Dive Brief:
- Molson Coors saw $16.6 million in net profits in its third quarter, following a net loss last year of $34.4 million.
- Molson Coors gets all revenue out of the U.S., plus 42% of MillerCoors profits. MillerCoors is the joint venture between it and SABMiller. Net sales dipped 3.4% due to low demand for Coors Light.
- The company is expected to try and take SABMiller's stake in MillerCoors, following SABMiller and Anheuser-Busch InBev's agreement in principle to merge.
Dive Insight:
Molson Coors can put new management in place with a control switch, and additionally can make the first and last bid for the stake. Reuters points out this could scare away others that might try and bid.
The company is also shifting focus to craft-style brews and premium beers. The craft market is seeing strong growth, and larger companies are taking notice.
MillerCoors recently announced its acquisition of its first craft brewer, and Anheuser-Busch InBev has announced several craft beer acquisitions.
The retail value of beer in the U.S. is $101.5 billion, and craft's share is $19.6 billion.
