Molson Coors executives told financial analysts at the Feb. 21 Consumer Analyst Group of New York meeting they are capitalizing on its move five years ago to become a “total beverage company,” with a good position in beer, flavored alcoholic drinks, energy drinks and spirits, though there is work to do to grow further.
The company just experienced its third consecutive year of revenue growth and second consecutive year of underlying pre-tax income growth. Molson Coors also is leading all U.S. brewers in dollar share growth year-to-date in 2024, a figure that has accelerated in the last four weeks as well, the company said.
The company has revised its innovation strategy, launching fewer, stronger products and reaping the benefits from that strategy, seeing brand revenue from innovation up 50%. It is working to build share of mind and expand physical availability of its core brands: Coors Light, Miller Lite and Coors Banquet. Coors Light and Miller Lite saw dollar share growth in 2023. Coors Light, in fact, grew more U.S. volume share than any other beer in 2023, they said, and it was already up more than one full share point of U.S. volume YTD in 2024.
Molson Coors expects about 10% more space at retail for its core brands this spring, after Coors Light and Miller Lite gained 6-7% shelf space in the fall of 2023.
Beyond beer, Molson Coors will continue to premiumize its portfolio, and cited the success of three-year-old UK beer brand Madri and U.S. flavored alcoholic beverage Simply Spiked as evidence that the approach works for the company. Madri will be launched in Canada and select European markets, while Simply Spiked will add a third flavor and focus on growing shelf space with three core flavors.
Headwinds in 2024 that were mentioned include the effects of the termination of a contract manufacturing agreement, but Molson Coors believes that will free up production capacity to handle any spring and summer growth. In addition, it could help ease any pain caused by the workers’ strike at the company’s Ft. Worth brewery should that work stoppage continue.
