In 1985, the traditional brewer, Coors, made a breakthrough in his business. We can call it a breakthrough due to several indicators:
1- They made their highest sale 14.5 million barrels with a jump by %13 and the revenues from beer business had tapped $1 billion – for the 1st time in the company’s history.
2- They recorded this outstanding sale amount in a very unsuitable environment: the beer consumption from 1980 to 1985 was very stagnant.
3- Their new brand Coors light, became the top selling brand in the light beer market.
This jump in 1985 could be explained by the Renewable Advantage model. We can state confidently that the achievement in 1985 is a result of a Renewal Process which dates back to 1975, and the first big fruits were reached in 1985 by this process.
As a bit of background I would like to summarize the brewery business of in the states and the necessary core competencies:
The beer market in the USA could be classified as a standard cycle market (even may be a slowish standard cycle industry) The main focus had traditionally been given to scale orchestration, which includes good brand name, good taste and availability when seeked. These require strong production, marketing and distribution skills ; and the brewers strong in these skills succeed. In years, we can see the market fluctuate, for example between 1945 to 1960 and between 1980 to 1985, the market was stagnant. Nevertheless, it showed a rapidly inclining consumption pattern in years except the mentioned periods.
In this environment Coors captured a strong position and became a major player. The main milestones of the company are as the following:
• First brewery founded in Golden , Colorado in 1873 by Adolph Coors
• There was Prohibition but the company got through by making near beer, malted milk, cement and porcelain.
• in 1929 A. Coors Jr. Took over 1933 Prohibition was repealed
• 1933 Coors sol 90 000 barrels of beer, selling in Colorado & Arizona
• Then expanded...