIONING MARKET ASSESSMENT GEOGRAPHIC AND CATEGORY OPPORTUNITIES BRAND STRATEGY OPERATIONS RECOMMENDATIONS
RECOMMENDATIONS
Step up craft beer investment Craft beer is seeing significant growth in many markets, including Molson Coors otherwise struggling core markets of the US, Canada and the UK. Maintaining investment in the development of its craft beer offer should be a key strategic priority for the company. At the same time, however, the company should work to maintain the relative independence of its craft beer operations in order to preserve the image of authenticity associated with its brands.
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Expand in cider/perry Molson Coors should work not to be left behind in major brewers rush to develop a presence in the expanding cider/perry category. Including The Crispin Cider Company in MillerCoors craft beer division in the US is a sensible move, given the trend towards artisanal-style cider, and the company should consider a similar path in Canada. Meanwhile, the premiumisation of cider in the UK may require the company to diversify its offer to include a more upmarket brand than Carling.
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