October 30, 2006

Coors Business Remains a Family Affair After 135 Years

When Peter Coors graduated from college he thought he could conquer the world. Instead, he ended up working as a trainee in the waste treatment plant of his family’s brewing company.

“It taught me that every job is important,” Coors, chairman of Coors Brewing Co. and vice chairman of Molson Coors Brewing Co., told a standing-room-only audience at his Oct. 26 VIP Distinguished Speaker Series talk.

Started 135 years ago by Coors’ great-grandfather, Adolph Coors, the company has grown from a small business built on 11 acres of land in Colorado to the third largest brewer in the United States. Despite this rapid growth, the company remains a family endeavor.

With 160 direct decedents of Adolph Coors, it seems intuitive to think that many family members would hold high positions in the company. But Coors said family members must earn their positions by having at least two years of relevant experience with another company before they can work for Coors.

“Having the name Coors is not an automatic ‘in’ to top management,” Coors said.

Leading a Multi-generational Company

Coors acknowledges that it takes constant innovations and improvements within his family business to stay abreast of the competition.

“As a good friend used to tell me: Today a peacock, tomorrow a feather duster,” he recalled.

In a mature industry with little growth, Coors’ challenge is to steal market share from competitors, but this is much easier said than done.

“I don’t want to just throw a bunch of things against the wall and see if one sticks,” Coors said.

Using the trial and error process would cause Coors to lose its core brand. Rather than risking this loss, Coors has used technological innovations to improve its core brand through its introduction of the first two-piece aluminum beverage can, an improved fermentation process and innovative packaging, such as its plastic bottle cooler box.

Keeping it in the Family

In a company comprised largely of family members, there will always be some arguments about how to run the business. Resolving such disagreements requires cooperation, says Coors.

“It’s not about slicing the pie—it’s about making the pie bigger so we each get a bigger slice. You have to grow the business faster than the family grows.”

The inheritance tax is another challenge faced by family businesses.

“I call it the death tax,” Coors said, adding that his grandfather asked all of his siblings to put their shares in a family trust to avoid the tax. “People who have the creativity and ingenuity to build a business know better how to handle the business than our federal government.”

While Coors admits that passing along family involvement in a business is becoming more difficult, he hopes that the Coors family legacy will follow the company for many generations.

“If we can’t have a family member rise up to top management, I at least hope our influence will remain.”

Notable Soundbites

On career paths:
“The first job you get won’t be the job you think you are qualified for.”

On success:
“You can iron all day long, but there is always going to be a wrinkle.”

“Life is short – if you get in a situation you don’t like, change it.”
“If you are going to screw up make sure you are going full speed.”