From Miller Coors & Alex Parker,
For months, Molson Coors has predicted the company’s core brands would win a sizable increase when U.S. retailers complete their spring resets.
Now we know how much to expect.
Molson Coors CEO Gavin Hattersley says Molson Coors expects its three core brands – Coors Light, Miller Lite and Coors Banquet – to grow space by more than 10% in the largest U.S. grocery and convenience retailers this spring compared to last year.
“We expect to be the biggest beneficiary of this spring’s shelf resets in the United States,” he told attendees of the Consumer Analyst Group of New York (CAGNY) conference yesterday.
THE BIG PICTURE
This massive increase in shelf space started taking shape in the back half of 2023 when Molson Coors saw a 6% to 7% expansion in shelf space for Coors Light and Miller Lite among a group of 50 leading retailers, an unprecedented level of summer and fall reset activity driven by shifting consumer preferences.
And, as president of U.S. sales Brian Feiro noted, they’re coming not only in large-format stores, but in small-format retail, as well, where Molson Coors traditionally is underrepresented.
The gains come as Molson Coors seeks to continue the momentum that delivered record results in 2023 by not only winning more space, but by capitalizing on major new marketing campaigns, effective retail programming, innovation and more.
ZOOM IN
Winning substantial share of shelf space is a major proof point that Molson Coors is not only sustaining the progress it made in 2023, when it grew more volume share of the U.S. beer market than any other brewer, but is accelerating it.
Of course, gaining space means more product on retail shelves. But it also indicates a larger, more visible presence for Molson Coors’ brands, which helps retailers meet the growing demand, mitigate out of stocks and deliver a positive shopping experience for consumers.
And it’s driven, in part, by Molson Coors’ expansive view of category management, Hattersley said.
“We are the beer category captain for 50% of the retail volume in the country,” he said. “Retailers trust our insights and our understanding of the category. They trust our strategic partnership and our belief in category growth. And that is exactly why our team draws ... many more retail sets than our strong market share would suggest that they should.”
Overall, Molson Coors leads all brewers in year-to-date dollar share growth, Circana data show – and it’s accelerating.
Hattersley said this creates a major opportunity for the company’s core brands to continue reaching new and existing consumers.
Meanwhile, Molson Coors’ core brands continue to turn in the off-premise:
Coors Light, Miller Lite and Coors Banquet are all growing dollar and volume share of the industry, according to Circana.
- Coors Light picked up more than a full share point of industry volume so far this year, per Circana; more than any other beer brand in the total market. Miller Lite and Coors Banquet are growing share of total beer, as well.
“In the latest four weeks, that share growth is accelerating compared to the trends we saw in the fourth quarter of 2023,” Hattersley said.
That’s in addition to Molson Coors’ industry-leading performance in the on-premise in 2023, where it grew more dollar share of the channel than any other U.S. brewer – more than twice the growth of the No. 2 competitor. Coors Light and Miller Lite each grew more dollar share in the on-premise in the fourth quarter than any other brewer did as a total business.
THE BOTTOM LINE
The gains on shelf are just one result of Molson Coors’ strong performance.
Hattersley reiterated that the company is positioned to continue growing in 2024, citing the strength of its core portfolio, innovation coming from its Beyond Beer portfolio, smart, strategic marketing investments and its increasingly premiumized lineup of products globally.
“The moves we are making in the high-end of our portfolio give us a clear path for growth, whether that is in beer or Beyond Beer,” he said. “The momentum of our core brands, and the space gains we expect at retail this year, also give us a clear path for growth. And the ways we have enhanced our whole organization give us a clear path for growth as well.
Our proven approach and the results to date give us an immense amount of confidence in Molson Coors’ present and future.”
This article contains forward-looking statements within the meaning of the U.S. federal securities laws – please click here for the full Molson Coors’ forward-looking statement disclaimer.
0 comments (click to read or post):
Post a Comment
Please leave a comment...I do moderate each comment so it may not appear immediately...and please be nice! You can also comment using Disqus (below) or even comment directly on Facebook (bottom).