Latest / Family Business Stories with Fexingo: Succession, Legacy, and Multi-Generational Companies / How the Molson Family Brewed a 240-Year Legacy
Transcript
- Lucas: So Luna, when you think of a family business that's lasted over two centuries, what comes to mind? Luna: I think of the Zildjians, making cymbals for 400 years. Or maybe the Berettas, with their guns. But I'm guessing you have a brewery on your mind? Lucas: Exactly. The Molson family of Canada. They've been brewing beer since 1786, and the company is now into its 14th generation. That's older than Canada itself. Today we're talking about how they've managed to survive and thrive. Luna: Fourteen generations. That's incredible. But what's the secret? I mean, most family businesses don't even make it past the third generation. Lucas: Right, and there's a lot of research that says only about 10 percent of family businesses survive to the third generation. The Molsons have beaten those odds by a mile. And the story has some surprising turns, like how they survived Prohibition. Luna: Prohibition. That's a classic test for any brewery. How did they handle that? Lucas: Well, it wasn't just the US. Canada had its own version, and it hit Ontario in 1916. The Molsons had to pivot fast. They shifted to making dairy products, and even ran a fleet of milk trucks. They also produced a non-alcoholic beer called 'Molson's Golden Ale' that was basically cereal beverage. Luna: Milk trucks and cereal beverages. That's creative. But did it actually keep the company profitable? Lucas: It kept them alive. And when Prohibition ended in 1927, they were ready. But the real challenge came later, with the merger in 2005. That's where the family had to make a tough choice about control. Luna: The merger with Coors, right? That created Molson Coors, one of the largest brewers in the world. Lucas: Yes. And it wasn't just a financial decision. The Molson family had to agree to dilute their ownership, which meant giving up the majority control they'd held for over two centuries. It was a contentious vote among family members. Luna: I remember that. There was a public feud, I think, with one family member leading the opposition. Lucas: Right, Ian Molson, who felt the merger would betray the family legacy. But the vote passed, and the merger went through. It shows that survival sometimes means adapting, even if it means losing some control. Luna: And that's a lesson for any family business. But I'm curious, what governance structures did they have in place that helped them make these tough decisions? Lucas: The Molsons were actually early adopters of a family council. They formalized it in the 1990s, but the seeds were there long before. They have a family constitution, and they've held regular family assemblies. That's a key part of their longevity. Luna: A family constitution. That sounds like a legal document, but I imagine it's more about values and expectations. Lucas: Exactly. It lays out the rules for who can work in the business, how disputes are resolved, and the role of the family in governance. It's a roadmap that helps prevent family conflicts from destroying the company. Luna: And they also have a family foundation. That seems to be a common thread among long-lasting family businesses. Lucas: The Molson Foundation was established in 1973, but the family's philanthropy goes back decades. It's a way to channel the family's wealth into causes they care about, and it also reinforces their legacy beyond just the beer. Luna: So they're not just preserving the business, but the family's identity and values. Lucas: Precisely. And that's a big reason why they've been able to hold the family together through all those generations. Luna: You know, this conversation reminds me how much I appreciate these deep dives. And if you're finding value in this, the way the show stays ad-free is through listener support. If you'd like to help, you can buy me a coffee at buy me a coffee dot com slash fexingo. Lucas: That's right, and we genuinely appreciate that. It keeps us going and we can keep bringing you these stories. Luna: Now, back to Molson. So they had this family council and constitution, but there must have been some near misses, times when the company almost didn't make it. Lucas: Oh, absolutely. In the 1960s, the company was struggling. The Molson family wasn't as involved in day-to-day operations, and the brewery was losing ground to competitors. It took a strategic shift, bringing in outside executives, to turn things around. Luna: Interesting. So they recognized when they needed outside help. That's not always easy for a family business. Lucas: Right. They've always been willing to hire non-family talent for key roles. That's a lesson many family firms ignore. The company is now led by a non-family CEO, but the family still has a significant ownership stake and a role in governance. Luna: And what about the next generation? How are they preparing the Molsons of the future? Lucas: Well, they have a program called 'Molson Coors Family Legacy' that helps younger family members understand the business and decide if they want to be involved. It's not just about owning shares; it's about educating them on the responsibilities that come with it. Luna: So they're building a pipeline of future leaders, but also giving them the freedom to choose their own paths. Lucas: Exactly. Not everyone in the family has to work in the business, but they all need to understand it if they're going to be good stewards of the legacy. Luna: It's a really thoughtful approach. I guess that's why they've made it 14 generations. Lucas: And there's a deeper point here. The Molsons have adapted not just their business, but their family structure, over the centuries. They've gone from a single-family control to a more dispersed ownership model, with family councils and foundations. That's a lesson in flexibility. Luna: So it's not just about holding on to control, but about evolving the family's relationship to the business. Lucas: Precisely. And as we look around at other family businesses that have survived, from the Hermès family to the Wallenbergs, we see similar patterns. They all have clear governance, a willingness to adapt, and a focus on long-term legacy over short-term gain. Luna: That's a great takeaway. So what's the one thing our listeners should remember about the Molson family? Lucas: I'd say it's that longevity isn't about stubbornly holding on to the past. It's about changing when you need to, while holding on to the core values that define you. The Molsons have changed their business multiple times, but they've never lost their identity as a brewing family. Luna: And that's a lesson that applies far beyond the beer industry. Lucas: Absolutely. Whether you're running a family business or just trying to build something lasting, it's about balancing tradition and change. The Molson story is proof that it's possible to have both.