US/CANADA: Molson Coors prepares US$250m saving plan
Molson Coors is looking to make savings of around US$250m over the next three years.
A spokesperson for the North American brewer confirmed the figure, unveiled at its annual investor day earlier this week, when contacted by just-drinks today (7 March). "Molson's primary objective is to build its brands," the spokesperson said. "To finance that, you need to look at saving money in your organisation."
The spokesperson identified three separate areas in which Molson Coors is looking to make the savings. Firstly, in the global supply chain, the brewer hopes to save up to $175m. "We need to look at doing things globally rather than locally," the spokesperson said. "That would range from standardising our packaging to identifying and introducing best practices."
Secondly, the company plans to save around $48m in 'general and administrative'. Earlier this year, up to 100 jobs were eliminated in Canada as part of this project, making a saving of $11m. Finally, the spokesperson highlighted what he called "the concept stage".
"We're looking at saving around $27m in this area. There are some big ideas that we've got to think through. We're throwing ideas around, but nothing has been vetted yet." When asked to elaborate, the spokesperson added: "These will become clear over the next two years."
The spokesperson moved to distance the savings plans from talk of cutting staff numbers. "A lot of this isn't about job losses," he said. "It's more about doing things better."
Last month, the North American brewer saw Q4 earnings leap to $99.2m, compared to $22.4m a year earlier. Sales for the quarter, which benefited from an extra selling week, rose by 10.6% year-on-year to $1.53bn.
Molson Coors has confirmed the amount of costs it will record from the closure of a brewery in Canada earlier this year....
Molson Coors Brewing Co. has formed a new unit to focus on developing high-end beers in the US, according to reports....
Molson Coors has posted a strong set of first half figures, despite tougher business conditions in the UK....
Molson Coors has approved a two-for-one split of the company's outstanding Class A and Class B common shares....
Molson Canada is set to close one of its breweries in the country....
Miller Brewing Company has announced that its Hispanic agency of record for its Miller Lite brand will be Lopez Negrete....
Coors Brewing Company, the US subsidiary of Molson Coors Brewing Company has announced that it has accepted and purchased US$625m aggregate principal amount of its 6.375% Senior Notes due 2012 that we...
US investment bank Goldman Sachs has warned that top brewers in the US will be facing tough conditions for the foreseeable future....
- SABMiller in Cent'l & E Europe - What is for sale?
- A-B InBev and its SABMiller divestments - Focus
- Where does AB InBev see the future of beer?
- Is the wine industry confusing its consumers?
- Are consumers getting tired of consuming?
- AB InBev to sell SABMiller Cent'l, E Europe assets
- Private equity poised for SABMiller Europe buy?
- Remy Cointreau names new Travel Retail exec
- Leonardo DiCaprio joins Runa drinks board
- Pernod Ricard to widen Our/Vodka sales reach
- Global Scotch whisky insights - market forecasts, product innovation and consumer trends
- Global travel retail insights - market forecasts, product innovation and consumer trends
- Global non-Scotch whiskies insights - market forecasts, product innovation and consumer trends
- Carbonates in India
- Consumer and Market Insights: Spirits Market in the US