Molson Coors' bigger bets on marketing pay off as sales grow
Comment of the Day

May 04 2023

Commentary by Eoin Treacy

Molson Coors' bigger bets on marketing pay off as sales grow

This article from Industry Dive may be of interest. Here is a section: 

Molson Coors cited marketing initiatives as one reason for its strong Q1 results in a company blog post. A strong premionization program is named as another highlight.

The alcohol company’s Q1 sales grew 5.9%, its eighth consecutive quarter of growth, for a total of $2.35 billion. On a call with analysts, executives said the company will increase marketing investments this year compared to 2022 to support further growth.

Core brands Coors Light and Miller Lite each saw double-digit revenue growth in the first quarter, with executives saying that the brands benefited from a Super Bowl ad campaign, the company’s first in 30 years. Independent research shows the positive sales trend for these brands is accelerating in Q2 while a major competitor, Bud Light, takes a big sales hit.

Eoin Treacy's view

The controversy around Bud Light’s marketing campaign hit earnings by 1% in less than three weeks and the company is in full damage control mode. On my trip to London last week, I saw at least three different locations giving Bud Light away for free. The share posted an upside key reversal today to confirm near-term support, which suggests investors don’t see lasting damage from the negative reception of its ad campaign.  

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