MillerCoors in Q3: Miller brands down, Tenth and Blake brands up big

MillerCoors-tm

(Denver, CO) – MillerCoors released its Q3 2011 earnings today. As always, I’ve bullet-pointed everything for easy skimming.

On overall company health in Q3:

- Net income down 14%

- “Domestic sales-to-retailers (STRs) were down 2%, a slight improvement from the second quarter. Domestic sales-to-wholesalers (STWs) were down 4.7%. The STW decline was higher than the STR decline due to the timing of shipments year over year.”

- Comfortable with current level of pricing/discounting and doesn’t see barley costs impacting price in short-term thanks to contracts in-place

- There has been lots of discussion internally around trend of spirits taking sales away from big beer brands

- Early Q4 numbers tracking below Q3 but a lot of variables at play

On Tenth and Blake Beer Company:

- Up 17.2%, driven, in large part, by 24% increase in Blue Moon Brewing sales and increase in Leinenkugel’s sales

- Up 50% in Blue Moon and Leinenkugel’s seasonal program, highlighting success of Blue Moon Summer Honey Wheat and Leinenkugel’s Summer Shandy (latter up 80%)

- CEO, Tom Long, noted that the company had only begun to scratch the surface on the seasonal program

- Peroni Nastro Azzurro delivered 8% growth for quarter, says it is third-fastest growing import in U.S.

- Expects Tenth and Blake to grow along with index of craft category for foreseeable future

- Plans to re-double efforts in growing Tenth and Blake brands in 2012 and is open to re-scaling operations from other brands to Tenth and Blake brands as needed

On Miller Lite:

- Down mid-single digits

- “Miller Lite will evolve its taste messaging and launch new innovations in 2012, and focus on football [specific NFL team partnerships and college football] for the remainder of 2011″

On Coors Light:

- Up low-single digits

- “Coors Light will continue to drive Super Cold Activation and focus on football and Hispanic Soccer for the remainder
of 2011″ [Can't forget about NHL!]

On MGD & MGD 64:

- Double-digit decline by Miller Genuine Draft and MGD 64

- “MGD 64 will be repositioned as Miller64 with a new look, supported with TV and digital media”

On other brands:

- Mid-single-digit increase by Coors Banquet

- Miller High Life declined mid‐single digits

- Keystone declined mid‐single digits

One thought on “MillerCoors in Q3: Miller brands down, Tenth and Blake brands up big

  1. Since Molson/Coors partly own a beer store in Ontario where we must buy our beer, this is indeed good news. How’s your monopoply now Molson/Coors?

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