Molson coors

Countries around the world has indeed shied away from its isolationist tendencies and has embraced wholeheartedly the precepts of globalization, chinaware is not a stranger to this phenomenon. With over a billion people, it has in some manner developed into a lucrative market for investment. Owing to its potential, china is considered as the largest beer market in the world.Breweries worldwide are vying to be part of this huge market, and Molson Coors is in a position to be a major player. But caution is expressed because China is a complex market and product demand would take off from region to region. So if the desire of Molson Coors is to saturate the market in a nationwide level, then they need to be extra judicious in their selling thrusts.Part of the governments protectionist measures is to allow foreign investors to have a manufacturing and marketing agreement with a local counterpart. In so doing, products could reach consumers in all levels of Chinese society. In line w ith this policy, Molson Coors in August 2001 formed the subsidiary Coors Beer Beverages (Suzhou) Co.,Ltd., the purpose being to distribute Coors Beer products into China. A brewing agreement has in any case been inked with Lion Nathan Beer and Beverages (Suzhou) Co. Ltd. in October 2001.ThreatsAs in all potential markets there will always be threats as interested investors and companies jockey for position and shell out in the manufacturing and beer distribution business. And since the market is still young and so huge, there will always be room for everybody. Depending on each companys strategy, the one that can provide consumers the most value for their money will get the lions share of the market.Competition has started to manifest its ugly send as major players in the beer market are now poised to increase their market share. Recently though more breweries are coming into China (50 are reported recently). This is in addition to Budweiser, the current market leader Carlsberg Anheuser-Buschs SABMiller Harbin Brewery and Scottish & Newcastle.Even with the frantic activity now experienced in China, the local beer market remains to be controlled by domestic players. This makes it a fragmented market and totally needs infusion of massive international capital of the United States which could come in the form of joint venture agreements. As a form of encouragement, Chinas per capita beer consumption remains to be low inwardness the market has still so much room for development.ReferencesBear in China 2006 A Market Analysis. Research and Markets. December 2006. Research and Markets. 24 February 2008. .Chinas Beer Market Still Room for Investment. AP-Foodtechnology. 6 August 2004. Decision News Media SAS. 24 February 2008. .SABMiller top China beer seller.BBC News UK. 6 October 2006. BBC. 24 February 2008. .Edgar Online Inc. 11 March 2005. Edgar Online, Inc. 24 February 2008. .