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.
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