Weak consumer demand for beer in the US weighed on MillerCoors in the third quarter of 2010, but cost savings boosted profits for the SABMiller and Molson Coors-owned brewer.

MillerCoors saw beer volume sales fall for the three months to the end of September by 2.7% to to 17.9m barrels compared to the same period of 2009 and by 3.76% on Q3 2008, it said today (3 November).

Go deeper with GlobalData

Premium Insights

The gold standard of business intelligence.

Find out more

Related Company Profiles

View all

Lower excise taxes and lower costs helped the US-based brewer to eke out a 0.3% increase in net sales for the quarter, to $2.015bn. MillerCoors’ sales performance underlines the ongoing weakness on the US beer market and has forced the firm to focus more greatly on cost savings.

The brewer achieved $83m in synergies during the quarter. The brewer said that $56m of this was part of the planned integration of SABMiller and Molson Coors operations in the US, but a further $27m of “additional cost savings” was achieved by cutting media, transport and raw materials spend.

Savings boosted profits for the Miller Genuine Draft brewer, which is 58%-owned by SABMiller and 42%-owned by Molson Coors. Operating profits leapt by 38% to $320.8m for the quarter, while net profits jumped by 36% to $313m.

MillerCoors’ CEO, Leo Kiely, said that he saw reasons for optimism in the brewer’s sales performance. “It is still a tough market environment, but we are encouraged by our recent premium light trends and the continued strong momentum of our Tenth and Blake portfolio,” he said.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Coors Light and Miller Lite lager volumes fell by low single-digits for the quarter, while MGD 64 fell by double-digits. 

For the first nine months of 2010, the brewer’s net sales were flat, slipping by 0.2% to $5.85bn. Net profits jumped by 23% to $912.8m.

Stay informed for just £1! *

Get access to unbiased and data-driven news with a subscription to Just Drinks.

What’s included in your subscription:

  • Unlimited access to Just Drinks content including daily global news, in-depth analysis, and interviews with C-suite executives
  • Unbeatable coverage of categories from beer, wine and spirits to soft drinks and hot
    beverages
  • Unrivalled drinks industry comment from Dean Best, Jessica Broadbent and leading sector specialists

Have a Subscribtion Sign in

Get help with subscribing or signing in

*30-day digital subscription for £1. Available to new subscribers only