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A New Frontier of Beer
Developing a winning portfolio strategy for Molson
Situation: Molson Coors had a house of great brands playing in the same space. By targeting the same person – young males ready for a party – the company was cannibalizing sales and stunting its growth potential. Molson partnered with Sklar Wilton and together they embarked on a journey to explore a new frontier of beer.
Insight: Sklar Wilton worked with Molson’s senior marketing team to co-create the process and model for insight discovery. Together, they discovered the world of beer wasn’t flat – it was bigger and filled with opportunity. How so?
- The consumer is older. There is a lot of beer volume outside of Young Males.
- The competition is broader. Beer drinkers drink beer. But they also drink wine and spirits.
- The world is bigger. The party occasion only represents about 5% of beer consumption.
Indeed, there was enough space in the market for each brand to have a distinct role – not by gender or age, but by occasion.
Impact: At a market level, the segmentation unlocked new portfolio opportunities with sustainable growth, like Molson Canadian 67 which targets wine or spirits drinkers with a lower calorie option. Internally, the study developed a clear language for how the organization should talk about and view the market – a language that is still being used today. In fact, the study – viewed as best in class across all divisions – is being replicated by Molson Coors International.
The work was brilliant. I came away energized and excited. Nice to see Molson brand (and total company) growing both volume and share…best quarter in at least 10 years. The work you are doing is making a huge difference.
– Peter Nowlan, Chief Marketing Officer, Molson Coors