1. Executive Summary
Molson is one of the 2 giant competitors on the monopolistic Canadian beer market. Due to shifts in the external environment (changing Canadian demographics, global trend towards consolidation, increase in microbrewery and imported beer consumption in Canada) and to internal pressures, the company decided to pursue a strategy of international expansion in 2000.
Molson entered the Brazilian market in two stages.
1. by acquiring BAVARIA in 2000, for $98 million CAD
2. by acquiring KAISER in 2002, for $912 million CAD (for a 80% interest)
After these two acquisitions Molson doubled its brewing capacity and gained a foothold in an important emerging market. As this was Molson's first major foray into a South American market there are considerable risks in the pursuit of this strategy.
The present paper delivers an external and internal analysis, critiques the current strategy chosen by Molson, and delivers a detailed implementation plan to ensure a successful completion of the chosen strategy.
The implementation plan is designed to ensure a smooth integration of the Brazilian acquisitions with Molson's current operations in Canada and the USA.
The strategy implementation plan covers the functional areas of sales and marketing, distribution, manufacturing and finance. It will examine the actions needed to be taken in the two markets - Brazilian and Canadian.
2. Background Information
"My beer has been universally well-liked beyond my most sanguine expectations."- John Molson, January 18th, 1786
Molson is one of Canada's oldest company's dating back to 1786. From modest beginnings the company has gone through multiple periods of growth. Through the 1800's the company was involved in multiple businesses such as railroads and banks but began to concentrate on growing their brewing operations from the 1900's onward. Now as the company prepares for the new millennium they have embarked on establishing...