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“OUR BEER PRINT”: BREWING CORPORATE RESPONSIBILITY AT MOLSON COORS

Dr. Chitra P. Reddin wrote this case under the supervision of Professor Mary Weil solely to provide material for class discussion. The authors do not intend to illustrate either effective or ineffective handling of a managerial situation. The authors may have disguised certain names and other identifying information to protect confidentiality. This publication may not be transmitted, photocopied, digitized or otherwise reproduced in any form or by any means without the permission of the copyright holder. Reproduction of this material is not covered under authorization by any reproduction rights organization. To order copies or request permission to reproduce materials, contact Ivey Publishing, Ivey Business School, Western University, London, Ontario, Canada, N6G 0N1; (t) 519.661.3208; (e) [email protected]; www.iveycases.com. Copyright © 2013, Richard Ivey School of Business Foundation

Version: 2013-11-19

On January 25, 2013, Bart Alexander, chief corporate responsibility officer for Molson Coors Brewing Company (Molson Coors), a leading global brewing company, returned to his office in Denver, Colorado, from Miami, Florida, after a week-long conference of the company’s global leadership team (GLT), 125 executives and their direct reports. He was awed, excited and a little overwhelmed. The GLT had just committed to a 2015 BHAG (Big Hairy Audacious Goal), which was key to the company’s future. He and his team would play a pivotal role in focusing Molson Coors’ global corporate responsibility to drive the company’s global competitiveness. “Wow!” he thought, “This new BHAG has just been rolled out. How do I get sales and marketing engaged to make it real?”

THE COMPANY

In 2005, Canada’s largest brewing company, Molson Inc., merged with the third largest U.S. brewing company, Coors Brewing Co., to form Molson Coors Brewing Company. In 2013, Molson Coors, with its 42 per cent interest in Miller Coors, operated in North America, the United Kingdom and Ireland, Central Europe and Asia. Molson Coors had grown through mergers of brewing companies in the United States, the United Kingdom, Canada and Central Europe, each of which had traditions of community involvement, environmental stewardship and alcohol responsibility. Ranked number five in global beer rankings (by profit) in 2013, Molson Coors aimed to become one of the top four global brewing companies by 2015. With nearly 20,000 employees, Molson Coors operated 31 breweries in 50 countries. Its mission was “delighting the world’s beer drinkers” 1 with 100 brands, including Coors Light, Molson Canadian, Miller Lite, Carling and Staropramen, in addition to such craft and specialty beers as Blue Moon, Cobra and Creemore Springs. Its major competitors were Ansheuser-Busch InBev, SABMiller, Heineken and Carlsberg. Molson Coors was listed on the New York Stock Exchange with a market capitalization of approximately $9.11 billion. 2 1

Molson Coors website, “About Us” www.molsoncoors.com/en/About%20Us/Our%20Markets/Molson%20Coors% 20Canada.aspx, accessed August 6, 2013 2 All currency amounts are shown in U.S. dollars unless stated otherwise.

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According to a Transparency Market Research report based on 2012 data: The global beer market was valued at USD 104,978.3 million in 2010 and is expected to reach USD 137,458.9 million in 2015 with a CAGR [Compound Annual Growth Rate] of 6.3% during the 2010–2015 periods. This market has registered a mature and moderate growth rate in Europe and the US market. But the growth is average in other countries like China, Thailand, Nigeria and India. Some of the major challenges faced by this market is the increasing consumption of wine, spirits and other alcoholic drinks. Europe holds the largest market share in the beer industry and is continually growing.3 Three major global brewers, Miller, Anheuser-Busch and Molson Coors, generated about 90 percent of the profit in the beer market in 2012. In 2013 Q2, Molson Coors realized a $276.7 million4 profit from continuing operations, nimbly beating analysts’ estimates, as the company saw fewer acquisition-related items and higher sales volumes than compared with the same quarter in 2012. 5 Molson Coors 2013 Q2 highlights included the following: 6 • Worldwide beer volume: 16.7 million hectoliters, increased 20.2 per cent • Net sales: $1.18 billion, increased 17.9 per cent • Underlying after-tax income: $278.6 million, increased 11.4 per cent ($1.51 per diluted share) • Net income from continuing operations attributable to Molson Coors Brewing Co.: $276.7 million, increased 165.3 per cent ($1.50 diluted share) In 2012, the company expanded operations by acquiring StarBev in Europe, which had brewing operations in the Czech Republic, Serbia, Croatia, Romania, Bulgaria, Hungary, Montenegro and also sold its brands in Bosnia-Herzegovina and Slovakia. A global company with 350 years of history and a growth focus, Molson Coors wanted to be recognized worldwide, both for doing well and doing good. Making corporate responsibility (CR) part of its global identity in every geographic location had become key to Molson Coors’ strategy since 2008, when it issued its first CR report. But along the CR journey, the company had experienced both bumps and milestones. Some friction was not surprising, since the concept of corporate responsibility was still evolving, as were the global frameworks and agreements regarding corporate responsibility. CR was a broad term that encompasses a plethora of issues: environment, community, workplace, governance, human rights, safety, consumerism, transparency, accountability, bribery, corruption and more. Compliance with the terms of CR was also largely voluntary, unlegislated and variously defined: Harvard University suggested: We define corporate social responsibility strategically. Corporate social responsibility encompasses not only what companies do with their profits, but also how they make them. It goes beyond philanthropy and compliance and addresses how companies manage their economic, 3

Transparency Market Research, “Beer Market – Global Industry Size, Share, Trends, Analysis and Forecasts, 2012–2018” www.transparencymarketresearch.com/beer-market.html, accessed August 6, 2013. 4 All figures in U.S. dollars unless otherwise indicated 5 “Molson Coors Beats Profit Expectations on Back of European Expansion,”www.thestar.com/business/2013/08/06/molson _coors_beats_profit_expectations_on_back_of_european_expansion.html, accessed August 7, 2013. 6 www.molsoncoors.com/en/Media/~/media/Molson%20US/en/PDFs/Corporate/News/TAP%20Earnings%20Release %202013Q3%20FINAL.ashx, accessed Nov 8, 2013

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social, and environmental impacts, as well as their relationships in all key spheres of influence: the workplace, the marketplace, the supply chain, the community, and the public policy realm. 7 Business for Social Responsibility defined it as follows: A sustainable business is one that delivers value for investors, customers, and employees; improves the living standards of its employees and the communities it touches; makes wise use of natural resources; and treats people fairly. 8 The World Business Council for Sustainable Development used the following description: To start with, in the long run, business cannot succeed in societies that fail and therefore has a vested interest in stable and prosperous societies. By developing a better understanding of and proactively addressing socio-economic and environmental concerns, companies will be able to better manage their risks and thereby underpin their license to operate, innovate and grow. 9 CSR expert and management consultant, Mallen Baker, described CSR as “about how companies manage the business processes to produce an overall positive impact on society.” 10 Who cares about corporate responsibility? Not just consumers but also employees, investors, communities, governments, media, nongovernmental organizations (NGOs), environmentalists, regulators, financial analysts, suppliers and more. To determine whether an organization demonstrates corporate responsibility, global organizations applied standards, measures, best practices and frameworks: the United Nations Global Compact, the Global Reporting Initiative, ISO 26000, (the standard of social responsibility), AA1000, the Organisation for Economic Co-operation and Development (OECD) and Certification of Environmental Standards (CERES) guidelines and others in the works. Increasingly, people worldwide expected corporations to be accountable and transparent, to integrate people, planet and profits. On November 13 and 14, 2012, 500 representatives from business, academe, governments, trade unions and NGOs from more than 50 countries and all parts of the world convened in Oslo, Norway, to discuss future CR challenges and opportunities. They concluded that although CR had made a difference in how business operates, much work still needed to be done, noting that CR “will increasingly become “a competitive factor for business.” 11 Mallen Baker’s chart (see Exhibit 1) shows the vital impact and interactions of a business and its key stakeholders.

7 Harvard University, “The Initiative: Defining Corporate Social Responsibility,” www.hks.harvard.edu/mrcbg/CSRI/init_define.html, accessed August 6, 2013. 8 Business for Social Responsibility, “BSR and the State of CSR: What We Mean When We Say ‘CSR,’” www.bsr.org/en/our-insights/bsr-insight-article/bsr-and-the-state-of-csr-what-we-mean-when-we-say-csr, accessed August 6, 2013. 9 World Business Council for Sustainable Development, “How Can Business Contribute to Development?” www.wbcsd.org/newsroom/faq.aspx#f12, accessed August 6, 2013. 10 Mallen Baker, “Corporate Social Responsibility – What Does It Mean?” www.mallenbaker.net/csr/definition.php, accessed August 6, 2013. 11 “The Oslo Conference on Corporate Social Responsibility,” www.regjeringen.no/upload/UD/Vedlegg/csr/csrkonf_slutt121 114.pdf, accessed August 6, 2013.

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A change in attitude was already happening in terms of how business was done, which was evident from the 2012 Edelman goodpurpose global study of consumer attitudes among 8,000 adults in 16 countries. In 2012, the study found that 76 per cent of consumers believed brands should marry profit with purpose. Edelman’s goodpurpose global research across five years led to the following key learnings: 1. 2. 3. 4. 5.

Purpose is the key driver in re-engineering brand marketing. Purpose is the definitive purchase trigger. Largest growth markets are bullish on purpose. Operational excellence and societal performance are rewarded. Corporations earn licence to lead via purpose. 12

In 2012, in Molson Coors’ key beer markets, 89 per cent of consumers in Canada, 86 per cent in the United States and 84 per cent in the United Kingdom believed corporations should place equal weight on business and society in their operations.

Molson Coors: The Corporate Responsibility Journey

The founding companies that became Molson Coors in Canada, the United States and Europe had longstanding traditions of doing business the right way: Whether you start counting in 1744 with William Worthington in England, or in 1786 with John Molson in Canada, or even with the youngest of our founders, Adolph Coors in 1873 — you arrive at the same conclusion. We know a thing or two about crafting quality beers and running an enduring business with integrity, authenticity and corporate accountability right from the start 13 Molson Coors, the new global company formed in 2005, needed to define itself and how it would do business. The company forged a culture of “Our Brew.” “We don’t talk about our ‘mission,’” says president and chief executive officer (CEO) Peter Swinburn. “We talk about ‘what we will do.’ When there’s a problem, employees ‘Decide and Do’; they don’t ‘Analyze to Death.’” 14 Our Brew a 38-page guide put the company’s strategies and goals into clear pub talk and empowered employees to challenge the expected, to focus on action and to engage to delight the world’s beer drinkers. 15 Bart Alexander, a former Coors employee who joined the Molson Coors during the merger, was a passionate champion of corporate responsibility. In 2005, under the leadership of Chairman Eric Molson and CEO Leo Kiely, Molson Coors was already doing many of the right things. Corporate responsibility

12

The 2012 Edelman goodpurpose® study was the firm’s fifth annual global consumer study to explore consumer attitudes toward social purpose, including their commitment to specific societal issues and their expectations of brands and corporations. The survey was conducted by StrategyOne in January and February of 2012 and consisted of online interviews in 16 countries among 8,000 adults. Five hundred respondents were surveyed in each of the following markets: Belgium, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Malaysia, the Netherlands, Singapore, the United Arab Emirates, the United Kingdom and the United States. The margin of error was +/-1.1 per cent for the full global sample; +/-1.4 per cent for the global tracking sample; and +/-4.4 per cent for each country’s sample. For more information, visit www.purpose.edelman.com. 13 “How We Work,” www.molsoncoors.com/en/Responsibility/How%20We%20Work.aspx, accessed August 6, 2013. 14 “New Brew: Molson Coors CEO Peter Swinburn,” www.whatifinnovation.com/greenhouse/new-brew, accessed August 6, 2013. 15 Ibid.

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was one of the four planks of the 2008–2012 strategic plan. The company focused on the basics and got them right. Its CR priorities were clearly set out: • • • • •

Governance and Ethics Alcohol Responsibility Environmental Stewardship Employees and Community Responsible Sourcing

Molson Coors first engaged Future 500 to help benchmark its policies and performance against global standards. Then, in 2010, it commissioned consulting firm Corporate Citizenship to survey internal and external stakeholders on what mattered to them. Alexander was convinced that to be effective and credible, Molson Coors needed to make CR not an add-on or a stand-alone program, but the focus of how Molson Coors did business. He found it to be a tough sell to get some leaders to understand the breadth of the challenge. Molson Coors had set a 2008 BHAG to be recognized for world-class corporate responsibility by 2012. The measures would be listing on the Dow Jones Global Sustainability Index and widespread employee understanding and support measured through employee engagement surveys. But Molson Coors executives asked Alexander whether it would simply be enough to do one or two things really well. “Yes,” replied Alexander, “And a lot of companies do that. There’s even a term for it — greenwashing.” Yet eyes still glazed over when he made presentations about the range of CR activities within the company. He realized CR’s sophisticated frameworks, complex information and detailed global standards precluded communicating a clear and compelling vision of CR inside Molson Coors. How could he make CR relevant to business leaders and employees across cultures and geographies? To reach a solution, at the end of 2010, he convened a two-day meeting in Toronto that included a crosssection of employees across Molson Coors, from public affairs, finance, strategy, sales and other areas.

Enter “Our Beer Print”

At the meeting in Denver, Colorado, U.K. corporate responsibility business partner Debbie Read (currently, corporate responsibility manager) suggested the idea of the Molson Coors “beer print”: Just as a cold beer leaves its imprint on a table, we make an impact, for better or worse, on people, communities and the environment wherever we operate and sell our beer. Let’s make sure we grow our positive beer print and shrink our negative one. That’s what CR is at Molson Coors. It’s part of everything we do and are. Our beer print is the way we do business. First, the group thought her idea was too simple and preferred the theme of “Connecting for Good.” But to Alexander’s surprise and pleasure, the beer print caught on fast at the company. It became instantly clear shorthand for CR at Molson Coors, an “Aha!” moment. Executives saw its business relevance. Employees embraced it. “Our Beer Print” became the unifying concept for corporate responsibility at Molson Coors. In 2011, it was rolled out worldwide and connected the Molson Coors’ culture “Our Brew” to its CR strategy “Our Beer Print.” The aim was to show internal leaders and employees globally how CR helps sell more beer and make CR “the way we do business.” At its heart was a guide for employee decision making: The Simple Story of Our Beer Print: Every time you pick up a beer you leave a beer print behind. And wherever we brew and sell our beer we leave a beer print on our people, our communities and the earth. At Molson Coors we

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want to Grow our positive Beer Print and Shrink our negative Beer Print. This helps drive purchasing decisions, our other BHAGs, community partnerships, employee engagement, supplier relationships and profit. It drives our business! We want to be recognized externally and internally. To become world class we get the basics right and then, like any good brand, we set ourselves apart. We can’t do this without you. Look for ways you and your team can help increase/decrease Our Beer Print. 16 This notion of the beer print was communicated in many ways across Molson Coors’ global operations: through a dedicated webpage (see Exhibit 2), a blog (see Exhibit 3), town hall meetings, videos, conferences, special events, Yammer, email, employee activities, Molson Coors Canada TV, signage, screen savers and coasters. “Our Beer Print” communications were rolled out throughout 2011. Making communications interactive, engaging and highly personal contributed to the success of the promotion. Employees wrote on beer coasters the three things they would do to increase the company’s positive beer print and shrink its negative beer print. Employee achievements as a result of this exercise were widely communicated and celebrated throughout the year and company-wide. The success of “Our Beer Print” communications were measured through Molson Coors’ annual People Surveys. The 2011 People Survey results showed an astounding 85 per cent employee engagement score, with CR commitment and performance rated at almost 90 per cent and among the top-three drivers of engagement. This level of employee engagement was well above global scores in large, high-performing global companies. The Towers Watson 2012 Global Workforce Study of 32,000 employees in 29 countries, including most of the ones in which Molson Coors operates, had shown an employee engagement score of 35 per cent. 17 As well, according to the 2010-2012 Gallup State of the American Workplace study, “By the end of 2012, as the U.S. inched toward a modest economic recovery, only 30% of American workers were engaged, or involved in, enthusiastic about, and committed to their workplace.” 18 Employee engagement energized corporate growth and success. Gallup measured employee disengagement as lost productivity in the amount of $450 billion to $550 billion a year.

Successes and Milestones

As its 2013 “Our Beer Print” corporate responsibility report highlighted, Molson Coors had succeeded in several of its key areas of focus: Governance and Ethics, Alcohol Responsibility, Environmental Stewardship, Employees and Community and Responsible Sourcing: • • • •

16

The company was recognized in 2012 as the global beverage industry sector leader on the Dow Jones Sustainability World Index, a spot previously held by Pepsi. It won the Randstad Award for workplace excellence in 2012, determined by key drivers such as benefits, corporate culture and community involvement. Molson Coors was also recognized as one of the 100 best places to work in Canada for the third year in a row. The company established a global Diversity and Inclusion Council with a three-year strategy to increase diversity in the workplace. It surpassed its 2012 Greenhouse Gas Emissions target of 24 per cent reduction in 2010 and achieved targets of zero waste to landfill in its U.K. operations by end of 2012, but fell short of its 2012 targets of 15 per cent in energy and water reduction.

“Our Beer Print,” 2011 Communication Plan, company files. Towers Watson, 2012 Global Workforce Study, towerswatson.com/assets/pdf/2012-Towers-Watson-Global-WorkforceStudy.pdf, accessed August 6, 2013. 18 Susan Sorenson and Keri Garman, “How to Tackle U.S. Employees’ Stagnating Engagement,” June 11, 2013, businessjournal.gallup.com/content/162953/tackle-employees-stagnating-engagement.aspx, accessed August 6, 2013. 17

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Molson Coors signed CEO Global Commitments in 2012 along with 12 other leading alcohol industry leaders to address responsible marketing, underage drinking, retailer engagement and education about the dangers of drinking and driving. In 2012, it established Supplier Standards to be distributed to its suppliers in the United Kingdom, the United States and Canada in 2013 and to those in its international and Central European businesses in 2014. The standards set the company’s expectations of its suppliers for economic, social and environmental sustainability. 19

A notable achievement for the global brewer was its ability to localize global CR values. Whether it was U.K. zero waste to landfill (see Exhibit 4), rice husks as fuel in India (see Exhibit 5) or the Molson Canadian Red Leaf project (see Exhibit 6), throughout its global operations, case studies abound about how the company has engaged its leaders, employees, communities, customers and suppliers in its CR initiatives.

WHAT MAKES IT WORK?

What helped put Molson Coors’ CR program on such a strong foundation? Alexander cited several important factors.

Leadership Support

“We have a CEO who really understands that how we make money is important, and that making it responsibly and ethically is important to our people and to our customers and to beer consumers,” said Alexander. “And the whole senior team of the company is lined up around that.” Corporate responsibility performance was also included in the company’s annual and long-term planning — with regular performance reports provided to executive leaders, the corporate board and investors.

Strategic Alignment with Business Goals

Alexander described this element as positioning corporate responsibility with corporate ambitions, as characterized by what Molson Coors called BHAGs, or Big Hairy Audacious Goals. Two of those goals targeted profit and brand growth. Another involved engaging company employees, who were seen as essential to the firm’s success. Molson Coors also aimed to leverage its positive beer print to create a competitive advantage for its brands and retailers.

Measuring

Molson Coors took both internal and external measures of its sustainability performance. It surveyed its employees about whether the company was being sufficiently responsible on social, ethical and environmental issues. And, in turn, according to Alexander, employees felt more engaged with those issues. Externally, the company took pride in its place on the Dow Jones Sustainability Index and that it

19

“Molson Coors Issues ‘Our Beer Print’ – 2013 Corporate Responsibility Report,” July 23, 2013, www.businesswire.com/news/home/20130723005958/en/Molson-Coors-Issues-%E2%80%98Our-Beer-Print%E2%80%99--, accessed August 6, 2013.

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was meeting its long- and short-term targets for issues such as carbon reduction and responsible water use.

Accountability

“Accountability is really critical,” said Alexander. “We talk about both our achievements and our setbacks. So we’re accountable overall.” A prime example was the company’s corporate responsibility council, which met formally four times a year. The vice presidents were on the council, he noted, “each understand what they’re doing, but the council allows them to understand how what they’re doing impacts and aligns with their colleagues in other parts of the business.”

Seeking Outside Help

Similar to other companies dealing with tightened budgets, Molson Coors had become more selective in terms of using consultants. They were used for more specific tasks, said Alexander: like how we create the right system for holding our suppliers accountable, for their ethical and human rights and environmental performance. How do we do that? What’s the best practice in that? So what we’ve used consultant help is to improve the core business processes and embed sustainability within them.

Being Honest with Yourself

All companies experience challenges and problems, but owning up to those issues — both inside and outside the organization — underscored the company values and helped improve the situation. Alexander commented: Sure, sometimes it is a case of persuasion, with the data, outside experts and even field trips, but really, most of the team gets the importance of sustainability. They are the experts, and I learn more from them than I could ever teach.

Celebrating Successes

“We’re going to make sure the people who are responsible for [successes] across the organization got recognized for that,” said Alexander. “That can be for something like having world-class water efficiency in our Tadcaster U.K. brewery [or] being one of the best employers in Canada.” 20 For Molson Coors, its CR program had been pivotal in ramping up employee engagement, leveraging corporate growth and enhancing its global reputation. So what next?

20

Bruce Kennedy, “How Molson Coors's Tiny Team Creates Big Sustainability Impact,” October 12, 2012, www.greenbiz.com/blog/2012/09/30/molson-coors-sustainability-impact, accessed August 6, 2013.

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MARRYING PROFIT TO PURPOSE

Looking ahead to 2015, president and CEO Peter Swinburn had a new Big Hairy Audacious Goal for Molson Coors: “to improve Our Beer Print to create a competitive advantage for our brands and customers.” As chief corporate responsibility officer of the company, Bart Alexander said: As a consumer products company, we anticipate and respond to the changing attitudes and preferences of consumers. We will further succeed when we inspire consumers with our quality products produced sustainably and aligned with their social and environmental values. By building stronger partnerships with retailers to collectively advance responsibility, as well as by mobilizing consumers directly through our own efforts, improving Our Beer Print will continue to contribute to the company’s growth. 21 To engage with customers, Molson Coors has already begun to align its CR values and initiatives with its products. In 2012, the company placed Our Beer Print Commitment panels on beer packaging in the United Kingdom (see Exhibit 7) and Our Stamp of Responsibility on Canadian packaging (see Exhibit 8). But could these efforts toward CR translate into direct profitability? As early as 2009, researchers June Cotte and Remi Trudel found that consumers were willing to pay more for ethically produced goods and conversely were also willing to demand a discount from companies that didn’t follow ethical practices. 22 Recently, in his January 11, 2012 article on forbes.com Richard Levick contended: There is ample data to confirm this profit-generating potential. More than half the consumers surveyed by Havas [Media Lab] want to reward responsible companies by buying their products. 53% would even pay a 10% premium for those products. But the benefits don’t stop at the checkout line. They extend to stock value as well, as suggested by Harvard Business School data confirming that this new species of socially responsible company gets more favorable ratings from securities analysts. 23 But David Michael Jerome and Rob Kleinbaum pointed out in “seven steps to developing a profitable CSR strategy,” that measuring CSR is tougher because it’s a newer concept: Asking if there is a business value to a corporate responsibility or sustainability strategy is the wrong question. No one would ask if marketing strategy has business value; sometimes it does, sometimes it doesn’t, depending on its quality. The more relevant question is: What does your company need to do to ensure its CR strategy creates business value? That’s tougher to answer for CR because compared to marketing, CR is new and people have a poorer understanding of the issues. 24

21

“Molson Coors Issues ‘Our Beer Print’ – 2013 Corporate Responsibility Report,” July 23, 2013, www.businesswire.com/news/home/20130723005958/en/Molson-Coors-Issues-%E2%80%98Our-Beer-Print%E2%80%99--, accessed August 6, 2013. 22 Remi Trudel and June Cotte, “Does It Pay to Be Good?” MIT Sloan Management Review, Winter 2009, sloanreview.mit.edu/article/does-it-pay-to-be-good/, accessed August 6, 2013. 23 Richard Levick, “Corporate Social Responsibility for Profit,” www.forbes.com/sites/richardlevick/2012/01/11/corporatesocial-responsibility-for-profit/2/, accessed August 6, 2013. 24 David Michael Jerome and Rob Kleinbaum, “7 Steps to Developing a Profitable CSR Strategy,” December 19, 2012, www.greenbiz.com/blog/2012/12/13/seven-steps-developing-profitable-csr-strategy, accessed August 6, 2013.

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Alexander knew the company now had a huge new goal to accomplish — using corporate responsibility to drive Molson Coors’ global competitiveness. He started listing the names of the key people he would need to have engaged to be successful. This note from Molson Coors provides regulatory context and clarity regarding the financial information in this case. Forward-Looking Statements This report includes estimates or projections that constitute “forward-looking statements” within the meaning of the U.S. federal securities laws. Generally, the words “believe,” expect,” intend,” anticipate,” “project,” “will,” and similar expressions identify forward-looking statements, which generally are not historic in nature. Although the Company believes that the assumptions upon which its forward-looking statements are based are reasonable, it can give no assurance that these assumptions will prove to be correct. Important factors that could cause actual results to differ materially from the Company’s historical experience, and present projections and expectations are disclosed in the Company’s filings with the Securities and Exchange Commission (“SEC”). These factors include, among others, our ability to successfully integrate our Central Europe business, retain key employees and achieve planned cost synergies; pension plan costs; availability or increase in the cost of packaging materials; our ability to maintain manufacturer/distribution agreements; impact of competitive pricing and product pressures; our ability to implement our strategic initiatives, including executing and realizing cost savings; changes in legal and regulatory requirements, including the regulation of distribution systems; increase in the cost of commodities used in the business; our ability to maintain brand image, reputation and product quality; our ability to maintain good labor relations; changes in our supply chain system; additional impairment charges; the impact of climate change and the availability and quality of water; the ability of MillerCoors to integrate operations and technologies; lack of full-control over the operations of MillerCoors; the ability of MillerCoors to maintain good relationships with its distributors; and other risks discussed in our filings with the SEC, including our Annual Report on Form 10-K for the year-ended December 29, 2012, which are available from the SEC. All forward-looking statements in this report are expressly qualified by such cautionary statements and by reference to the underlying assumptions. You should not place undue reliance on forward-looking statements, which speak only as of the date they are made. We do not undertake to update forward-looking statements, whether as a result of new information, future events or otherwise.

The Ivey Business School gratefully acknowledges the generous support of the RBC Foundation in the development of these learning materials.

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EXHIBIT 1: MALLEN BAKER’S CHART

Source: Mallen Baker website, www.mallenbaker.net/csr/definition.php, accessed October 3, 2013.

EXHIBIT 2: MOLSON COORS’ CORPORATE RESPONSIBILITY WEBPAGE

Source: Molson Coors, “Responsibility,” www.molsoncoors.com/en/Responsibility.aspx, accessed August 6, 2013, reproduced by permission of Molson Coors.

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EXHIBIT 3: MOLSON COORS IN THE COMMUNITY WEBPAGE

Source: Molson Coors, “Our Beer Print in Action with Molson Coors Chief Corporate Responsibility Officer, Bart Alexander,” blog.molson.com/community/2012/05/22/our-beer-print-in-action-with-molson-coors-chief-corporate-responsibility-officerbart-alexander/, accessed August 6, 2013, reproduced by permission of Molson Coors.

EXHIBIT 4: MOLSON COORS CASE STUDIES: UK ZERO WASTE TO LANDFILL

Source: Molson Coors, “Environmental Stewardship Case Study: UK Zero Waste to Landfill,” www.molsoncoors.com/en/Responsibility/Case%20Studies/Environmental%20Stewardship/Rethinking%20Waste%20in%20 the%20UK.aspx, accessed August 6, 2013, reproduced by permission of Molson Coors.

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EXHIBIT 5: MOLSON COORS CASE STUDIES: USING LOCAL RICE HUSKS AS FUEL IN INDIA

Source: Molson Coors, “Using Local Rice Husks as Fuel in India,” www.molsoncoors.com/en/Responsibility/Case%20Studies/Environmental%20Stewardship/Using%20local%20rice%20husk s%20as%20fuel%20in%20India.aspx, accessed August 6, 2013, reproduced by permission of Molson Coors.

EXHIBIT 6: MOLSON COORS CASE STUDIES: MOLSON CANADIAN RED LEAF PROJECT

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EXHIBIT 6 (CONTINUED)

Source: Molson Coors, “Employee and Community Case Study: Molson Canadian Red Leaf Project,” www.molsoncoors.com/en/Responsibility/Case%20Studies/Employees%20and%20Community/Molson%20Canadian%20R ed%20Leaf%20Project.aspx, accessed August 6, 2013, reproduced by permission of Molson Coors.

EXHIBIT 7: MOLSON COORS BEER PRINT COMMITMENT PANEL IN THE UNITED KINGDOM

Source: Molson Coors, “Alcohol Responsibility Case Study: Our Beer Print Commitment Panel,” www.molsoncoors.com/en/Responsibility/Case%20Studies/Alcohol%20Responsibility/Our%20Beer%20Print%20Commitme nt%20Panel.aspx, accessed August 6, 2013, reproduced by permission of Molson Coors.

EXHIBIT 8: MOLSON COORS STAMP OF RESPONSIBILITY

Source: Molson Coors, “Alcohol Responsibility Case Study: Our Stamp of Responsibility,” www.molsoncoors.com/en/Responsibility/Case%20Studies/Alcohol%20Responsibility/Stamp%20Of%20Responsibility.aspx, accessed August 6, 2013, reproduced by permission of Molson Coors.