Dive Brief:
- Molson Coors is considering new acquisitions to further expand its portfolio beyond beer and fend off a decline in alcohol sales.
- Newly appointed CEO Rahul Goyal said in an earnings call Tuesday that the Miller Lite owner is looking to fill gaps within its portfolio through new acquisitions, adding that the company will more likely look for opportunities in the “beyond beer space than the beer space.”
- Molson Coors has looked to expand into categories, such as energy drinks and nonalcoholic cocktails, to insulate itself from a downturn in beer sales. The company invested in nonalcoholic carbonated mixer Fever-Tree and upped its stake in energy drink Zoa.
Dive Insight:
Molson Coors is “moving with a sense of urgency and pace” to respond to declining beer sales and shifting consumer preferences, Goyal said during the call.
The company internally projected that the total beer market is down about 4.7%, though Goyal said this downturn is likely cyclical.
While a greater interest in better-for-you options and generations rethinking their alcohol habits has impacted sales, Goyal expects the macroeconomic conditions that exacerbated consumer sentiment in 2025 to improve next year.
“We recognize the volatility in the category this year, but we also recognize the things that we can work on within our team,” Goyal said.
Last month, Molson Coors announced it would cut 400 salaried jobs, a 9% reduction in the company’s corporate workforce. The restructuring also involved reshaping the executive leadership team and eliminated the chief commercial officer role.
The company plans to redeploy those savings into M&A, as well as investing in key brands and supply chain upgrades. Goyal said the company continues to look at “areas and opportunities” to augment its portfolio.
“In the beyond beer space, we probably need to be both creative and deploy capital to fill some gaps,” Goyal said.
Molson Coors is also focused on investing in marketing for its bigger brands. Despite the focus on nonalcoholic categories, beer remains a foundation of the business, Goyal said.
More beer giants are expanding their nonalcoholic business to become more well-rounded beverage companies.
Anheuser Busch’s recorded a 27% increase in revenue for no-alcohol beer, and its beyond beer profile in the third quarter, compared to less than 1% overall revenue growth.
In the third quarter, Molson Coors’ net sales decreased 2.3% year over year to about $2.9 billion.
