Class Project: Commodity Marketing of Coors Light Beer

The paper is the report from a class commodity marketing project, the purpose of which was to develop a sourcing strategy for a commodity, Coors Light Beer, for the buying firm, Fumbles Sports Bar.

The paper presents a detailed summary of Coors Beer. The group concludes that the existence of a monopolistic market limits the options available to improve sourcing of Coors Light for Fumbles; therefore, Fumbles should increase the contract length with Pierce Distribution, decrease the amount of competitors’ kegs purchased and combine purchasing of Coors Light with other local bar. The paper includes four graphs and tables.

Table of Contents
Executive Summary
Business Unit and Sourcing Strategies
Cost/Price Reduction
Quality Improvement
Delivery Improvement
Buying Firm: Internal Information
Usage/ Price
Volume Requirements
External Market
Brewing Company
Manufacturing Process
Component Raw Materials
Primary and Secondary Uses
Possible Substitutable Products
Cost Structure/ Trends
Pricing Method and Trends
Technology Trends
Identification of Key Suppliers in the Industry
Type and Level of Competition
Identification of Major Buyers within the Industry
Competing Demand
Supply Origins
Supplier Specific Information
Financial Overview
Supplier Size
Market Shares
Cost & Resource Saving Strategies
Supply Chain Strategies
The primary brewing and packaging facility for Coors, though, is in Golden, Colorado, with a supporting production plant in Memphis, Tennessee. The other packaging plant that Coors operates is in Shenandoah Valley near the town of Elkton, Virginia. Golden, Colorado is essential to Coors Light because of the supply of fresh water provided at the site, which is a main ingredient in the beer. This significant factor is also used as a marketing tool to emphasize their beer’s quality. In fact, the main reason for each plant’s location is the high-quality water. Golden, Colorado is also the original location that Adolph Coors, the founder of the Coors Company, who founded the beer headquarters in 1873. It is now the largest brewery in the world.