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Image cropped: “Milwaukee’s Best” by Wouldpkr T B is licensed under CC BY-SA 2.0
In a continuation of its premiumization strategy Molson Coors will no longer be producing eleven of its more fringe beer offerings.
Here’s the deal….
In an effort to address the reality that Americans are migrating to other beverage options like hard seltzer and drinking less beer in general, CEO Gavin Hattersley announced on a July 29 earnings call, that Molson Coors would be pruning its portfolio significantly.
And when you hear the beers that are being sunset you’re not going to be surprised.
(CEO Gavin Hattersley: Courtesy Molson Coors)
According to a report in AdAge, Molson Coors will cease production of Milwaukee’s Best Premium (but not its ice and light varieties), Mickey’s Fine Malt Liquor Ice (but not the core brand), Henry Weinhard’s Private Reserve, Keystone Ice, Hamm’s Special Light, Keylightful (a fruity line extension of Keystone Light), Icehouse Edge, Magnum, Miller High Life Light, Steel Reserve 211 and Olde English HG 8000.
Had any of those beer brands lately? Probably not.
As Food Dive reports ‘There is no companywide strategy to discontinue these brands. Hattersley said on the call these brands are popular among some local areas, and Molson Coors’ local sales teams will discuss a sunset strategy that makes sense.”
“Beer consumption in the US dropped 7.5% from 2015 to 2020, according to IWSR Drinks Market Analysis research. Over that same time, the US market share for beer in the US slipped 3.5 percentage points to 44%, according to Statista data.
“It was clear that people were looking for other alternatives and other choices and we were being at a clear disadvantage because we didn’t play in some of those spaces,” Hattersley said in a previous interview with Food Dive. “Our portfolio was pretty challenged.”
“Premiumization is here to stay at Molson Coors,” Hattersley stressed on the call.
And it appears that his strategy is paying off. The company said its second-quarter net sales revenue rose 17.4% to $2.94 billion. That’s its best quarterly top-line growth in more than a decade.
“We’ve had our share of challenges over the last several years,” said Molson Coors CEO Gavin Hattersley. “But that is changing, and today the signs all say the same thing: Molson Coors’ future is bright, and the revitalization plan is succeeding.”
