Molson Coors has posted a 0.2% reduction in its net revenue for the second quarter of the year as beer sales in the US and Canada stagnate.
The company – which owns brands such as Carling, Blue Moon and Coors Light – recorded net sales of $3.09 billion for the quarter. Net income was up 28.6% to $424.1 million.
In the US, which accounts for around two-thirds of the company’s business, net sales were down 3.1% and brand volume decreased 4.8%, which was said to be due to lower volume in its premium light segment.
However, the firm posted a strong performance in its Europe and international units, partly thanks to increased beer consumption during the 2018 Fifa World Cup.
The results have been released the same day as Molson Coors Canada announced it will partner with cannabis producer The Hydropothecary Corporation to create a joint venture selling cannabis-infused drinks.
The companies aim to develop non-alcohol cannabis beverages for the Canadian market once it becomes legal.
In another move to offset slowing beer sales, Molson Coors last month announced it would expand its portfolio of soft drink brands with the acquisition of California-based Clearly Kombucha.
Molson Coors CEO Mark Hunter said: “”We were pleased with the sequential improvements in the second quarter for top and bottom line results. Our full-year underlying cost savings and free cash flow guidance has not changed, despite ongoing industry demand challenges in the US and Canada and inflationary pressures.
“While we are aggressively addressing our volume performance in North America, performance in our Europe and International businesses was strong in the quarter.
He added: “Our teams are leaning in to deliver on our commitments for the full year by finding opportunities to earn more, use less and invest wisely. Guidance for free cash flow of $1.5 billion plus or minus 10% this year is based on continuing to drive our first choice commercial excellence initiatives, as well as our disciplined approach to cost savings, flexibility with discretionary spending and our continued focus on driving working capital efficiencies.”
© FoodBev Media Ltd 2021
World Beverage Innovation Awards – NOW OPEN FOR ENTRIES!
The awards celebrate excellence and innovation across the global beverage industry.
Don’t miss out on having your innovations recognised on a global scale.
Deadline for entries 23 July – enter now!
Don’t get left behind
Start your free Foodbev magazine trial today and join thousands of fellow industry professionals in receiving food and drink trends direct to our business.
Click here to start your free trial