Dive Brief:
- Molson Coors named Chief Strategy Officer Rahul Goyal as its next president and CEO effective Oct. 1. He replaces Gavin Hattersley who announced in April that he planned to retire later this year.
- Hattersley will stay in an advisory role through the end of 2025 to “ensure a smooth transition,” the company said in a statement.
- Goyal has worked with Molson Coors for 24 years, holding executive roles in technology, finance and strategy. He has also been instrumental in the company's expansion into nonalcoholic beverages and energy drinks, the company said.
Dive Insight:
Molson Coors has spent the last several years aggressively diversifying its product line into beverage categories beyond beer. Goyal’s hire could signal the Chicago-based company intends to double down on that strategy with a leader who played a key role in designing it.
Molson Coors credited Goyal for recent deals with Coca-Cola and nonalcoholic carbonated mixer Fever-Tree as well as the purchase of a majority stake in energy drink Zoa.
The U.S. drinking rate has fallen to a new low, prompting companies to think "beyond beer" to insulate themselves from potential losses. Adding more nonalcoholic options keeps consumers in the Molson Coors portfolio and offers more drinking occasions throughout the day.
David Coors, Molson Coors’ chairman, said in the announcement that Goyal had strong institutional knowledge and has an eagerness to “bring new thinking” that positions the company for future growth.
“After conducting an extensive and thorough CEO succession process that included evaluating internal and external candidates, it was clear that Rahul brought the right experience and vision that we believe is needed to drive the next phase of growth for Molson Coors,” Coors said.
Molson Coors’ diversification strategy into nonalcoholic beverages has been viewed favorably among industry analysts.
In an August client note, Dan Su, equity analyst at Morningstar Research Services, said the shift adds more growth prospects, especially as premium beer sales decline in the U.S.
In its most recent earnings report, Molson Coors reported a 1.6% net sales decrease.
