just On Call - Molson Coors targets Coors Light Canada woes
Coors Light has seen challenges in North America
Molson Coors has said there is “more work to be done” on Coors Light in Canada despite a slight rally for the brand in the second quarter.
The brewer's Canada CEO, Stewart Glendinning, told analysts yesterday that Coors Light volumes decreased low single-digits in Q2, an improvement on past quarters for the brand, which has seen sales drop in North America. However, Glendinning warned it was losing share against rivals and that the “performance is still not satisfactory”.
The Canada head said the company will focus on improving in-store execution as well as ongoing marketing efforts.
“It's that last piece (marketing) where a lot of our effort is focused for the moment on, for the next round of copy that we hope to make even better than the last,” Glendinning said.
North America has been a difficult market of late for light beers. In February's FY results for MillerCoors, the Chicago-based SABMiller and Molson Coors JV, Coors Light sales fell by low-single digits, while Miller Lite saw a high-single digits sales drop.
Molson Coors, however, did hold out some optimism for Coors Light in Canada. CEO Peter Swinburn said on yesterday's call that volumes increased by low single-digits if added to those of pale lager Coors Banquet, which has seen some cannibalisation of Coors Light since it was introduced into Quebec last year. Swinburn added this did not let Glendinning "off the hook", referring to his Canada CEO.
Meanwhile, Swinburn said an autumn date has been set for a court to hear a contractual dispute between Miller Brewing Co (MBC), the Canadian unit of SABMiller, and Molson Coors. The case centres on an attempt by MBC to cancel Molson Coors' contract to handle its own brands in Canada.
In first-half results released yesterday, Molson Coors saw profits jump as its Europe and US units put in strong performances.
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