Molson Coors Brewing, the giant brewing conglomerate that controls a sizable share of the American and Canadian beer markets, reported today a reasonably good financial quarter for the three months ending September 30, 2013 as disclosed by Fox Business.
Molson Coors earned $1.45 per share, beating estimates from Wall Street experts who expected $1.39 per share. Total revenues, however, fell 2% to $1.17 billion and were below analysts’ estimates of $1.21 billion. This shows that, while operating more efficiently, Molson Coors is still having problems with sales growth among many key brands.
On the positive side of the sales ledger, Molson Coors has enjoyed great success this quarter with its Redd’s Apple Ale, Leinenkugel, and Blue Moon products. Sales growth for these products has been encouraging and without them, Molson Coors would be in noticeably worse financial shape. Molson Coors top management likes what it sees and recognizes the important contribution from these brands.
“Led by Redd’s, Leinenkugel’s and Blue Moon, our strategy to grow share in the high-margin and fast-growing above premium space is driving excellent sales mix,” said Miller Coors CEO Tom Long.
With the solid sales results from Redd’s Apple Ale, Leinenkugel, and Blue Moon, is it possible that Miller Coors is turning the corner and will pursue more craft beer strategies? It is highly possible, but I wouldn’t look for anything major. After all, Molson Coors has already announced that it will continue to invest in its core brands and try to improve the slumping sales of Coors, Coors Light, and other products. But it is difficult to ignore the craft and semi- craft segments of the Molson Coors portfolio, which have enjoyed double digit growth globally.
Investors seem satisfied overall with Molson Coors financial performance. Its stock, traded under the ticker TAP, is up following the announcement and its current selling price of approximately $55 per share is almost 29 percent higher than its $42.79 closing price at the end of 2012.