Formed by the merger of the Coors Brewing Company and the Molson Company in 2005, the Molson Coors Brewing Company is the fifth largest brewer in the world by production volume. The company brews and sells 40 different beer products, in addition to selling beer via partnerships with companies like Heineken and Corona. In FY 2009, the company generated $3.03 billion in revenue.^[1] Coors thrives particularly in Canada, where it commands over 41% of the market, largely through its sales of flagship brands Coors, Coors Light, and Molson. As premium beers, these brands are sold in a worldwide market characterized largely by the category's maturity and slow growth. In July 2008, Molson and SABMiller combined their US operations in a joint venture. The new venture, MillerCoors, produces approximately 50 million hectoliters, making it a formidable, albeit smaller competitor to U.S. market leader Anheuser-Busch (which sold 134 million hectoliters in 2009).^[2][3] The company also competes in the alcoholic beverage market at large, which includes beer, wine, and other spirits. As the company does not have any significant presence in the wine and spirits segment, a faster growing portion of the industry, Molson Coors must seek growth in Emerging Markets and through partnerships and acquisitions. In 2010 alone, the company has expanded to Russia, Vietnam and entered a partnership with the Si'hai Beer Company in China.

Molson Coors is highly exposed to raw materials costs. Prices for the most important input materials, aluminum, barley, and grain fluctuate widely. For example, aluminum prices have fallen more than 40% from their 2008 highs of $1.50/pound to approximately $1.10/pound.^[4] Since September 2009, barley prices have increased more than 50% to $161/ton in August 2010.^[5]

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