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


(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?

Leave a Reply