Bud Light and Coors Light

Paper Summary:

Light beers have become a viable product in the last few years showing a certain ambiguous health consciousness on the part of the public, at least in America, so that people continue to drink beer but try to reduce their caloric intake at the same time. This paper compares the international markets for the products Bud Light (Anheuser-Busch International, Inc) and Coors Light (Coors Brewing Company).
The paper shows that taste may be a consideration in deciding which beer to purchase, but the success or failure of a lite beer in the international marketplace will depend as much on the marketing and distribution apparatus and skills of the companies that produce these beers, thus raising the issue of whether Anheuser-Busch or Coors will be better able to deliver the product to the consumer. The paper concludes that by this criterion in particular, Bud Light is in a better position than Coors Light.

From the Paper:

"Coors has been making progress in the international marketplace as well, but it has also encountered some problems. Canada is a major market for beer, as noted, and Coors had an agreement with Canada's biggest brewer, Molson Breweries, for licensing rights to Coors' top-selling beers in Canada. A dispute arose in 1996 leading to an agreement that Molson would continue to brew and sell Coors Light, Canada's dominant light beer, and Original Coors through June 30, 1997, with doubts about what would happen after that. A court ruling had found that Molson had breached its licensing deal by allowing Miller Brewing Co., a unit of Philip Morris Cos. Inc., to buy a 20 percent stake without Coors' consent in 1993. Molson Breweries is also owned 40 percent each by Toronto-based Molson Cos. Ltd. and Australia's Foster's Brewing Group Ltd. Molson had to pay Coors damages in the millions of dollars (Schuettler, "Coors/Molson Agree"). Coors Light is the dominant light beer in Canada, commanding a 5 to 5.5 percent share of the beer market, and Coors can ill-afford to ignore this market (Schuettler, "Molson Shares Dive")."

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