How We Work

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.

It was clear to our founding families that building the business and doing the right thing go hand-in-hand. And while that balance is no easy feat and we don’t always get it right, it still serves as the cornerstone for Molson Coors. Over the years we’ve grown into one global company with a shared commitment to brewing extraordinary beers and running a business focused on respect for our employees, our communities, and our drinkers. That means corporate responsibility and accountability right from the start.

Global Company, Local Roots

While our company has expanded around the world, our roots and character remain local. We’re made up of dozens of local breweries and offices where our employees and our iconic brands are a part of the fabric of the community. These are the places where we live, work and connect. It only makes sense that integrity, responsibility and generosity would characterize our approach to the work we do there.

A Business of Responsibility

Corporate responsibility at Molson Coors has never been about an initiative or a department. Corporate responsibility and accountability matter to all of us. We measure the value of our contribution day in and day out by our ability to consistently deliver exceptional quality to our drinkers, how we invest in and develop our employees, and how we conduct ourselves as a member of the larger community.

We also know this is a process of continual improvement and there is always more we can do. We value what we hear from you in terms of our actions, focus and priorities.

 

Our legacy has left us with a strong set of values. We come from many different backgrounds, so our values help to unite us. They guide our decisions and our actions.

Excelling: Surprising one another and our customers by what we achieve, and committing ourselves to doing the things that are key to winning and doing them better than anyone else

Passion: We are beer champions who love winning by delighting the world's beer drinkers with our extraordinary brands

Integrity & Respect: Being honest, ethical and open as a basis for building trusting relationships, and treating others as we would like to be treated

Creativity: Unlocking and nurturing fresh ideas to make us more competitive, and doing the unexpected to challenge the norm

Quality: Talented people who go the extra mile to deliver beyond "expected quality" in everything we do and being obsessive about the quality of our products so we delight our consumers

Our Beer Print

Corporate responsibility can be as simple or as complicated as companies want to make it. We have a comprehensive strategy that touches all areas of our business in all our geographies but communicating it clearly can be challenging. We have a framework for talking about our culture at Molson Coors called “Our Brew” and we developed Our Beer Print as part of that culture to make corporate responsibility easier to understand and more relevant.

 

The simple story of Our Beer Print – Every time a beer is picked up there is a beer print left behind. Wherever we brew and sell our beer we leave a beer print on our communities, on our environment and on our business. We want to grow our positive Beer Print and shrink our negative Beer Print. It helps guide purchasing decisions, company goals, community partnerships, employee engagement and profit. It helps drive our business.

In particular, we want to grow Our Beer Print in five key areas:

Engaging with stakeholders is essential to building our reputation, developing long-term relationships, helping to understand stakeholder concerns and supporting our ambition to grow our positive impact. Our stakeholder engagement activity helps us set long term corporate responsibility priorities and targets. See Materiality Assessment for full details.

We also see Our Beer Print as a driver for our commercial business. We know a company’s environmental and social actions are of increasing importance to our beer drinkers and commercial stakeholders such as our on- and off-premise customers, and investors. It is also one of the ways our brands connect with our consumers.

Our Beer Print is unique to Molson Coors. Through it we are engaging our employees and seeing corporate responsibility come to life. We are giving all our stakeholders a look at what is going on inside the company and together looking for ways to shrink our negative and grow our positive Beer Print.

Financial Results and Impact

Molson Coors gross sales for 2015 were $5,127.4 million, or $3,567.5 million net of excise taxes. The distribution of these funds are provided in the economic impact section below.

Note that under US GAAP, these gross sales do not include sales by MillerCoors LLC, the US operating company operated in a joint venture with SABMiller. MillerCoors LLC reported gross sales of $7,725.5 million net of excise taxes. On a pro forma basis, 42% of these sales would be attributed to Molson Coors.

Molson Coors pro forma gross sales (including 42% of MillerCoors LLC) total $8,832.7 million, or $6,812.2 million net of excise taxes.

Molson Coors net income for 2015 totaled $359.5 million. Equity income from MillerCoors LLC is included in Molson Coors net income.

More information is available on the Form 10-K Annual Report.

Economic Impact - Who benefited from our revenues in 2015?

At Molson Coors we use a combination of qualitative and quantitative research to determine our material issues.

Stakeholder Perspective: Proactive engagement with the Company’s identified stakeholders is central to better understanding the key material issues for the Company. Engagement is systematic and conducted on a regular basis: collaborative engagement, roundtables and regular meetings, desk research, surveys and interviews. Every 3-5 years the Company undertakes an independent Stakeholder Review as a formal assessment of stakeholders’ changing needs and concerns.

Company Perspective: Key internal stakeholders are engaged through the Corporate Responsibility (CR) Council. The CR Council, chaired by the Chief Corporate Responsibility Officer, and sponsored by Chief Supply Chain Officer and Chief Legal & People Officer has accountability for delivering performance in the strategic, operational and commercial areas of the business. The Council meets three times a year and is comprised of senior leaders who each report to a member of the Executive Leadership Team.

Findings from both perspectives are then analyzed to determine the most material opportunities and risks to external stakeholders and the Company over a 3-5 year period.  Our most recent Materiality Assessment was carried out in 2014. Using a third party, we surveyed our most important commercial partners (on & off trade customers) in a qualitative stakeholder review. The review involved interviews with key partners to discuss:

  • Critical issues for customers and the industry,
  • Existing CR partnerships and programs,
  • Perceptions of Molson Coors’ CR program; and
  • Potential synergies and opportunities for partnership going forward.

17 in depth interviews were carried out with external commercial and CR functions in 12 companies across Europe and North America. Following the external interviews, a discussion guide was developed to explore similar issues from an internal perspective and allow the opportunity for company executives to react to some of the insights gained from the customer interviews. The review identified high, medium and low risk issues that are of importance to our stakeholders and that have the greatest impact on the business in a 3 - 5 year timeframe. The resulting Materiality Matrix identified High, Medium and Low issues.

  • HIGH – The issues in the high category are regarded as those that are of greatest importance to our stakeholders and have the largest impact for Molson Coors (3-5 years). We set annual targets in these areas and report against our progress externally and to our leadership and board. The CR Council, which meets 3 times a year, sets the policies and strategies for these areas; we conduct regular stakeholder dialogue and utilize the feedback to set strategies.
  • MEDIUM – For our mid-level material issues we have or are in the process of setting annual targets. We report performance internally and externally. The CR Council also has oversight over these issue areas.
  • LOW – These are issues that are not aligned with Molson Coors' strategy and whilst we monitor them we don't set annual targets nor report externally against them.

Our Stakeholders

Engaging with stakeholders is essential to building our reputation, developing long-term relationships, helping to understand stakeholder concerns and supporting Molson Coors’ ambition to grow our positive impact through Our Beer Print.

Our stakeholder engagement activity helps us set long term corporate responsibility priorities and targets. Our network is vast, covering all our business groups. It ranges from those that we proactively engage with to those whose public positions help shape our own views and activities. Our stakeholders include (in alphabetical order):

  • Communities
  • Consumers
  • Customers
  • Employees
  • General Public
  • Government/Regulators
  • Industry Trade Associations
  • Investors/Shareholders
  • NGOs
  • Public Health Community
Suppliers

The variety and differing scale of our stakeholders means we engage in a range of different ways depending on the level of interest, the relevance to the business and the most appropriate way to engage the stakeholders’ specific needs.

  • Employees – Annual People Survey
  • Customers – See 2014 Commercial Stakeholder Review details below
  • Internal Commercial Leaders – included within 2014 Commercial Stakeholder Survey
  • Molson Coors CR Council – Meetings three times a year
  • Other Commercial Stakeholders – Engaged through trade industry groups, regular meetings and process reviews
  • Government, NGOs & General Public – engaged at local level on appropriate issues

We conduct a formal stakeholder review every three to five years.

Stakeholder Review

Our commercial partners (i.e. our on-premise and off-premise customers) are one of our most important stakeholder groups, as they understand their own consumer activity and have a clear idea of expectations from a partner like ourselves. With that in mind, we carried out a detailed qualitative stakeholder engagement review in 2014 to explore:

  • Issues and expectations of the global brewing industry – now and in the future
  • Issues facing customer stakeholders and opportunities for collaboration
  • Perceptions of Molson Coors – performance and importance assessment

And use this output to:

  • Integrate feedback into business practices to drive performance improvements
  • Set long term corporate responsibility priorities and targets
  • Enhance the company's reputation for accountability and transparency in corporate responsibility

Please see the independent commentary and recommendation from the review.

The 2014 review found that our current corporate responsibility priorities are closely aligned to stakeholders' views and address the company's material issues. Using the review findings, we have conducted a materiality assessment to identify the issues of greatest importance to our stakeholders and that have the largest impact for the company (3-5 years period). We set annual targets for our priority areas and report against our progress externally and to our leadership and board.

We have identified our top environmental and social issues as:

  • Water Risk
  • Packaging and Waste
  • Energy and Carbon
  • Alcohol Responsibility
  • Responsible Sourcing
  • Employee Engagement and Well-Being

We explain why these issues are material for us in Top Material Issues.

We update our corporate responsibility performance on an annual basis. Our Beer Print Corporate Responsibility Report covers quantitative data for the calendar year 2015 with additional qualitative material from previous years.

The reporting scope is global and covers Molson Coors Brewing Company’s businesses: Molson Coors Canada, Molson Coors Europe (covering the UK & Ireland and Central European operations), and Molson Coors in India.

Molson Coors International (MCI) has a production and sales presence in Asia, continental Europe, Mexico, Latin America and the Caribbean (excluding Puerto Rico which is part of the MillerCoors business). Molson Coors owns and operates three breweries in India.

In June 2012, Molson Coors acquired StarBev which merged with Molson Coors (UK & Ireland) and was renamed Molson Coors Europe. Our Central European business employs approximately 4,100 people, operates nine breweries and sells its market-leading brands in the Czech Republic, Serbia, Croatia, Romania, Bulgaria, Hungary, Montenegro, Bosnia-Herzegovina and Slovakia.

In July 2008, Molson Coors and SABMiller plc combined their US and Puerto Rico operations to form a joint venture called MillerCoors. For financial reporting under US accounting standards, MillerCoors is accounted for by Molson Coors under the equity method. Therefore, MillerCoors’ revenues and expenses are not reported in Molson Coors’ consolidated results. Molson Coors does receive and report 42% of the profits of MillerCoors. For full transparency and accuracy, we separately report our 42% share of MillerCoors’ corporate responsibility performance data.

Environmental Data

The following changes in scope reflect organizational changes made in 2015:

  • 2011 baseline and trend data modified to exclude Shobnall Maltings which was sold in 2015.
  • 2011 baseline and trend data modified to exclude Alton Brewery which was decommissioned in 2015.
  • Plovdiv brewery in Bulgaria was closed in 2015 with volumes shifting to our Haskovo Brewery and with the intention of re-building a smaller craft brewery on the Plovdiv site. Due to the shift in volumes and expected operations to continue in the future on the site, the baseline and trend data was not modified in this case.
  • A micro-brewery on Granville Island in Vancouver, Canada which is operated by Six Pints, a company owned by Molson Coors Brewing Company was included for the first time in 2015. It was not included in previous years due to data availability and the immaterial size of the operations. 2011 baseline and trend data has been modified on the basis of 2015 activity data.

Third Party Assurance

Corporate Citizenship provides third party assurance of our data. This year’s assurance was performed against ISAE 3000, the internationally recognized standard. The scope of reporting is based on operational control.