just On Call: MillerCoors to drop "non-core" economy labels, glass bottles
MillerCoors hosted an investors day yesterday
MillerCoors is to shake-up its low-margin beer category as it plans to dump its non-core brands and heavy glass packaging.
The Molson Coors and SABMiller US JV did not specify which labels will go, but said the move will allow it to focus on other economy brands such as Keystone Light and Milwaukee's Best Light. The company will also expand the Coors Miller High Life and Hamm's brands, it said during an investors day call yesterday (18 June).
“Our mantra is simplify and amplify,” said MillerCoors' president & CEO, Tom Long. “This is a great opportunity for us to reduce costs and inefficiencies in our network, and one way of doing that is by eliminating the non-core SKUs.”
MillerCoors also said an initiative to move from glass to PET bottles in the economy singles category is “very low risk” and will roll out across half of the US next year.
“We've tested the heck out of it,” MillerCoors CMO Andrew England said. “You can imagine the benefits to the distributor both in terms of saved fuel and saved spines in their workforce, notwithstanding the fact that glass also has a habit of breaking much easier than PET,” England added.
Last week, Long said he is looking forward to competing with Constellation Brands in the wake of the latter's takeover of sole US rights to Grupo Modelo brands including Corona.
After a lively year for our industry, Stuart Whitwell from Intangible Business takes a look at what the next 12 months could have in store for the beer and spirits categories....
- Pernod Ricard 's first-half results - Preview
- Pernod Ricard's H1 performance by region - Focus
- Heineken's FY performance by region - Focus
- Forget Baby Boomers at your peril - Consumer Trend
- Carlsberg's full-year performance by region
- Asahi Group lines up Grolsch, Meantime, Peroni buy
- Pernod Ricard targets US through unit, exec switch
- William Grant & Sons' Ailsa Bay - NPD
- Asahi Group to buy Grolsch, Peroni from SABMiller
- Half-year sales lift for Pernod Ricard
- Global travel retail insights - market forecasts, product innovation and consumer trends
- What Next for Beer and Brewers Following the MegaBrew Deal?
- Global Whiskey Market 2016-2020
- Emerging Drinks Industry Trends
- Global sparkling wine insights - market forecasts, product innovation and consumer trends research