Molson Coors sales ail as drinkers head for discounts

[mr x]

http://thechronicleherald.ca/Business/1256401.html" onclick="window.open(this.href);return false;

Molson Coors Brewing Co. said Tuesday its Canadian beer volumes fell in the second quarter as the weak economy pushed consumers to shop for cheaper brands and alcoholic alternatives.

Sales to retailers decreased by 4.2 per cent, more than the 2.4 percentage point drop felt by the industry.

Molson Coors gave back half of its 1.5 per cent Canadian market share gains last year, driven partially by tougher comparisons from when it added new brands and supported marquee names in its portfolio such as Molson Canadian.

Brewers chasing volumes have reduced prices through normal discounting across the country.

"In Canada we are seeing downtrading. The third brewers mainly from a value perspective tend to be doing better and are increasing their market share and that’s undoubtedly a trend," CEO Peter Swinburn said in an interview.

Wine and spirit sales have also outperformed beer.

Molson Coors has tried to compete by offering new citrus-flavoured beers such as Molson Canadian 67 sublime and Miller Chill Lemon.

"We’re trying to satisfy those occasions that wines and spirits currently satisfy and there’s no beer alternative and we’re trying to step into that space," he added.

The brewer’s profits decreased six per cent in the second quarter as the weak economy, unemployment and higher fuel costs drove Canadians to restrict their beer consumption.

"What we saw in the second quarter was a continuation of the economic pressures that we felt recently," Molson Coors Canada president David Perkins said during a conference call.

"Certainly gas prices and competition from other alcoholic beverages are putting pressure, and weather was a factor in the quarter as well."

[jeffsmith]

Wow, it's amazing how completely clueless they are.

[mr x]

Wade Keller was on CBC radio yesterday afternoon whining again...

[jeffsmith]

I can only imagine. The navel-gazing that goes on in these massive beer companies is ridiculous. If they'd stop and look around at what's going on in the world of brewing (home, craft, micro, whatever) they might be able to get on the path to fixing things. Use fresher ingredients, give beer a bit of flavour, and not some lime extract dumped into the swill at bottling…

It's just amazing to me that BMC/Labatt/Molson are spouting off in the media that the "beer industry" is in so much trouble, etc. when beer is a more popular beverage now than it has been for years, at least in my lifetime.

All right, rant over, your normal programming will resume shortly.

[akr71]

The Craft/Micro market is still seeing double digit growth (or close to it) and beer sales in general are declining. The obvious course of action is to put out more and more fizzy yellow water with the extract du jour.

[Tim Gregory]

How about this one:

http://ca.news.yahoo.com/budweiser-beer ... 46487.html" onclick="window.open(this.href);return false;

Bud sales are down because of rain in Brazil?

[mr x]

That's hilarious. Budweiser needs more red...

[derek]

And while the big brewers claim they're losing market to discount beers:

Brewers Association reports craft beer volume up 14% in 1st Half 2011

I guess it's good they've got their heads so far up their asses - if they don't realize who their competition really is, they won't want to buy them out.