Molson Coors boasts solid numbers in Q2

Despite U.S. and Canadian brand volumes dropping in its latest quarter, Molson Coors’ new quarterly report revealed impressive numbers, as the company continues to find success in Canada with its above premium and core brands.

Molson Coors is reporting its second-quarter net income rose to $427 million from $342 million in the prior year’s quarter. While marketing, general and administration (MG&A) expenses overall were down, Molson Coors reports that it boosted its marketing spend.

The company is “more nimble and efficient” in its marketing, says Tracey Joubert, the company’s chief financial officer, who touted the work of its in-house agency work.

Joubert says it expects MG&A to be lower in back half of the year, because of the company’s summer spend being higher than fall. However, she points out that Molson Coors “is looking to drive strong momentum in our brands,” that it will continue to invest behind its brands and that it has “the right tools to drive momentum.”

In Tuesday’s earnings call, president and CEO Gavin Hattersley said the company’s done a “nice job” executing on its core brand marketing. Hattersley added the company is finding success in Canada, noting that Coors Light is the number two brand in the country.

In Ontario, Hattersley notes that Coors Light and Molson Canadian are the number one and two brands, respectively.

Above premium is proving popular in Canada. The growth of this sector of the company is being driven by Vizzy and Coors Seltzer’s sales in Canada.

Meanwhile, the recent launch of Madri beer has been “very successful” and has grown revenue double digits globally.

“We believe Peroni could be a big brand,” Hattersley adds. It’s shifting to domestic production in the U.S., which lets it change pack formats to accommodate different customers and giving it more margin. The production move will allow it to reinvest in brand marketing for Peroni as well.

Molson Coors has repositioned Blue Moon Light and overhauled Blue Moon’s packaging, with marketing to come for the brand. The company adds that its “completely committed to reinvigorating this brand.”

Molson Coors also says it is “committed to innovating and scaling Beyond Beer,” and that flavour innovation is key to keeping pace with consumer demands.

Simply Spiked is now a $100 million dollar brand in two years. It has even “more runway,” Hattersley says.

“We are most certainly stronger than we were 16 months ago,” Hattersley adds.