Molson Coors: Increasing Market Share and Dividends

Last week The New York Times announced that the NHL has signed a 7 year deal with Molson Coors Brewing Company (TAP) worth $400 million. This will put increased pressure on Anheuser-Busch InBev (BUD) who previously held the deal for less than half the price, but retains the rights to the NFL and MLB. However, an executive from Molson Coors insists they have data that shows that hockey fans drink more beer than any other professional sports league. Now I’m not sure if I believe their statistics regarding hockey fan beer consumption, but as a die-hard fan speaking from observation I would think that its generally correct. Beer tends to be very inelastic in terms of price, in that demand remains relatively constant as prices rise. Evidence of this can be found by standing in the long beer lines at the Prudential Center where the New Jersey Devils, and where... Read more

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