Molson Coors has proven its resilience at a time when the global economy was shaky. Despite three years of high volatility, the multinational has managed to use its strategic plans implemented in 2019 to remain grounded regardless of economic conditions.
Rahul Goyal, business strategy manager commented on the Beer Business Daily Beer Industry Summit in Florida that was held recently and said that his company’s related brands were well prepared to compete in whatever comes from 2023 onwards. He also commented that there was a range of prices and flavors that could accommodate various budgets and tastes.
On the opening day of the summit, the 22-year-old leader of Molson Coors displayed a focused and determined attitude about the company’s long-term plans awarded since 2019. Molson Coors has just unveiled its latest developments in the U.S. market with three core brands that are among the best in the world: Coors Light, Miller Lite and Coors Banquet. It is further expanding its product line from the top tier with a growing line of strong seltzers and FABs. Its value-for-money products are also taking off, driven by a strategy focused on four significant brands: Keystone Light, Miller High Life, Icehouse and Steel Reserve Alloy Series.
For his part, Goyal, noted that “significant progress has been made since 2019. When I look at our business and our portfolio, I see core brands that are healthier than they have been in years. I see momentum in almost all segments. … And I see tremendous investment behind our brewing capabilities and our operations.”
The company’s results over the past two years bear this out: Molson Coors has increased net sales revenue for six consecutive quarters, beginning in the third quarter of 2022. That’s amid a backdrop of extreme uncertainty, including a global pandemic, international supply chain constraints and, now, widespread inflation that has affected the cost of goods and products across the board.
Since the turnaround plan that Molson Coors put in place in 2019, fortunately the company has been able to weather the adversities of the past three years and is also poised for what may come. However, Goyal stressed, “This does not call it ‘mission accomplished.’ But we call it progress.”
Beginning in the third quarter of 2022, Molson Coors’ core products have been united for better results. Coors Light and Miller Lite Coors beer have combined to increase sales and share, and are “very close to volume growth,” Goyal said. Coors Banquet “is absolutely on fire,” performing “at record levels.”
They also announced their third quarter financial results and highlighted the good revenue portfolio they have built from their partnerships with The Coca-Cola Company. As a result, its Topo Chico Hard seltzer has become one of the most consumed seltzer brands in the United States and one of the top five growing brands. The next innovation generated from the partnership, Simply Spiked Lemonade, finished 2022 as the No. 4 new brand in total beer, according to IRI.
Additional innovation is on the horizon for both brands in 2023, including Topo Chico Spirited, a spirits-based RTD that will launch tequila- and vodka-based beverages in select markets this spring. “We are very pleased with our partnership with The Coca Cola Co.” said Goyal, referring to the speed at which the two companies brought Topo Chico Hard Seltzer and Simply Spiked to market. “There are always ways to keep building. … Two years later, we’ve definitely built a solid foundation.”
Another key initiative of Molson Coors’ revitalization plan was the development of its non-alc business. Its biggest bet, energy drink ZOA, climbed to one of the top 15 energy drinks in the U.S. in 2022, according to IRI data, and also has a long way to go, he said.
And while consumers have proven relatively resilient for now, Goyal stressed that the entire Molson Coors portfolio is uniquely built to meet any consumer need in the event of an expected economic downturn. Led by its portfolio of core economy brands, the company has products to fit any taste and price profile, he said.
“The best thing about these brands is that they reach a broad group of consumers in all regions of the country and in all market channels,” he said. “We have a very diverse portfolio, and that allows us to be flexible with the way the consumer moves. We’ve been very consistent from the beginning: all segments matter, and we’re making sure we’re pushing against all of them,” he concluded.
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