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Molson Coors is to withdraw Two Hats in the US, just a year after launching the flavoured beer brand.
MillerCoors launched Two Hats in February but has already decided to withdraw the beer
Two Hats, a 4.2% abv, citrus-flavoured beer aimed at younger consumers, was rolled out across the US in February. This week, Molson Coors' US unit, MillerCoors, said it will cease production, with the beer expected to exit the market in February.
Explaining the decision, MillerCoors said the move will allow the unit to focus on core brand Coors Light, which is under pressure in the US market. "Right now, we simply cannot get to profitable growth without significant improvement in Coors Light and without gaining a bigger piece of (the) above-premium (segment)," wrote MillerCoors' VP of national craft & innovation, Bryan Ferschinger, and president of sales & distributor operations, Kevin Doyle, in a note to employees and distributors.
In its most recent quarter, MillerCoors posted a 5% volumes decline alongside profit falls, dragging down overall performance for Molson Coors. The group said that investment would go to Coors Light, the number two US light beer behind Anheuser-Busch InBev's Bud Light, and Miller Lite. It also plans to invest further in the Arnold Palmer Spiked and Sol brands to stoke premium growth.
Molson Coors' quick U-turn on Two Hats could be a sign of an increasing willingness in the beverage industry to be more agile with new launches. Last year, The Coca-Cola Co CEO James Quincey said he wanted to take a "test-and-learn" approach to innovation.
"If they don't work, move on. If they do, then invest more in it," Quincey explained.
Sectors: Beer & cider
Companies: Molson Coors
