Molson Coors Beverage Company  (TAP)
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Molson Coors Beverage Company

Business Description

Since our founding in 1873, we have been committed to producing the highest-quality beers. Our portfolio of brands is designed to appeal to a wide range of consumer tastes, styles and price preferences. Until our acquisition of CBL in February  2002, we operated and sold our beverages predominately in North America and in select international markets. The CBL acquisition expanded our international presence to include significant operations and sales in the United Kingdom.

Our Products

We own or license all of our trademarks for all of our brands. Brands sold primarily in the Americas include: Coors Light®, Coors Original®, Coors® Non-Alcoholic, Extra Gold®, Zima®, George Killian’s® Irish Red TM Lager, Keystone®, Keystone Light®, Keystone Ice®, Blue MoonTM Belgian White Ale and Mexicali®. We also sell the Molson family of brands in the United States through a joint venture. Brands sold primarily through CBL include: Carling®, Worthington®, Caffrey’s®, Reef®, ScreamersTM and Stones®. We also sell Grolsch® in the United Kingdom through a joint venture.

In the United Kingdom in 2003, we achieved considerable success with the continued roll-out of Carling Extra Cold, which is dispensed at on-trade locations (pubs, clubs, restaurants and hotels) at two degrees centigrade, four degrees cooler than traditional English draft lagers. Additionally, in the last quarter of the year, we introduced Coors Fine Light Beer to the on-trade channel. In January  2004, we launched this beer into the off-trade channel (retail and wholesale) and commenced television advertising for the product. In the United States in 2004, we plan to introduce a low-carb beer called Aspen EdgeTM, and a variety of new flavored Zima products, collectively called Zima XXXTM (in select US markets).

In the United Kingdom, in addition to supplying our own brands, we sell other beverage companies’ brands to our on-premise customers so as to be able to provide them with a full range of products for their retail outlets. These factored brand sales are included in our financial results, increasing our net sales and cost of goods sold, but the related volume is not included in our reported sales volumes.

Our malt beverages compete with numerous above-premium, premium, low-calorie, popular-priced, non-alcoholic and imported brands. These competing brands are produced by national, regional, local and international brewers. We compete most directly with Anheuser-Busch (AB) and SABMiller (Miller), the dominant beer companies in the US industry.

Our principal competitors are Scottish Courage Ltd., Interbrew UK Ltd. and Carlsberg-Tetley Ltd. We are the United Kingdom’s second-largest brewer, with an approximate 20% market share (excluding factored brands sales).

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