Canada: Molson Coors Brewing Co. to boost promotion of higher-priced brands as discount sale slow
Molson Coors Brewing Co., the maker of Coors Light and Canadian, plans to increase promotion of higher-priced brands like Creemore Springs as sales growth for discount beer slows, Bloomberg communicated June 14.
The world's fifth-biggest brewer has ``stabilized'' its market share in Canada at about 41 percent, after losing sales to low-priced beermakers like Lakeport Brewing Income Fund, said Kevin Boyce, 50, chief executive officer of the company's Canadian unit.
“By and large, the brands that are growing are the traditional beer styles,'' like Creemore, Boyce, 50, said in a June 9 interview in Montreal.
Molson Coors, based in Golden, Colorado, plans to boost promotion of brands such as Creemore Springs, Rickards White draught, and imports like Heineken to grab market share.
Creemore is only sold in Ontario, although Molson Coors plans to begin selling it in the neighboring province of Quebec this year. Distribution may be expanded to other Canadian provinces, spokeswoman Sylvia Morin said.
Coors Light and Heineken, which Molson sells in Canada, are among the best-performing brands for the company, with sales rising at “double-digit'' rates, Boyce said.
Creemore Springs, an Ontario brewer bought by Molson Coors in April 2005, gives the company a Canadian-made brand to compete in the premium end of the market, he said. A 12-bottle case of Creemore costs C$22 ($19.76), according to the Web site of The Beer Store, the brewer-owned retailer in Ontario. A case of Canadian, Molson's main brand, sells for C$17.95.
To compete at the discount end of the market, Molson is using its Carling brands in Ontario against Lakeport Brewing.
“It's a meaningful segment and we want our fair share,'' Boyce said.
Molson lost market share in the last 18 months at about half the pace of declines in 2004, when market share slipped to 42.4 percent, according to company figures.
Boyce, a former head of Unilever NV's Canadian unit, expects more mergers and acquisitions in the brewing industry. He declined to comment on Canadian rival Sleeman Breweries Ltd., which is considering a sale.
Shares of Molson Coors fell 7 cents to $67.85 in 10:15 a.m. New York Stock Exchange composite trading June 14. The stock has risen about 1 percent this year.
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