MOLSON CANADIAN ANA

Jordan Abraham
301425141
Question 1: Company Background
a)
Molson Canadian, founded in 1786 by John Molson, is one of Canada’s
longest standing and most prominent breweries. Molson takes pride in their
rich Canadian history, spanning over two centuries. The brewery is
committed to providing a quality beverage that reflects their heritage and
unites people to celebrate all of life’s moments (Molson Coors, n.d.). In 2005,
the Molson Brewery and the Adolph Coors Company merged to become the
Molson Coors Beverage Company. As of 2022, Molson Coors is now one of the
top beverage companies on the planet, bringing in over 10.7 billion dollars in
sales revenue (Ridder, 2023). The Molson Coors Company owns many
brands, including AriZona Hard, Coors Light, Miller Genuine Draft, and many
more.
The Molson brand has had many products throughout its history. Some
items on its current roster include the flagship product, Molson Canadian
Lager, which is sold in various forms, such as cans or bottles. Additionally,
they offer cider, cups, and even apparel.
Molson Canadian’s biggest strength lies in its loyalty with their
domestic customers. Their rich heritage and legacy in Canada, coupled with
their commitment to having ingredients sourced from Canada, make it an
easy pick for Canadians. When it comes to the consumption of beer, 83
percent of Canadians choose domestic beers over imported beers (Alcohol
Sales in Canada, 2019/2020., 2020), positioning Molson Canadian amongst
the top 5 beers sold in Canada (Tsekouras, 2023).
Although Molson Canadian has a strong domestic presence, it is far
behind global competitors such as Budweiser, Heineken, and others in terms
of global sales (The Most Popular Beers in the World (2023), 2023).

Question 2: Competitive Environment

a)
Molson Canadians major competitors are both direct competitors to the
company. Those companies are Budweiser and Heineken, which are the top 2
beer companies in the world, generating over 57.7 and 38 billion dollars in
revenue, respectively (Kolmar, 2023). Both companies target the same
market and are providing the consumer with a similar product, albeit with
minor changes such as flavour and ingredients. Both Heineken and
Budweiser, being established brands, boast their own histories, brand
recognition, and loyal customer bases.
Heineken and Budweiser also cater to the same types of consumers,
offering light variations for casual consumers, such as Bud Light, which
competes with Molson's Molson Canadian Light beer. Additionally, for those
who prefer non-alcoholic options, Heineken provides Heineken 0.0, while
Molson Canadian caters to the same group with their beverage, Molson Exel.

Both Heineken and Budweiser can both be found in the same places
where Molson Canadian can be found, such as on tap in bars, liquor stores,
and restaurants, all while being at a similar price point.

b)
Molson Canadian distinguishes itself from its competitors in many
ways. The main way that Molson distinguishes itself is how they take pride in
their deep-rooted Canadian heritage, which gives a sense of national pride to
the consumer.
They appeal to the Canadian consumer with their partnerships. Molson
Canadian has had a long-time partnership with the NHL, exemplified by the
prestigious Molson Cup. Given how hockey is synonymous with Canada,
having a partnership with the NHL only strengthens their national identity
and reception amongst consumers. Their advertisements also showcase their
love for Canada with the iconic I am Canadian advertisements from the ‘90s
or the Red Fridge campaign, in which a red fridge full of beer was sent
around the world and could only be opened with a Canadian passport
(Molson’s Fridge Quenches the Thirst for Unity, 2018).
Furthermore, Molson sources their ingredients locally, which sets them
apart from Budweiser and Heineken, which choose to source their
ingredients internationally. Their commitment to using local ingredients helps
improve their image among consumers, many of whom are willing to pay a
premium for local ingredients (How Many Canadians Are Willing to Pay Extra
for “Locally Grown” Produce, 2020).
In conclusion, Molson Canadian stands out in the crowded beer market
thanks to its unique blend of cultural identity, partnerships, and dedication to
local sourcing.
Question 3: SWOT Analysis
Internal Strengths Weaknesses

 Strong cultural identity  Poor Global recognition and

- Molson’s strong heritage sales
resonates with Canadian - Molson has struggled to
customers and builds brand gain brand recognition
loyalty. and market share in
global markets when
 Locally and sustainably compared to its
sourced ingredients competitors.
- The commitment to locally
and sustainably sourced  Limited Innovation
ingredients aligns with - Molson has not adapted
consumer preferences and its offerings to appease
helps enhance Molson’s other growing alcoholic
brand image. beverage markets such
as gin or wine (Alcohol
 Diverse product selection Sales in Canada,
- The wide selection of 2019/2020., 2020).
products helps cast a large
net to capture as many  Dependency on Canadian
potential customers as heritage
possible. - Molson’s dependency on
its heritage could prove
 Top 5 beer company in Canada to be a hindrance when
- Molson holds a prominent trying to adapt to
position in a highly international markets
competitive market, which with different
reflects its popularity preferences.
among customers.
External Opportunities Threats

 Worldwide expansion  Crowded market

- Molson Canadian can - Molson faces intense
expand globally and competition from more
diversify its customer base, prominent and successful
which will help build its brands.
international presence.
 Substitute alcoholic
 Craft beer market beverages
- Molson can develop - With the rapid growth of
specialty craft beers using other alcoholic beverages
its established brewing such as pre-mixed
equipment to tap into a cocktails or tequila
growing craft beer market (Alcohol Trends 2023: Key
(Biscotti, 2023). Factors Shaping the
Industry This Year, 2022),
 Aging Population Molson faces the loss of
- The largest age group in customers if they do not
Canada ranges from 55 to adapt.
60 years old (Zimonjic,
2022). This age group  Increasing alcohol tax
typically has the most - Upcoming increases to
purchasing power. Tailoring Canada’s alcohol tax
products and strategies to (Stober, 2024), combined
this age group can provide with the rise of inflation
the company with sales and in Canada, can prove to
brand loyalty. be a threat to Molson’s
profitability.
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