Molson Coors Vision: Accelerate Growth

Long before the U.S. beer industry was upended by one Bud Light can, Molson Coors Beverage Co. "changed how we invest, market and operate," Gavin Hattersley, president/CEO said.  "And we changed our future."  The company is "built for growth, we expect growth, and we are delivering growth," he added.

"We turned around Molson Coors over the past few years, and our focus now is on accelerating the growth we created in the years ahead.”

“Our long-term growth algorithm anticipates net sales revenue growth, margin expansion, and attractive earnings per share growth, while our expected compelling free cash flow generation supports reinvestment in value creation,” said Tracey Joubert, Chief Financial Officer. “With substantially improved financial flexibility, we are pleased to announce a new $2 billion share repurchase program as part of our balanced and cohesive approach of prioritizing capital allocation among investing in our business, reducing net debt, and returning cash to shareholders. As we look to the future, we are confident in our strategy and ability to drive compelling returns for our shareholders."

To build on the successes achieved by Molson Coors since 2019, the new Acceleration Plan has five pillars:

       Grow core power brand net revenue.      Molson Coors core brands have been gaining strength, and the Company plans to consistently grow its core power brand revenue in the years ahead.

   In the U.S., Coors Light, Miller Lite, and Coors Banquet, have been on an upward trajectory for several years, making them well positioned to benefit from the shifts in consumer purchasing behavior largely in the premium segment that have occurred in 2023. Core brands in other large global markets have also been gaining industry share, including Molson trademark in Canada and Ozujsko in Croatia. Carling continues to be a top brand in the U.K. The Company is focused on continuing that momentum for these brands.

       Aggressively premiumize its portfolio.      The Company has aggressively premiumized its portfolio, in both Beer and Beyond Beer, to meaningfully change the shape of its product portfolio. With the benefit of major innovation successes, including Madri in the U.K. and Simply Spiked in North America, the Company has increased its Net Sales Revenue from its Above Premium portfolio from 23% in 2019 to 28% in 2022. Building on this strength along with compelling new innovations, particularly in Beyond Beer, the Company’s goal is for its Above Premium portfolio to reach approximately one-third of its Net Sales Revenue excluding contract brewing, factored and distributor owned brands in the medium term.

       Scale and expand in beyond beer.      The Company’s Beyond Beer portfolio includes Flavor, Spirits, and Non-Alcoholic. This Beyond Beer portfolio supports the Company’s premiumization efforts and is focused on scalable products in higher-growth segments. From diversified flavor, including winners like Simply Spiked and Arnold Palmer Spiked, to acclaimed whiskey brands under the Coors Spirits Company, to energy drinks through its partnership with Dwayne Johnson’s ZOA Energy, the Company expects its Beyond Beer portfolio to drive about half of its Above Premium net sales revenue growth over the medium term.

       Invest in its capabilities.      Molson Coors intends to continue to invest in building leading capabilities and efficiencies, including digital transformation, marketing effectiveness, sales execution, and sustainability initiatives. Since 2019, the Company increased aluminum can production capacity, built a new U.S. variety packer, added a can line in Croatia, built a new state-of-the-art brewery in Canada, broke ground on a major modernization in its Golden Colorado brewery, and added flavor production capabilities in the U.S., Canada, and the U.K. The Company’s digital transformation has enhanced the effectiveness of its marketing and sales efforts as well. Continued investments in these capabilities are expected to help drive growth and margin expansion through productivity improvements, operating efficiencies, and cost savings.

       Support its people, communities, and planet.      The Company recommitted to its core values, the first of which is “Put People First” along with investing in their success and supporting the communities in which it operates globally. Hattersley commended the more than 16,000 employees around the world who helped deliver growth over the past several years, along with the fundamentals of the Revitalization Plan.

It should be noted that many of Molson Coors' environmental action have proven to boost the company's profits. For example, a few years ago a production worker at the company's Golden, Colo., brewery set a goal of eliminating all waste that was sent to landfills.  He succeeded. and now the Golden  facility sends no waste to landfills.  

Looking to the future, Hattersley said the company expects  annual net sales revenue to grow in the low single-digit range on a constant currency basis, mid-single-digit underlying income before income taxes.  

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