- First-quarter sales rise 8.2% to US$2.35bn as brand volumes dip 2.1%
- Ahead of 2022’s +7% growth rate so far
- Coors Light and Miller Lite up by double digits in US over three months to end of March
- Sales in ‘Americas’ rise 6.5%, ‘EMEA & APAC’ +16.1%
Price increases last year were the main driver for Molson Coors Beverage Co, with first-quarter sales setting a high bar for the full year.
As volumes for its brands in the three months to the end of March dipped by 2%, the group reported an 8% increase in sales for the period. Pricing was the main driver, thanks to “several increases” that were implemented in 2022.
In beer, the company noted that its Coors Light and Miller Lite flagships delivered a collective sales rise of double digits in the US. Meanwhile, by way of highlighting its strategy to expand beyond beer, Molson Coors confirmed the intention to grow further in spirits: Bourbon brand Barmen 1873, which debuted just over a year ago, should be present in 25 US states later this year.
The group also noted the addition of a spirits-based variant to Topo Chico's alcohol portfolio in recent weeks as well as the strengthening of its tie-up with The Coca-Cola Co, which owns the Topo Chico brand name, through the Peace Hard Tea 5% ABV flavoured malt beverage [FMB], unveiled in September.
On a regional basis, Molson Coors flagged a weaker beer category more broadly in the US, where volumes were down 1.2%. 'Latin America' is suffering similarly as volumes fell 12.4% "largely due to industry softness in some of our major markets in the region". Thankfully, 'Western Europe' has absorbed the price increases of recent months, with sales in the region offsetting the impacts of inflation and the war in Ukraine on 'Central & Eastern Europe'.
For the full year, the company expects its sales to rise by low single digits, while "remaining mindful", according to CFO Tracey Joubert, of "beer industry softness".
Molson Coors Beverage Co's official Q1 results announcement.
Company presentation on recent performance.
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