Vertical Integration in the Malting Barley Industry: A “Silver Bullet” for Coors?

Michael Boland and Gary W. Brester

Review of Agricultural Economics, 2006, vol. 28, issue 2, 272-282

Abstract: The Coors Brewing Company owns a single-site, integrated malting facility and brewery in Golden, Colorado; a second brewery in Memphis, Tennessee; and a mixing facility in Elkton, Virginia. Coors operates a research and development program that breeds barley varieties suitable for malting at the Golden site. Coors contracts with 900 growers in Colorado, Idaho, Montana, and Wyoming for approximately 160,000 acres of malting barley. This case study is designed for senior- and graduate-level courses in agribusiness management. The case relates three theories of vertical coordination to Coors' decision to contract 100% of its malting barley requirements. Copyright 2006, Oxford University Press.

Date: 2006
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