Case Type: Market Size
Case Style: Candidate Led
Industry: Beverages
Case Type: Market Size
Industry: Beverages
Case by IBM Global Services
Our Client, Molson Coors Beverage Company, commonly known as Molson Coors is a multinational drink and brewing company headquartered in Chicago, US. For more than two centuries Molson Coors has been brewing beverages that unite people for all of life’s moments. While the company’s history is rooted in beer, Molson Coors offers a modern portfolio that expands beyond the beer aisle with sparkling cocktails, hard coffee, canned wine, kombucha, cider and more.
From Coors Light, Miller Lite, Molson Canadian, Carling and Staropramen to Coors Banquet, Blue Moon Belgian White, Saint Archer Gold, Leinenkugel’s Summer Shandy, Creemore Springs, and more, Molson Coors produces some of the most beloved and iconic beer brands ever made.
The Sales & distribution division at Molson Coors has recently published an internal report which stated that Molson Coors may be experiencing a revenue loss of up to 2% due to handling & transportation errors and cited the use of glass bottles as the main reason for it. For preventing this revenue spillage, the company is considering switching to plastic bottles for packaging its flagship product Coors Light. They have hired you to evaluate the idea and highlight the advantages & disadvantages of doing so.
Additional information (To be provided only on request)
- Molson Coors currently holds 25% of the total US beer market. Coors Light accounts for 20% of their revenue.
- Current bottling cost of Coors Light is 10 cents per unit and is likely to reduce by 50% if they switch to plastic bottles
- Infrastructural changes required for switching would cost Molson around $5 million
- Currently metal cans & glass bottles are widely used for packaging & distributing beer across the country
- Product quality & shelf life is expected to be the same irrespective of whether it is packaged in metal cans, glass bottles or plastic bottles
- On average, Beer costs $1 per 12 oz. bottle to end consumers across US
To read the full article
THE CASE CONSULTANTS
CONTINUE READING YOUR ARTICLE WITH PRO-MEMBERSHIP
STARTING LESS THAN ₹99 PER MONTH
A good candidate should be able to provide a decent analysis for evaluating the economics of using plastic bottles at Molson. Question is aimed at testing the industry knowledge, creativity and structured thinking of the candidate. Analysis provided under possible answer section can be referred for evaluation.