- 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.
Molson Coors announced strong Q1 2023 results, pointing to marketing pushes as part of the reason for the success. The company seems to be bucking many downward trends seen by other beer companies, such as falling sales and the loss of shelf space.
Earlier this year, Molson Coors underwent a corporate restructuring, which saw CMO Michelle St. Jacques promoted to chief commercial officer. As part of the reorganization, the sales team is working more closely with the marketing department, with additional emphasis on growth areas such as beyond beer and digital investments, per the earnings call.
The Super Bowl LVII commercial, along with a surrounding campaign, helped Coors Light rise to a top-three brand for all display activity in February. Miller Lite has also seen a steady increase, becoming a top-10 growth brand, according to Circana data cited in the blog post. On the call with analysts, executives reported a more than 60% increase in impressions across its three key brands in January and February versus the prior year.
During the earnings call, analysts and executives obliquely addressed a more recent sales spike in the wake of a Bud Light controversy related to its work with transgender influencer Dylan Mulvaney that has seen that brand’s sales drop.
“Honestly, we can’t say how long the current situation is going to last,” said Gavin Hattersley, Molson Coors’ president and CEO, on the call, in answer to a question that alluded to the controversy. “And our focus is going to stay on our brands.”
Premiumization has also paid off for the company, especially in Europe and Asia. Molson Coors business in these markets grew 7.6%, largely fueled by the effort tied to this initiative. One high performer is Madrí Excepcional, which is the eighth best-selling brand in the U.K. In the U.S., import Peroni Nastro Azzurro has gained traction, even sparking the release of a non-alcoholic version.
Aggressive marketing of beer alternatives has also seemed to pay off, with Simply Spiked Lemonade, which launched a peach flavor in March, now a top-10 flavored malt beverage brand, according to cited data. Topo Chico Hard Seltzer is another success story from the collaboration with The Coca-Cola Company.