NEWS
Learn from the best; Part two of our Top 10 looks at the lessons of Molson, Irving, Bombardier, Argus and Imperial Oil
By Andy Holloway, December 8, 2003
Molson has emerged from its roots as a nation-builder to become a marketing powerhouse. With its brilliant ads and savvy alliances, it never let Canadians forget that it's master of the brand.
There's just no getting around the fact that Molson and beer are virtually synonymous in Canada. That Molson for its first 100 years also had a massive hand in building this nation--operating the first steamship service, investing in the first railway, building Montreal's first public hospital, even running a bank--is certainly notable. That the company is the second-oldest in Canada and has been in the Molson family since its founding in 1786 is more than enough to justify its position as one of Canada's Top 10 companies. And being the world's 13th-largest brewery gives it a certain international cachet. But more than anything, what allows the 217-year-old company to rise above the foam is that Canadians recognize the Molson name as something more than just beer--it's become part of our collective consciousness.
Molson (TSX: MOL) likes to believe that's because the heritage of the company is a living one--not surprising since seven generations of Molsons have controlled the company (especially impressive given that most family-run enterprises can't make it past three generations). It's certainly not the beer itself, which is unremarkable and largely indistinguishable from arch rival Labatt's products, even to beer experts. Beer pricing is provincially regulated, so there's little Molson can do to separate itself there. What really sets it apart is simple: branding. Molson is arguably the most recognized brand in Canada (and the oldest beer brand in North America), and has been synonymous with domestic beer since the launch of Molson Canadian in 1959. Part of that is the company's savvy alliance with hockey. But it's also been driven home by brilliant marketing campaigns, most recently the "I am Canadian" ads. That the "I am" spots followed up and expanded on the successful "What beer's all about" advertisements of the late 1980s shows it wasn't a fluke, either.
Molson's status as a marketing phenomenon is relatively recent. But make no mistake: its history is a rich one, particularly in Montreal. Molson issued its own banknotes and operated a bank there for 70 years, which later merged with Bank of Montreal. It ran Canada's largest distillery, in Montreal, for 46 years and had a lock on the city's beer market. The Molson name then, as now, carries a lot of hop in Montreal. Aside from performing various civic duties, the Molsons also owned hockey's most storied and successful franchise, the Montreal Canadiens. Senator Hartland de Montarville Molson and Thomas Pentland Molson initially bought the team and the Forum in 1957, but sold both in 1971. Seven years later, the company took over the Habs (Molson still has a 20% stake in the team). During most of that period, Molson sponsored Hockey Night in Canada, on CBC, associating the brewer with Canada's favourite sport.
Gradually, Molson has shed itself of all non-beer assets (it sold off stakes in Beaver Lumber, chemical giant Diversey and R no-D p t in the 1990s). Today, beer is Molson's only business, with annual revenue of $3.5 billion and a 45% share of the Canadian market--just ahead of Labatt, which is now owned by Belgian beer giant Interbrew. "Brands drive the success of any company," says Marie Germain, a brand strategist in Brighton, Ont. "Without the brand living in the customer's mind, a company doesn't have any strengths. Molson has a strong brand." It has captured--or defined--the essence of what it means to be Canadian, something Germain says the Bay has tapped into a bit and Roots almost had before going Hollywood.
By 1988, when Molson stopped sponsoring Hockey Night in Canada, the company couldn't just rely on its heritage to maintain sales. Labatt, as always, was ready to resume its position as Canada's top beer producer; dozens of smaller brewers had begun producing tastier beers, something that hadn't been part of the industry since the early 1930s. And Canadians were getting greater access to imported beers than ever before. Broader marketing campaigns were needed, and Molson stepped up. Tapping into Canada's unexplored sense of patriotism with the "I am" campaign was a good first step. Now Molson needs to build on that, not just for its own sake but a little bit for ours. "We really need to be proud to be Canadian," says Germain, "And Molson has helped us." By Andy Holloway
© 2003 Rogers Media Inc.
Learn from the best; Part two of our Top 10 looks at the lessons of Molson, Irving, Bombardier, Argus and Imperial Oil
By Andy Holloway, December 8, 2003
Molson has emerged from its roots as a nation-builder to become a marketing powerhouse. With its brilliant ads and savvy alliances, it never let Canadians forget that it's master of the brand.
There's just no getting around the fact that Molson and beer are virtually synonymous in Canada. That Molson for its first 100 years also had a massive hand in building this nation--operating the first steamship service, investing in the first railway, building Montreal's first public hospital, even running a bank--is certainly notable. That the company is the second-oldest in Canada and has been in the Molson family since its founding in 1786 is more than enough to justify its position as one of Canada's Top 10 companies. And being the world's 13th-largest brewery gives it a certain international cachet. But more than anything, what allows the 217-year-old company to rise above the foam is that Canadians recognize the Molson name as something more than just beer--it's become part of our collective consciousness.
Molson (TSX: MOL) likes to believe that's because the heritage of the company is a living one--not surprising since seven generations of Molsons have controlled the company (especially impressive given that most family-run enterprises can't make it past three generations). It's certainly not the beer itself, which is unremarkable and largely indistinguishable from arch rival Labatt's products, even to beer experts. Beer pricing is provincially regulated, so there's little Molson can do to separate itself there. What really sets it apart is simple: branding. Molson is arguably the most recognized brand in Canada (and the oldest beer brand in North America), and has been synonymous with domestic beer since the launch of Molson Canadian in 1959. Part of that is the company's savvy alliance with hockey. But it's also been driven home by brilliant marketing campaigns, most recently the "I am Canadian" ads. That the "I am" spots followed up and expanded on the successful "What beer's all about" advertisements of the late 1980s shows it wasn't a fluke, either.
Molson's status as a marketing phenomenon is relatively recent. But make no mistake: its history is a rich one, particularly in Montreal. Molson issued its own banknotes and operated a bank there for 70 years, which later merged with Bank of Montreal. It ran Canada's largest distillery, in Montreal, for 46 years and had a lock on the city's beer market. The Molson name then, as now, carries a lot of hop in Montreal. Aside from performing various civic duties, the Molsons also owned hockey's most storied and successful franchise, the Montreal Canadiens. Senator Hartland de Montarville Molson and Thomas Pentland Molson initially bought the team and the Forum in 1957, but sold both in 1971. Seven years later, the company took over the Habs (Molson still has a 20% stake in the team). During most of that period, Molson sponsored Hockey Night in Canada, on CBC, associating the brewer with Canada's favourite sport.
Gradually, Molson has shed itself of all non-beer assets (it sold off stakes in Beaver Lumber, chemical giant Diversey and R no-D p t in the 1990s). Today, beer is Molson's only business, with annual revenue of $3.5 billion and a 45% share of the Canadian market--just ahead of Labatt, which is now owned by Belgian beer giant Interbrew. "Brands drive the success of any company," says Marie Germain, a brand strategist in Brighton, Ont. "Without the brand living in the customer's mind, a company doesn't have any strengths. Molson has a strong brand." It has captured--or defined--the essence of what it means to be Canadian, something Germain says the Bay has tapped into a bit and Roots almost had before going Hollywood.
By 1988, when Molson stopped sponsoring Hockey Night in Canada, the company couldn't just rely on its heritage to maintain sales. Labatt, as always, was ready to resume its position as Canada's top beer producer; dozens of smaller brewers had begun producing tastier beers, something that hadn't been part of the industry since the early 1930s. And Canadians were getting greater access to imported beers than ever before. Broader marketing campaigns were needed, and Molson stepped up. Tapping into Canada's unexplored sense of patriotism with the "I am" campaign was a good first step. Now Molson needs to build on that, not just for its own sake but a little bit for ours. "We really need to be proud to be Canadian," says Germain, "And Molson has helped us." By Andy Holloway
© 2003 Rogers Media Inc.
