MillerCoors is investing in Coors Light

MillerCoors is investing in Coors Light

MillerCoors may cut SKUs from its value portfolio as fresh investment in premium brand Coors Light finds success.

Year-to-date results yesterday showed flat sales and profits for MillerCoors as below-premium brands such as Miller High Life and Keystone under-performed. The US brewer's interim CEO Gavin Hattersley said his goal is to stop volume drops and target growth for 2019, a process that “requires us to transform our portfolio more into the above-premium and get really specific about what we’re doing with our economy brands”.

Hattersley said simplifying the lower end of MillerCoors' portfolio “is a key focus area for us”, adding that it is important for the company to have “a very clear positioning and message” behind Miller High Life and Keystone.

Mark Hunter, CEO of Molson Coors, which operates the MillerCoors JV with SABMiller, also suggested that MillerCoors will cut SKUs from its below-premium category, adding that the JV has already started the process of “simplifying” its portfolio.

Meanwhile, the company is ploughing “significantly more money” into Coors Light, leading to market share gains for the premium brand in Q3 despite a sales decline, according to Hattersley. A switch in advertising agency also helped, he said.  

“Coors Light’s performance in the third quarter was the best that we've had for quite some time," Hattersley added.