just On Call - Molson Coors needs more premium brands - CEO
Innovations like Carling Zest will help increase profits, Molson Coors says
Molson Coors does not have enough premium brands and will push ahead with innovations to help drive profits, the brewer's CEO has said.
Coors' sales increased by 11.9% while operating profits only climbed by 3.8% in year-to-date results released today (7 November). In a call with investors, president & CEO Peter Swinburn said the company is responding with mixed drinks such as the UK's Carling Zest to narrow the profits gap.
“Most of our portfolio is skewed towards mainstream and we suffer from not having enough exposure to premium,” Swinburn told investors in a call. “What you'll see in all of our innovation activity in the past couple of years, we're very much skewed towards premiumising the portfolio.”
As well as the citrus-flavoured Carling Zest, released earlier this year, Coors Light Ice Tea is also an example of Molson Coors' premiumisation pipeline, Swinburn said.
“This is how we will deal with (profits),” he said.
Swinburn also said the brewer's recent announcement it will merge central Europe with its UK & Ireland operations was “a good news story” and was not driven by underperformance in the regions.
“It is a standard move for most businesses to have a European platform,” he said.
“We thought this would take longer to happen so really this is a good news story because the integration has gone much more smoothly than we expected.”
In this month's management briefing, Ben Cooper looks at the alcoholic drinks industry's attempts to reduce alcohol harm and promote responsible consumption. Part one of this four-part briefing consid...
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