US-based Molson Coors posted third-quarter growth despite inflationary and global supply chain pressures. Specifically, it delivered revenue and earnings growth in this penultimate period of the year, driven in part by the strength of Coors Light in the U.S., as well as momentum in Europe and Canada and the continued expansion of its global portfolio.
The company notes that third-quarter net sales revenue increased to $2.82 billion, up 2.5% compared to the same period last year. The gains came despite a series of global supply chain problems and significant inflation, which led to skyrocketing prices for transportation and key raw materials. These pressures are expected to persist in the coming months.
%22Twenty-four months ago, we announced a revitalization plan to put Molson Coors on the right track to achieve sustainable revenue and profit growth. Fuel prices have gone up. Truckers are in short supply around the world, and freight costs have risen as well. Nevertheless, I remain confident that we are on track to deliver our key full-year financial guidance for 2021,%22 notes Molson Coors CEO Gavin Hattersley.
And while Molson Coors has taken significant steps to reduce the effect of supply chain tightness, including entering into long-term contracts with carriers, hedging programs and moving more of its products to rail, %22inflation will continue to be a pressure point for us and almost every other company,%22 Hattersley stresses.
The tide is beginning to turn. In Canada, Molson Coors improved its national beer market share for eight consecutive months, leading to total share growth in the third quarter, the best share trend improvement in at least six years. In the UK, meanwhile, on-premise net sales revenue, by far the largest channel for Molson Coors in Britain, has recovered to 2019 levels and margins exceeded 2019 levels.
Molson Coors plans to spend more on marketing in the fourth quarter than in the same quarter of 2019 to continue that momentum, supporting its big brands in North America and Europe, notes Molson Coors CFO Tracey Joubert.
Molson Coors’ largest brand, Coors Light, is increasing its share of total beer in the United States for the first time in more than five years. The brand is also showing momentum in Latin America. In Puerto Rico, for example, Coors Light is growing for the first time in 15 years.
