Eric vs. Ian Molson: Conflict, Consequences, and Control

Consequences of the Eric and Ian Molson Conflict

Although the interpersonal conflict brewing between Eric and Ian Molson created boardroom strife and likely led to a number of deeply uncomfortable confrontations, Molson Inc. ultimately came out ahead. Dysfunctional as the conflict between the Molson cousins might have been, it forced all board members and managers to contemplate their roles within the company and their responsibilities to it. Most significantly, the conflict brought to light the division between so-called "brewer" or "real" leadership and the "hired help" ("Vying for Control of Molson Inc.," n.d.).

The "hired help," including board member Ian Molson, bore the family name; nevertheless, Ian Molson and his supporters brought to the table a vastly different idea of business operations and strategy than the one held by Chairman of the Board and core brewing operations manager Eric Molson. Eric emerged victorious from the conflict, if not because of his managerial style then because of his command of over half of Molson's shares.

Ian Molson might have been viewed as impatient and aggressive by his opponents in the company, but the differences in opinion he brought to the board ultimately benefited the family-run business ("Vying for Control of Molson Inc.," n.d.). Based on their passionate involvement at board meetings, it became clear that both Eric and Ian wanted what was best for Molson Inc. Ironically, Ian opposed the merger with Adolph Coors even though Eric represented more of the family lineage and tradition that preserved the ideal of Molson as a Canadian company.

In fact, the conflict between Eric and Ian can be traced back to the disputed sale of the Montreal Canadiens ("Eric Molson Retains Control of Brewery," 2004). Ian and Eric's fathers—brothers in the Molson empire—disagreed over ownership rights to the hockey team, leading to an indelible rift in the family that resurfaced when Ian brought his Harvard education with him to the company in the late 1990s. Even though Ian had worked in the brewery as a teenager, he was nevertheless viewed and treated as an outsider whose interests clashed with the side of the family that had maintained continual control over Molson Inc. since the Canadiens dispute.

In any case, the conflict between Eric and Ian secured Eric's position as chairman and effectively silenced Ian, who would later resign. The merger with Adolph Coors proved successful, and Molson Coors now enjoys a substantial international presence as one of the world's largest brewers. Consequently, share values rose following the merger.

References

"Eric Molson Retains Control of Brewery." (2004). Modern Brewery Age. July 5, 2004. Retrieved March 31, 2007, from http://www.findarticles.com/p/articles/mi_m3469/is_27_55/ai_n6133475

"Vying for Control of Molson Inc." (n.d.).