Molson Coors is one of the World’s largest brewing operations and it produces some of the best- selling beers on the planet. But new Molson Coors CEO Mark Hunter is still ever wary of the challenges his brewery faces and the changes that need to take place, according to an April 5, 2015 news report from Bizjournals.com
During a recent earnings call with investment analysts, Hunter repeatedly spoke of Molson Coors immediate goals, using words such as “headwinds” and “challenges” as he spoke. Hunter is fully aware of the solid gains in the craft beer segment and knows that they pose a threat- a threat that may be small for now but is only likely to grow in the coming years.
According to the Denver Post, Hunter says Molson Coors will concentrate more on craft beer as it attempts to focus on “the needs and preferences of our customers.” Core macro- brewed brands are not selling the way they once did and Hunter realizes that the movement to craft isn’t going away soon.
Molson Coors already brews its semi- craft Blue Moon line of beers and while Blue Moon doesn’t enjoy the respect afforded to the small batch craft beers brewed across the United States, it is at least an attempt at craft beer or something like it. With Blue Moon, Molson Coors at least has its foot in the craft beer door. It could continue the Blue Moon line with even more flavorful beers or branch out into something completely different, something more in line with what craft beer snobs consider a beer true to the craft beer title.
However, a more likely route for Molson Coors is a buyout. Anheuser- Busch has already gobbled up a few craft breweries and there is no reason Molson Coors cannot do the same. The Denver Post reported Hunter saying that his business has a strong interest in “craft acquisitions.” It makes sense from a business perspective, since it is much easier to take over a company that is already established and has well- liked beers than to start up a new brand from scratch.
Whatever Molson Coors CEO Mark Hunter decides to do, one thing is certain: Big beer is flat, and if craft beer presents at least partial relief to the fizzled out big brewery woes, then buyouts are likely solutions. Keep an eye on some of the successful players in craft beer, including those in your own hometown. They might be wearing the silver bullet logo before you know it.