SABMiller's Exit From Molson Coors Partnership Provides Opportunity for Improved Canadian On-Premise Beer Position

SABMiller's Exit From Molson Coors Partnership Provides Opportunity for 
Improved Canadian On-Premise Beer Position 
NEWTON, MA -- (Marketwire) -- 03/04/13 --  "SABMiller is putting its
own team on the ice now," says Chuck Ellis of SABMiller's prospects
now that the company has dissolved its Canadian partnership with
Molson Coors. Ellis is President of Restaurant Sciences LLC (Newton,
MA), which tracks on-premise food and beverage sales in the U.S. and
Canada. "Our Q4 2012 sample of more $30MM in beer sales for Canadian
restaurants and bars looked at brand distribution. We were surprised
by the depth of brand diversity in spite of AB-Inbev and Molson
Coors' control of a combined 80 percent market share."  
The chart below shows the Top-25 brands for Q4 of 2012: 

                   Canadian On-Premise Brand Rank, Q4 2012                  
Rank Brand                  Manufacturer           Canadian Distributor     
1    Budweiser              Anheuser-Busch         AB Inbev                 
2    Granville Island       GIB/Creemore Springs   Molson-Coors             
3    Kokanee                Anheuser-Busch         AB Inbev                 
4    Alexander Keith's      Anheuser-Busch         AB Inbev                 
5    Coors Light            Molson-Coors           Molson-Coors             
6    Guinness               Diageo                 Diageo Canada            
7    Labatt                 Anheuser-Busch         AB Inbev                 
8    Heineken               Heineken               Molson-Coors             
9    Corona Extra           Modelo                 Molson-Coors             
10   Molson Canadian        Molson-Coors           Molson-Coors             
11   Stella Artois          Anheuser-Busch         AB Inbev                 
12   Miller Genuine Draft   SABMiller              Molson-Coors             
13   Okanagan Spring        Sapporo International  Sapporo/Sleeman          
14   Rickard's              Molson-Coors           Molson-Coors       
15   Big Rock               Big Rock Brewery       Big Rock Brewery         
16   Sleeman                Sleeman Brewery        Sapporo/Sleeman          
17   Kronenbourg            Carlsberg Group        Carlsberg Group          
18   Carling Black Label    Molson-Coors           Molson-Coors             
19   Phillips               Phillips Brewing       Phillips Brewing Company 
20   Strongbow Hard Cider   Heineken N.V.          Molson-Coors             
21   Moosehead              Moosehead Breweries    Moosehead Breweries LTD  
22   Lighthouse             Lighthouse Brewing     Lighthouse Breweing      
                            Company                Company                  
23   Rolling Rock           Anheuser-Busch         AB Inbev                 
24   Social Lager           GIN/Creemore Springs   Molson-Coors             
25   Driftwood Ale          Driftwood Brewery      Driftwood Brewery        

"Of the Top-25 on-premise beers in Canada, only Budweiser has a
double-digit market share," said Ellis. "The Canadian market is an
intensely competitive landscape with twenty-five brands having
on-premise share-of-sales of 1 percent or greater." While Molson
Coors has 39 percent of Top-25 on-premise sales by dollar (compared
to 40 percent for AB Inbev), SABMiller's Miller Genuine Draft makes
up only 7.7 percent of the total. Here's a look at what MGD had to
compete with for attention as part of the Molson Coors portfolio:  

Top-25 On-Premise Brand    Manufacturer                      Distributor    
Granville Island           Granville/Creemore Springs (M-C)  Molson-Coors   
Coors Light                Molson-Coors                      Molson-Coors   
Heineken                   Heineken N.V.                     Molson-Coors   
Corona Extra               Modelo                            Molson-Coors   
Molson Canadian            Molson-Coors                      Molson-Coors   
Rickard's                  Molson-Coors                      Molson-Coors   
Carling Black Label        Molson-Coors                      Molson-Coors   
Strongbow Hard Cider       Heineken N.V.                     Molson-Coors   
Social Lager (GIB)         Granville/Creemore Springs (M-C)  Molson-Coors   
Miller Genuine Draft       SABMiller                         Molson-Coors   

"If SABMiller can combine good consumer marketing with a new
distribution portfolio, they can improve on the position they had
with Molson Coors," said Ellis. "AB Inbev and Molson Coors have built
beautiful brand portfolios in Canada. But with 9 of the Top 25 brands
coming from outside these two Goliaths, there is an opening to
coalesce a strong third beer distributor there. The on-premise
channel has long been the brewer's platform for consumer trial and
adoption, and will fuel overall growth." 
About Restaurant Sciences
 Restaurant Sciences is the premier
provider of syndicated data and insights on food and beverage
consumption in restaurants, bars, nightclubs and other foodservice
establishments. The company delivers market share, market basket,
competitive analysis, pricing, promotional, trend, segmentation and
custom analytics to food and beverage manufacturers and distributors,
as well as the broader industry they serve. Restaurant Sciences
transforms over $1 Billion per month in guest check-level sales
information into detailed data and insights across all segments of
the foodservice landscape in the United States and Canada. Insights
are delivered online through their business intelligence tool or
through custom analytics. Visit 
Marianne Sabella Dempsey
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