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OPPORTUNITIES (1) Growth Beyond Beer – Low-Alcoholic and Non-Alcoholic Beers ■■

As discussed in the threats section, health conscious consumers are turning to low-alcoholic and non-alcoholic beers. AB InBev predicts 20% of its production volume will be low-alcoholic and non-alcoholic beers by 2025.


Molson Coors is therefore broadening its portfolio to include a wider range of low-alcoholic and non-alcoholic beers (Alcohol Free Beers – “AFBs”) such as Coors Edge for consumers looking for healthier soft drinks or those consumers who cannot drink alcohol for religious reasons (Many of the Muslim-majority countries have alcohol prohibition). Interbrand suggests a strong parent brand can help to develop AFB, and we believe Molson Coors is in that position to develop strong AFB products within its portfolio.


One interesting fact about AFBs is that they will generate significantly more revenue versus traditional beers because there is no alcohol/excise tax to pay.

Growth Beyond Beer – Brewed, Fermented or Distilled ■■

Molson Coors has also expanded its portfolio by investing in diversified brewed beverages such as the Bhakti Chai tea company and Clearly Kombucha.

Growth Beyond Beer – Hard Sparking/Spiked Seltzer ■■

One fast growing segment is the hard sparking/spiked seltzer category. The drink is a carbonated sparkling water spiked with nearly 5% alcohol by volume. It is becoming popular due to its low carbohydrate, sugar and calorie counts. Research firm L2 noted recently that "With remarkable

revenue growth of over 400% in just 18 months, hard seltzer rode a wave of success throughout 2018"*. The Company's Henry's Hard Sparkling is one of the top five brands in the US that saw tremendous growth in recent years.



Profile for Richard

Elevation Capital Research Annual 2018  

Elevation Capital Research Annual 2018