Molson Coors’ third-quarter net sales and income were boosted by strong beer sales in Europe and its international segment, offsetting the continued decline of beer sales in the US and Canada.
The company – which owns brands such as Coors Light, Carling and Blue Moon – registered net sales of $2.93 billion in the quarter, a 1.8% year-on-year increase, and the company’s net income rose 17.9% to $338 million, boosted primarily by the rise in net sales, global marketing optimisation and cost-saving measures.
Europe is the company’s second largest market, and brand sales volumes increased 2.1% in the quarter, with net sales rising 3% to $558 million thanks mainly to the strong performances of the company’s premium and core brands.
Brand sales volumes experienced double-digit growth in the company’s international segment, with volumes increasing 13.8% and net sales rising 2% to $67 million, as volume growth in its focus markets, higher net pricing, and the shift to a more profitable business model in Mexico paid dividends.
However, worldwide beer sales volumes declined 1% due to continued beer sales declines in the US and Canada. US sales volumes decreasing by 3.3%, primarily because of lower sales in the company’s premium light segment, though net sales in the US did increase 2.3% to $1.93 billion.
Canadian net sales fell 4.3% to $389 million, and overall beer sales volumes fell 1.4%, as a result of lower volumes in the West of the country, partially offset by growth in Ontario and Quebec
Molson Coors president and CEO Mark Hunter said: “This quarter reflects progress on a number of fronts as we drive our consistent First Choice strategy of earning more, using less and investing wisely as brand volume grew in developed and developing markets outside of North America, NSR/HL grew globally, and we grew underlying EBITDA in constant currency in each of our four business units.
“The volume growth we are seeing outside North America is driven by the consistency of our First Choice strategy, the breadth and depth of our global brand portfolio and a positive industry.
“Europe, our second largest business unit by volume, is growing consistently and accelerating the pace of portfolio premiumisation while our International business unit, led by the Latin American markets, posted mid-teens growth due to the strong performance of our global brands, led by Coors Light and the Miller Trademark brands of MGD, Miller Lite and Miller High Life.
“In the US, brand volumes or STRs were below industry volumes. As we have indicated, improving our volume performance in the US is a priority and the first step is to improve our share performance through Coors Light and accelerated premiumisation of the portfolio.”
The company has previously emphasised the need to improve its performance in North America, and this has led to the company seeking new ways to enhance its beverage portfolio.
Earlier this month, Molson Coors finalised an agreement with Canadian cannabis producer The Hydropothecary Corporation to form the Truss joint venture, which will develop non-alcoholic, cannabis-infused beverages for the Canadian market.
The company also expanded its portfolio of soft drink brands earlier this year, by agreeing to acquire California-based Clearly Kombucha for an undisclosed sum.
© FoodBev Media Ltd 2022
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