On Wednesday, Molson Coors announced plans to move its North American headquarters from Denver to Chicago, where subsidiary MillerCoors is based. The company also plans to cut between 400 and 500 jobs.
Additionally, Molson Coors Brewing Co. will change its name to Molson Coors Beverage Co., effective January 2019, as part of efforts to grow beyond beer with hard seltzer, cider, spiked coffee, canned wine, and so on.
Although the company is investing in its legacy brands, recently launching new ad campaigns for Coors Light and Miller Lite, and partnering with the likes of the Jonas brothers, both of those brands are slipping. Molson Coors’ sales declined 3.2 percent in the third quarter, and shares slipped to $1.86, a loss of $402.8 million, the Chicago Tribune reports.
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“Our company makes some of the world’s greatest beers and our iconic beers have stood the test of time,” Gavin Hattersley, Molson Coors president and CEO, said. “But as the world around us changes … our business performance is lagging.”
Innovation is the new stability. Molson Coors has the cash to try to revitalize the brands falling out of favor. It also has the resources to create new products and see what sells. Today’s consumers are unpredictably promiscuous. By continuing to innovate, maybe they’ll find the audience they’re looking for.
Boston Beer Is Back
Boston Beer released its first third-quarter earnings report with combined results since announcing it acquired Dogfish Head Craft Brewery in May 2019, and the results are looking good.
Boston Beer’s net revenue for Q3 reportedly grew 23.3 percent to $378.5 million, and net revenue year-to-date increased 23.1 percent to $948.5 million. This growth comes not from Samuel Adams, but from Truly Hard Seltzer, Twisted Tea, and Dogfish Head, according to Boston Beer CEO Dave Burwick.
What Boston Beer lacked in an exciting beer portfolio, the brand is making up for with Dogfish Head’s innovative beers, as well as by investing in its hard seltzer brand and other “beyond beer” products. It’s impressive — almost strange — to see a national brand trying new things and actually succeeding at them. It’s strange, too, that the future of the beer industry may rely on diversification into beverages like hard seltzer and tea. But if that’s the way it’s gotta be, it’s better than no good beer at all.
Founders Closes Detroit Taproom, Digs Deeper Into Hole
On Friday, Oct. 25, 2019, Founders Brewing announced the indefinite closing of its Detroit taproom, and the cancellation of its annual Canadian Breakfast Stout (CBS) release. A statement from co-founders Mike Stevens and Dave Engbers published on Friday morning cited safety concerns for employees and referred to an ongoing lawsuit between Founders and former employee Tracy Evans, who sued the company for racial discrimination last year.
The lawsuit is about much more than a disagreement between a brewery and former employee. Read VinePair’s in-depth coverage of the legal dispute, and its implications for the craft beer industry, here.