10/13/04 Molson Inc. PR Communications Plan SLIC Comm. Molson Inc. and Adolph Coors Co. A Merger of Equals Presented by: SLIC Comm

10/13/04 Molson Inc.PR Communications Plan

SLIC Comm.

Molson Inc. and Adolph Coors Co.

A Merger of Equals

Molson Inc. and Adolph Coors Co.

A Merger of Equals

Presented by: SLIC Comm


SLIC Comm.

SLIC CommSLIC Comm

Who we are…

Crispin Martin - Visual

Lauren McConnell - Project Manager

Bethany McIntyre - Editor

Melanie Robert - Budget

Holly Wilson - Communicator


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AgendaAgenda

1. Merger Specifics

2. Strengths

3. Weaknesses

4. Opportunities

5. Threats

6. Objectives

7. Strategy #1

8. Strategy #3

9. Critical Path

10. Target Audience

11. Critical Strategy

12. Tactics

13. Budget

14. Conclusion


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Merger SpecificsMerger Specifics

Merger of equals.

Eric Molson (Chairman of the Board) supports merger.

3rd largest brewery in North America.

5th largest brewery in the world.

Combined US$6 billion in sales.

Will hold four of eight best-known

beer brands.


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Merger SpecificsMerger Specifics

Class A and B vote will be held Dec. 13.

Requires 2/3 support from each class.

Options shareholders may vote.

Class A very unhappy with option vote.

Ian Molson is encouraging another merge option.


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StrengthsStrengths

Less threat of being absorbed by

larger corporation.

Competitive in global market.

Stronger platform.

Cost savings of $175M by 2007.

Stay in the hands of the Molson family.


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WeaknessesWeaknesses

Not received well by all shareholders.

Merge of two struggling companies.

Poor past decisions.

Canada’s beer will be at least partially owned by foreign owner.


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OpportunitiesOpportunities

Reinvent the company.

Target new markets.

Synergies produced.

Promote options for shareholders.


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ThreatsThreats

Many risk factors.

Current partnership with Coors.

Image of Coors.

Merging for the wrong reasons.


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ObjectiveObjective

To persuade institutional and block shareholders to support the proposed merger by December 1, 2004.


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Communications Strategies

Communications Strategies

OBJECTIVE: To persuade institutional and block shareholders to support the proposed merger

by December 1, 2004.

Strategy #1: Persuade 70% of dissident shareholders to support the merger by Dec. 1, 2004

Strategy #2: Generate 100 pieces of media (print, television, radio, Internet) emphasizing three key messages by November 13, 2004

Strategy #3: Win the support of AIM Trimark Investments (largest class A shareholder with 14.5%).


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Strategy #1Strategy #1

Persuade 70% of dissident shareholders to support the merger by December 1, 2004.

Tactics• Distribute investors’ kit with strong ROE details.• Invite investors to a webcast conference.• Public affairs advertising in an

industry magazine.


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Generate 100 pieces of media (print, television, radio, Internet) emphasizing three key messages by Nov. 13, 2004:

Tactics• Send out a news release.• Arrange television interviews for Molson CEO,

Dan O’Neill.• Provide details and contact information on the

corporate website.


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Win the support of the AIM Trimark Investments (largest Class A shareholder with 14.5%) by November 13, 2004.Tactics

• Distribute investors’ kit with strong ROE details.• Invite AIM representatives to a luncheon

meeting; book appointment by Oct. 30/04.• Send out a news release updating status of

AIM Trimark Investments’ position.


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Critical StrategyCritical Strategy OBJECTIVE:

To persuade institutional and block shareholders to support the proposed merger by December 1, 2004.

Strategy #1: Persuade 70% of dissident shareholders to support the merger by Dec. 1, 2004

Strategy #2: Generate 100 pieces of media (print, television, radio, Internet) emphasizing three key messages by November 13, 2004

Strategy #3: Win the support of AIM Trimark Investments (largest class A shareholder with 14.5%).

Ontario Teachers’ Pension Plan (OTPP) is asking court to disallow option shareholders to vote as

Class A shares.

Convince the OTPP to drop court motion blocking option shareholders from voting as Class A shares.


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Critical StrategyCritical Strategy

Convince the Ontario Teachers’ Pension Plan (OTPP) to drop the court motion blocking option shareholders from voting on the merger as Class A shares by November 13, 2004.


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Target Audience:Ontario Teachers’ Pension Plan

Target Audience:Ontario Teachers’ Pension Plan

Independent corporation responsible for investing the $79 billion fund.Administers the pensions of 155,000 Ontario teachers and 97,000 retired teachers.Key players: Robert Bertram; Claude Lamoureaux; Steven Jarislowsky.


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Target AudienceOntario Teachers’ Pension Plan

Target AudienceOntario Teachers’ Pension Plan

Why they are upset:Stock option holders will be allowed to vote as Class A shareholders.

Stock option holders have conflicting interests.

Option votes will dilute the voting power of Class A shareholders.

If merger happens, option holders will have material benefits they would not have had otherwise.


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Tactic #1Tactic #1

Create an investors’ kit for the merger. Contents include:

»Forecasting data»Brand market share»Combined size and sales»Depiction of merged company »Cost efficiency and savings»Return on shareholders’ equity


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Tactic #2Tactic #2

Hold a roundtable luncheon with the representatives of the Ontario Teachers’ Pension Plan (OTPP).

The National Club

Attendees from Molson - Eric Molson, Dan O’Neill, Sylvia MorinAttendees from OTPP -Claude Lamoureaux, Robert Bertram, Steven Jarislowsky


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Tactic #3Tactic #3

Hold a press conference.• Court action will be dropped.• Will be held at Toronto Molson brewery.• Articulating agreement and amendments.• OTPP and Molson representatives will

be present.


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BudgetBudget

Professional fees $85,000Limousine Service $330Lunch at the National Club $4,000Investors’ kits printing $8,750Courier costs $1,000Industry advertising $60,000Media kits $1,000

Total: $168,080


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Wrap-UpWrap-Up

Successful completion of critical strategy.

Launching strategies into the field.

Implementation of tactics.

Concrete “yes” vote on merger on Dec. 13.

Documents

10/13/04 Molson Inc. PR Communications Plan SLIC Comm. Molson Inc. and Adolph Coors Co. A Merger of Equals Presented by: SLIC Comm