Continued success for Molson Coors: record quarter in revenues and results

In the third quarter of 2023, Molson Coors Beverage Company reported excellent results. Globally, the company’s three most important markets (the United States, Canada and the United Kingdom) are experiencing increases in net sales revenue, volume and share.
According to CEO Gavin Hattersley, Molson Coors’ recent results are further evidence of the company’s steady growth in recent years and demonstrate its ability to continue to expand in a sustainable manner.
According to Hattersley, the profits obtained are stable and thanks to the effort and work carried out, they are certain to maintain them and continue to grow based on them. In addition, the strength of their brands also gives them the security to maintain the positive trend in their earnings.

Molson Coors positioned itself as the most important brewer in the United States, surpassing its competitor AB InBev. The Coors Light and Miller Lite brands, both market leaders, continued to increase their share of sales volume. On the other hand, AB InBev experienced a downward trend in its numbers over a long period of time. In addition, Circana data, the two most important Molson Coors brands in the United States remain the most popular and have a large market share.

The Coors Light and Miller Lite beer brands have experienced a significant increase in sales in the last four weeks, with double-digit growth in dollar terms. In addition, Miller Lite’s share of the industry has been observed to have increased by almost a full point compared to the same period last year, despite the brand being in a strong growth phase in terms of share.

However, in the United States, AB Inbev’s total portfolio has experienced a steady loss of nearly 5 points in beer market share over the past 26 weeks. According to Bud Light trends, the situation seems to be getting worse and worse with steady declines.
Over the past four weeks, 13 weeks and 26 weeks, according to Circana data, the beer brand has seen a steady decline in its total dollar share, losing nearly 3 points. This trend has continued over the last four weeks, with a drop of 2.95 points, the largest decline in a four-week period for the entire year.

According to Hattersley, it is very likely that there will continue to be a significant shift in industry participation. This is not just a survey or a possibility, but a fact supported by Circana. In addition, it is fully confident in the strength of the core brands in the United States and Canada, and has a well-defined plan to maintain its earnings.

During the third quarter, Coors Light reported a double-digit increase in sales in the United States. On the other hand, Miller Lite sales had a slight single-digit increase, while Coors Banquet sales experienced growth of close to 30%.
The Coors Light and Miller Lite beer brands are working together to increase their net sales revenue for the third consecutive year, something that has not happened since the merger of Miller and Coors in 2008.

In economic terms, Molson Coors had the largest dollar gain in the U.S. market thanks to an increase in volume share in its two main economy brands: Miller High Life and Keystone Light. Among the country’s leading brewers, it had the second highest market share in the flavored alcoholic beverages market.

Molson Coors reported an increase in net sales revenue in the United States, Canada and the United Kingdom, its three largest markets globally. This means that the company has had a growth in its participation in these countries.

During the last quarter, Molson Coors grew nationally in all regions of Canada and in all segments of the beer market. Its brands such as Molson Brands, Miller Lite and Coors Light increased their market share, with the latter consolidating its position as the most popular light beer in the country since March. In addition, Molson Coors has positioned itself as a leader in flavored alcoholic beverages, surpassing other companies in the industry in terms of market share.

In the UK market, Molson Coors proved to be the most successful brewing company in terms of volume and value share. Specifically, the company managed to take second place among London brewers, after having been in fifth place just a few years ago.

On the other hand, Coors Light and Miller Lite especially benefited among the more than 50 U.S. retail chains that delayed their launches until the fall. These brands experienced a 6% to 7% increase in the amount of shelf space allocated, outperforming other brands.

“For brands this size, that’s a huge amount of space. In fact, it’s tens of thousands of cubic feet of space,” Hattersley said. “These retailers are smart entrepreneurs, and when consumer trends change to the extent that they are changing, retail chains have two choices: change shelf space allocations to meet the trends or leave money on the table. And they’re not going to leave money on the table. It’s as simple as that.
Thanks to the strength of Molson Coors’ business, the company has decided to increase its earnings forecast and reiterate its revenue projection for 2023, albeit at the higher end of the range. In addition, the overall volume growth of its brands is expected to accelerate during the fourth quarter.

According to Hattersley, they are confident that they will be able to improve results in 2024. Last year they already achieved an increase in revenues and profits, and are on track to do so again this year. In addition, they plan to make further improvements in the coming year.