Adolph Coors is a successful regional brewer who went national in the 1970s after many years of selling only to the western United States. Based in Golden, Colorado, the company was family owned and operated, and had been for more than four generations. The company touted its beer as being brewed from "Rocky Mountain Spring Water," which was supposed to improve its flavor relative to other beers, and Coors also refrained from pasteurizing its product.
This lack of pasteurization led to some problems for the company since it increased transportation costs and made it necessary for wholesalers and retailers to destroy Coors products which were older than 60 days.
In recent years, however, the company has experienced a significant increase in consumption of its products, and it has expanded to a nationwide system of distribution. Its transportation costs have risen considerably as a result and the company is now in the process of opening a facility in North Carolina which will help it reduce transportation costs for products shipped to the east. In addition, the company has signed brewing agreements and import agreements with a number of different companies giving it access to the Canadian market and increasing the number of products associated with Coors from one to more than 300. The company has also had strong success with its "lite" brand.
The problem that faces Coors is how to maintain its profitability while expanding its marketing. In addition, the company, which is family owned, also has an interest in maintaining control of the business in the hands of the Coors family. This, to some degree, may put the needs of the company as a whole against the needs of the stockholders, with the result that the company may be opening itself up to litigation if it is perceived that the cross-interests are resolved in favor of maintaining control rather than in favor of maximizing stockholder benefit.
The brewing industry is d...