In October 2019, Molson Coors laid out its revitalization plan designed to allow us to invest across our portfolio at the level necessary to drive long-term, sustainable topline growth and operating efficiencies.
Building on the Strength of our Core, Aggressively Growing Above Premium and Expanding Beyond Beer
We have shown we can improve the performance of our iconic brands and can stabilize brand performance and position for sustainable growth – by accelerating investments behind the largest brands in our portfolio, by focusing on recruitment especially of new legal age drinking consumers, by driving relevance with breakthrough marketing, and by innovating core brands to attract legal age drinkers. Under our plan, we will invest significantly in above premium, the fastest-growing area of the beer industry, with added investment in existing brands, new innovations and possibly through bolt-on acquisitions where appropriate. We will expand in growth spaces beyond beer.
We will also put a greater focus on bringing new beverages to market faster and with more precision. This includes expanding the model that has reduced the time it takes to bring innovations to market from 18 months to as little as four months in the U.S. and expanding a “test and learn” approach that evaluates market potential for products and then quickly scales up.
Investing in Capabilities, Systems and People
As part of the revitalization plan, we will also invest in improving our digital capabilities, expanding data resources and building out innovation systems. This will better enable precision marketing and improve e-commerce abilities. New investments in leadership and growth opportunities for employees will help build an inclusive culture and diverse workforce.
Separately, we will continue ongoing efforts to modernize our brewery footprint, including investing several hundred million dollars to modernize our brewery in Golden, CO. These plans will allow for more flexible capacity to better meet demand and fulfill future growth opportunities, while increasing supply chain efficiency. We are not using the cost savings generated from the revitalization plan to make this previously planned brewery investment possible.
Streamlining Organizational Structure to Enable Investment
To make the new investments possible, Molson Coors plans to unlock approximately $150 million in savings by simplifying its structure. In 2020, we moved from a corporate center and four business units (MillerCoors in the U.S., Molson Coors Canada, Molson Coors Europe and Molson Coors International) to two streamlined business units. Today, they are called Americas and EMEA & APAC.
The Americas business unit consolidates the U.S., Canada and corporate center, enabling us to move much more quickly with an integrated portfolio strategy. The EMEA & APAC business unit is structured to allow for standalone operations, developed and supported by a European-based team, including a local leadership, commercial, supply chain and support functions. The Molson Coors International team was reconstituted to more effectively grow the company’s global brands – with the Latin America business reporting into the Americas business unit and Africa and Asia Pacific reporting into the EMEA & APAC business unit.