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MOLSON COORS BREWING CO

THREATS (3) Competition within the Alcoholic Beverages Industry – Wines & Spirits ■■

Even with growth in craft beers, beer consumption in the US is still in decline as a percentage of overall alcohol beverages as popularity of wines and spirits gathered pace in recent years. In 2017, volume of “Other Alcohol Beverages” exceeded that of Beer for the first time.

■■

Molson Coors and its peers are countering declining volumes by increasing prices and premiumisation. US Bureau of Labor Statistics data shows beer prices rose +42% between 2000 and 2017, compared with +11% for wine and +19% for spirits**. However, the question arises – “How long before the

brewers cannot raise prices fast enough to offset the declining volumes or when abovepremium beers become direct competitors of wines and spirits?”

BEER VS OTHER ALCOHOL BEVERAGES ( B OLUME US MARKET ) 55% 50% 45% 40% 35% 30%

2012

2013

2014

Beer

2015

2016

2017

Other alcohol beverages

* Data Source: Molson Coors 2017 Annual Report and Beer Institute ** https://www.wsj.com/articles/americas-long-love-affair-with-beer-is-on-the-rocks-1533133041

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Profile for Richard

Elevation Capital Research Annual 2018  

Elevation Capital Research Annual 2018