(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
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?