Molson Coors Beverage Company (TAP-A)

History and Background

Molson Coors was formed in 2005 through the merger of Molson and Coors. Molson was founded in Montreal in 1786 and Coors in Golden, Colorado in 1873. The company has grown through acquisitions and brand development to become a major global beverage company.

Core Business Areas

• Americas: Production, marketing, and sales of beer and other beverage products in North and South America. Key brands include Coors Light, Miller Lite, Molson Canadian.
• EMEA & APAC: Production, marketing, and sales of beer and other beverage products in Europe, the Middle East, Africa and Asia Pacific. Key brands include Staropramen, Carling, Cobra.
• Beyond Beer: Focuses on expanding Molson Coors' portfolio beyond traditional beer, including hard seltzers, ready-to-drink cocktails, and non-alcoholic beverages.

Leadership and Structure

The CEO of Molson Coors is Gavin Hattersley. The company is structured with regional presidents overseeing operations in the Americas and EMEA & APAC. The corporate headquarters are located in Chicago, Illinois.

Key Offerings

• Coors Light: Light lager beer. It is one of the top-selling beers in North America. Competitors include Bud Light, Miller Lite. Market share is within the top 3 of light beers in the US. Revenue from the Miller Coors brands including Coors Light, Coors Banquet and Miller Lite was $2.8 billion in 2023.
• Miller Lite: Light lager beer. It is a leading light beer brand in the United States. Competitors include Bud Light, Coors Light. Market share is within the top 3 of light beers in the US. Revenue from the Miller Coors brands including Coors Light, Coors Banquet and Miller Lite was $2.8 billion in 2023.
• Molson Canadian: Canadian lager beer. A popular beer brand in Canada. Competitors include Labatt Blue, Alexander Keith's.
• Simply Spiked: A spiked juice drink with a range of flavors. Competitors include Truly, White Claw, High Noon. In 2023, Simply Spiked Lemonade became the #1 new flavored alcohol beverage (FAB) launch.

Industry Overview

The alcoholic beverage industry is characterized by intense competition, evolving consumer preferences, and regulatory complexities. Trends include the growth of craft beer, hard seltzers, ready-to-drink cocktails, and non-alcoholic beverages.

Positioning

Molson Coors is a major player in the global beer market, with a strong portfolio of mainstream beer brands. It is also expanding into the beyond beer category to diversify its revenue streams and appeal to changing consumer tastes.

Total Addressable Market (TAM)

The global alcoholic beverage market is estimated at over $1.6 trillion. Molson Coors is well-positioned to capture a share of this market, particularly in the beer and beyond beer categories. They are actively expanding into new segments and geographies to grow their share.

Key Competitors

• BUD
• STZ
• DEO

Competitive Landscape

Molson Coors faces intense competition from larger players like Anheuser-Busch InBev (BUD) and Constellation Brands (STZ), as well as numerous smaller craft breweries. Molson Coors competes on brand recognition, price, and distribution. The company is focused on differentiating itself through innovation in the beyond beer category.

Clearly Kombucha

• Year: 2018
• Acquisition Price (USD millions):
• Strategic Rationale: Expanded Molson Coors' beyond beer portfolio with a healthy beverage option.

Barkeep's Friend

• Year: 2023
• Acquisition Price (USD millions):
• Strategic Rationale: Barkeep's Friend will operate as a separate entity within Molson Coors, and the transaction is expected to support the company's growth in the non-alcohol segment.

Historical Growth: Molson Coors has experienced moderate growth in recent years, driven by acquisitions and innovation. The company is focused on expanding its presence in the beyond beer category and emerging markets.

Future Projections: Analysts project moderate revenue growth for Molson Coors in the coming years, driven by strong pricing power and the expansion of its beyond beer portfolio. Earnings per share are expected to grow at a faster pace due to cost savings initiatives.

Recent Initiatives: Recent initiatives include the launch of new beyond beer products, such as Simply Spiked, strategic acquisitions to expand into new markets, and cost optimization programs.

Molson Coors is a major player in the global beverage industry, with a strong portfolio of beer brands and growing presence in the beyond beer category. The company faces intense competition but is well-positioned to capitalize on growth opportunities in emerging markets and new beverage segments. Key challenges include adapting to changing consumer preferences and managing regulatory complexities. Strong performance is driven by cost optimization programs and expansion into new growth categories. Watch out for shifts in consumer drinking habits which could impact traditional beer sales.

Data Sources:

• Molson Coors Investor Relations
• SEC Filings
• Industry Reports
• Company Press Releases

Disclaimers:

This analysis is for informational purposes only and does not constitute financial advice. Market conditions and company performance can change rapidly. Consult with a qualified financial advisor before making any investment decisions.