Molson Coors Beverage Co. reports net sales rose 6.5% in 2021 to $10.28 billion, the first time in a decade that the company posted full-year revenue growth. Net income reached $80 million, reversing a $1.37 billion loss a year earlier.
The company attributed the higher sales to growth of its biggest brands, a sales rebound in bars, restaurants and at events, and a continued shift into higher-priced, above-premium beverages, which reached a record level of the company’s global portfolio.
Molson Coors said today it booked double-digit revenue and profit growth in its fiscal fourth quarter — the second consecutive quarter it has posted both top- and bottom-line gains versus the year-ago quarter — and issued guidance for 2022 projecting both top-line and bottom-line growth for the year. The achievement would mark the first time in more than a decade the company would grow revenues and profits for a full fiscal year.
“Today our top line is growing for the first time in ten years, our core brands are growing net sales revenue for the first time in years, our portfolio is premiumizing to levels never before achieved, we are moving to scale beyond beer, and our business is making tangible progress toward achieving the goals of our revitalization plan,” Molson Coors CEO Gavin Hattersley said in a call with analysts and investors. “We are set up for a strong 2022.”
The global beverage company also said it paid down $900 million in debt for the year and its board increased its quarterly dividend 12% to 38 cents a share.
Fourth-quarter net sales revenue rose to $2.62 billion, up 14.2% compared with the year-ago quarter. The company swung to net income of $80 million, or 37 cents per diluted share. That’s compared with a net loss of $1.4 billion, or $6.32 per diluted share, in the fourth quarter of 2020, which was largely attributed to one-time charges.
Molson Coors’ 2021 gains came despite another bumpy year in the beverage industry, which included the double-punch of a snarled global supply chain and significant inflation, which resulted in soaring prices for transportation and key raw materials. The year also was marred by persistent issues wrought by the global pandemic, which resulted in a fourth-quarter pullback and renewed restrictions amid the rapid spread of the omicron variant in key markets.
“That impacted our business, creating a whole host of challenges,” Hattersley said. “And yet, through it all, Molson Coors made tremendous progress. Molson Coors finished 2021 as a healthier business than we were at the end of 2019.”
New and trusted brands taking off
The company’s two top-selling brands each grew net sales revenue globally, with a particularly strong performance in the U.S., where Coors Light finished the year up 4.4% and Miller Lite up 7.6%. In Canada, Molson Coors’ second-largest market, Coors Light reported revenue growth in the fourth quarter while Miller Lite accelerated its growth in the fourth quarter to finish 2021 up double digits.
Molson Coors finished 2021 with above-premium beverages comprising the largest percentage of sales in the company’s history, fueled by growth in hard seltzers in the U.S. and Canada and beer innovations in the U.K. and Central and Eastern Europe.
In the U.S., the company boasted the fastest-growing hard seltzer portfolio among major beverage companies, posting triple-digit growth in 2021, per data from market research firm IRI. Its two entries, Vizzy and Topo Chico Hard Seltzer, each rank in the top five hard seltzer brands in the country and continue to grow quarter after quarter, Hattersley said.
Molson Coors is particularly bullish on Topo Chico Hard Seltzer, which launched nationwide in January. With momentum in both established and new markets, and more innovation on the way, the company thinks the brand can become a top-3 hard seltzer in the competitive U.S. market. Twelve-packs of the brand’s newest entry, Topo Chico Ranch Water, are now the fastest-turning ranch water in the U.S.
Blue Moon Belgian White and Peroni each grew in the U.S. in 2021, and Molson Coors’ portfolio of regional craft brands outpaced the category, per IRI. The company is gaining total share of craft in Canada, as well, led by strong performance of Brasseur de Montreal and Trou du Diable.
Sky is the limit beyond beer
ZOA, the fastest-growing energy drink in the U.S., which now ranks as the No. 2 health energy drink in the convenience channel, helped Molson Coors’ Emerging Growth business contribute nearly $800 million in 2021 net sales revenue, tracking ahead of its $1 billion annual revenue target by 2023.
The brand, which launched last year, has plenty of blue sky ahead as it continues to expand distribution across the U.S., Hattersley said.
Looking to 2022, Molson Coors said it project a mid-single-digit sales increase