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Coor Distributor Case

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Submitted By luluwang1127
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MBA5240
Coors Distributor Case
September 10, 2013

Prior to presenting our POV on whether or not Larry should proceed with the purchase of the Coors distributorship in Delaware we’d like to note the following assumptions: * The $500k will be enough to actually purchase the distribution rights and fund any necessary start-up costs * After a year or two Coors can achieve the relatively same market share in DE that it has nationwide (8.9%) * While seen as a more premium and better tasting beer than segment leader Budweiser, Coors will need to enter the market at a comparable price to Budweiser (at par or a little higher than). For the sake of this case we assumed a similar price for wholesale distribution of $3.29, which could potentially be increased to better match the brands perception as a more premium offering. However, to enter this mature market pricing against the segment leader is our strategy.

Leveraging the data provided, we determined the following details regarding the state of the DE beer industry along with the potential of Coors within their territory:

DE Population 21+ (1990) | | Kent | 75,200 | | | Sussex | 85,300 | | | TOTAL | 160,500 | | | | | | | Delaware Consumption 21+ (1990) | | | 39.40 | gallons per year | | | 6,323,700 | Total annual beer consumption (gallons) | | | | | | Overall Beer Industry Details | | | 809,433,600.00 | ounces of beer per year | | | 67,452,800 | cans of beer per year | | | 11,242,133 | six packs of beer per year | | | | | | | Coors Details | | |

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