In Wake of Molson Coors Earnings, AB-InBev Shares Fall

Anheuser-Busch InBev shares fell 3% today to a multi-year low in the wake of a dismal first quarter earnings report from Molson Coors, whose own stock plunged 15.4% to $60.64.

Molson Coors had attributed a 6/7% drop in U.S. sales to wholesalers to overall industry trends.

Not every brewer saw its shares plunge.  Boston Beer Co. shares rose 1.24% and Constellation Brands shares were up 1.37% as trading on the New York Stock Exchange came to a close.

During a conference call with analysts, Mark Hunter, president/ceo, Molson Coors “gained share in Premium Lights, led by Miller Lite. And this brand will have even bolder messaging to further assert its positioning as the original light beer that doesn’t compromise on taste. We believe the new Coors Light creative and refreshed packaging will improve the recent trend declines, as the brand will reinforce its role as the World’s Most Refreshing Beer, including the summer collaboration with YETI, a premium outdoor brand.

“We have more work to do in the above-premium segment,” he said.  “But we are seeing strong demand for Blue Moon Mango Wheat and Blue Moon variety packs as well as the recently released 15 packs and 24-ounce cans of Blue Moon Belgian White. We’ll also look to build on last year’s record-setting performance from Leinenkugel’s Summer Shandy and compete more assertively within the strongly growing hard seltzers segment with Henry’s Hard Sparkling, which is now available in the slim can package.

“The geographic footprint of our regional craft brands will continue to expand and we expect Terrapin, Hop Valley, Revolver and Saint Archer, collectively, to continue to far outpace the craft segment,” he said, adding:

“In below-premium, we continue to grow share of both segment and industry with our brands, led by the Keystone family.

“Our 2018 U.S. innovation line-up is off to a strong start. The Sol brand was re-launched in April with redesigned packaging, supported by an integrated marketing campaign that will be prominently featured throughout the summer, especially during the FIFA World Cup. Early results are very promising.

“Arnold Palmer Spiked Half & Half distribution is ramping up and will be supported through an expansive media campaign and suite of retail tools. And lastly, retro favorite and 2017 success, Zima will be available for a limited time starting on Memorial Day.

Despite the recent headwinds we have been facing, we believe we have the brands, plans and people to drive increases in profit and free cash flow and ultimately to reach our goal of volume growth, “Hunter said.

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