US beer giant Molson Coors is restructuring and rebranding after reporting a loss of US $ 402 million in the third quarter, putting 500 jobs at risk.
President and CEO Gavin Hattersley said the brewer needed “big and difficult changes” to regain growth.
Net sales fell 3.2% in the third quarter. Molson Coors’ share price was down 3.09% when trading closed on Wednesday, ending at $ 53 per share.
Molson Coors sales are suffering as young drinkers move away from mass beer and instead buy trendy drinks like White Claw and other âspiked seltzersâ, craft beer and alternatives to beer. alcohol-free beer.
Hattersley said the restructuring is designed to âstreamline the business, move faster and free up resources to invest in our brands and capabilities.
âWith this, we will create a better future for Molson Coors. “
The brewer will change its name to Molson Coors Beverage Company to “better reflect its strategic intention to expand beyond beer and into other growth areas.”
The company has announced plans to cut between 400 and 500 jobs as part of a larger restructuring of the company. It will also close its Denver office and move its headquarters to Chicago. The company has approximately 17,750 employees worldwide, including 7,300 in the United States.
Molson Coors hopes to save $ 150 million with the head office move, but has not disclosed where his 500 layoffs will take place.
This is the third time that Molson Coors has posted disappointing sales figures this year.
Molson Coors profits had already suffered in the first three months of 2019. Net sales for the company’s first quarter in the United States were $ 2.3 billion, down 1.2% over one year, which the company said was due to volume declines and “unfavorable currency movements.” . “
Then, in the second quarter, net sales declined 4.4% to $ 2.95 billion from the same period last year. Sales in the United States were down 2.9% year-on-year and 6.1% in Canada. Second quarter net income was $ 329.4 million or $ 1.52 per share, down from $ 424.1 million for the same period in 2018.
Hattersley has only been CEO for three months. Former chief executive Mark Hunter resigned in August, coinciding with the brewer’s second quarter earnings release.
Molson Coors has tried to diversify from its staple beer lineup in recent months, taking over London brewer Hop Stuff after it took office in July.
In August, it also launched a new brand dedicated to hop-flavored sparkling water in the United Kingdom.
Molson Coors said she would “focus on getting new drinks to market faster and more accurately”
This will include reducing the time it takes to bring innovations to market from 18 months to “as little as four months in the United States, and expanding a” test and learn “approach that assesses the market’s potential to the products, then develops rapidly. “