**Molson Coors Reports Strong Growth Amid Bud Light’s Declining Market Share**
**Molson Coors Capitalizes on Bud Light’s Missteps**
Molson Coors Brewing Company has experienced significant growth in its net revenue following Bud Light’s controversial promotion with a transgender influencer. The company reported its best quarter of net revenue since the merger of Molson and Coors in 2005. This unexpected growth has led Molson Coors to hike its full-year guidance.
**Bud Light’s Declining Volume**
CEO Gavin Hattersley expressed surprise at Bud Light’s decline in volume, stating that their largest competitor’s largest brand experienced a nearly 30% decrease in the quarter. Bud Light, which once captured more total industry dollars than Molson Coors’ Coors Light and Miller Lite brands combined, now trails behind its rivals. This shift in the market has had a seismic impact on Molson Coors.
**Positive Outlook for Molson Coors**
The significant impact of the market shift has prompted Molson Coors to revise its expectations for global underlying income before tax. Previously expecting low single-digit growth, the company now anticipates a 23%-26% increase this year. Molson Coors also issued a more bullish forecast for sales and cash flow, citing their brands’ continued momentum.
**Anheuser-Busch’s Failed Attempts to Counter Bud Light Boycott**
Anheuser-Busch CEO Brendan Whitworth’s efforts to counter the Bud Light boycott by slashing prices during summer holidays have proved ineffective. Coors Light and Miller Lite have not seen a decrease in demand despite the competitive pricing moves. Molson Coors continues to gain market share.
**Shelf Space Reset**
Molson Coors CEO Gavin Hattersley confirmed suspicions that beer retailers are reallocating shelf space, allocating fewer square feet to display Bud Light beer. This change is expected to have a sustained impact on Bud Light’s market share. Hattersley acknowledged this opportunity and plans to spend an additional $100 million in marketing to steal more market share from Anheuser-Busch.
**Investing in Marketing**
Molson Coors is committed to investing $100 million in marketing to further increase its market share at the expense of Anheuser-Busch. This decision comes at a time when Anheuser-Busch is experiencing layoffs while simultaneously running an expensive promotional campaign. Hattersley plans to provide further insights into Molson Coors’ long-term future at an upcoming strategy day in New York City.
Molson Coors has capitalized on Bud Light’s missteps and experienced significant growth in net revenue. Bud Light’s declining market share has provided an opportunity for Molson Coors to strengthen its position in the industry. By investing in marketing and stealing market share from Anheuser-Busch, Molson Coors aims to maintain its momentum and continue its growth trajectory.