Coors Light helps boost SABMiller joint venture
FTSE 100 brewer SABMiller reported a good showing from its joint venture MillerCoors, with Coors Light beer helping to drive sales.
FTSE 100 brewer SABMiller reported a good showing from its joint venture MillerCoors, with Coors Light beer helping to drive sales.
SAB, whose brands include Peroni Nastro Azzurro, Miller Genuine Draft and Grolsch, said revenues at MillerCoors had increased 9.1% to $436m.
Total net sales at the joint venture with the Molson Coors Brewing Company increased 4.3% to $2.2bn.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
The firm said MillerCoors' domestic sales to retailers were down 1.4%, a slight improvement versus the first quarter trend.
It said the U.S. economic environment remained challenging while unemployment among its key consumer demographics worsened.
Domestic sales-to-wholesalers increased 0.3%.
"As our major summer marketing programs kicked off during the second quarter, we saw sequential improvement in retail sales on our premium light brands, highlighted by the strong growth of Coors Light," said MillerCoors Chief Executive Tom Long.
"We also delivered double digit growth from Tenth and Blake as we scale brands like Blue Moon and Leinenkugel's Summer Shandy to meet changing consumer tastes."
Blue Moon and Leinenkugel are part of the 'craft segement' of the market, and are 'handcrafted' products that replicate the image of beers from small independent breweries.
Some beer enthusiasts have voiced concerns that the success of these brands could drive smaller producers out of business.
Sign up to Money Morning
Our team, led by award winning editors, is dedicated to delivering you the top news, analysis, and guides to help you manage your money, grow your investments and build wealth.
-
Energy bills to rise by 1.2% in January 2025
Energy bills are set to rise 1.2% in the New Year when the latest energy price cap comes into play, Ofgem has confirmed
By Dan McEvoy Published
-
Should you invest in Trainline?
Ticket seller Trainline offers a useful service – and good prospects for investors
By Dr Matthew Partridge Published