Our Revitalization Plan – Fueling Future Growth

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 – North America and Europe.

The North America business unit consolidates the U.S., Canada and corporate center, enabling us to move much more quickly with an integrated portfolio strategy. The Europe 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 North America business unit and Africa and Asia Pacific reporting into the European business unit.

Gavin-Hattersley-Headshot

"Since taking the reins in October 2019, our strategy has been focused on driving top-line growth and enhancing operational efficiencies with an emphasis on continuing to advance our long history of sustainability. Through dedicated support of our iconic brands, exciting new innovations, and partnerships with leaders in both beer and adjacent categories, we strive to optimize our portfolio to best capitalize on industry growth trends and serve our customers even better. With strong cash flow generation, coupled with an approach of prudent capital allocation and constant expense reassessment, we are driving clear improvements in the balance sheet and financial flexibility to fuel our strategic objectives. We are proud of our progress, particularly amidst the challenges due to the coronavirus pandemic, and believe we have demonstrated the agility and operational strength to successfully execute our strategy to drive top-line growth and long-term value creation for all our shareholders."

Gavin Hattersley
Chief Executive Officer

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This web page includes “forward-looking statements” within the meaning of the U.S. federal securities laws. Generally, the words “expects,” “intend,” “goals,” “plans,” “believes,” “continues,” “may,” “anticipate,” “seek,” “estimate,” “outlook,” “trends,” “future benefits,” “potential,” “projects,” “strategies,” and variations of such words and similar expressions identify forward-looking statements, which generally are not historic in nature. Statements that refer to future events or circumstances are forward-looking statements, and include, but are not limited to, Molson Coors’ expectations regarding the revitalization plan, including savings, growth and other financial matters and business trends. Although Molson Coors believes that the assumptions upon which its forward-looking statements are based are reasonable, it can give no assurance that these assumptions will prove to be correct. Important factors that could cause actual results to differ materially from Molson Coors’ historical experience, and present projections and expectations are disclosed in Molson Coors’ filings with the Securities and Exchange Commission (“SEC”). These factors include, among others, Molson Coors’ ability to implement its strategic initiatives, including executing and realizing cost savings; the impact of the coronavirus pandemic, the impact of increased competition resulting from further consolidation of brewers, competitive pricing and product pressures; health of the beer industry and Molson Coors’ brands in its markets; economic conditions in Molson Coors’ markets; Molson Coors’ ability to maintain manufacturer/distribution agreements; changes in its supply chain system; availability or increase in the cost of packaging materials; success of its joint ventures; risks relating to operations in developing and emerging markets; changes in legal and regulatory requirements, including the regulation of distribution systems; fluctuations in foreign currency exchange rates; additional impairment charges; increase in the cost of commodities used in the business; the impact of climate change and the availability and quality of water; loss or closure of a major brewery or other key facility; pension plan and other post-retirement benefit costs; failure to comply with debt covenants or deterioration in Molson Coors’ credit rating; Molson Coors’ ability to maintain good labor relations; Molson Coors’ ability to maintain brand image, reputation and product quality; and other risks discussed in Molson Coors’ filings with the SEC, including its most recent Annual Report on Form 10-K and its Quarterly Reports on Form 10-Q. All forward-looking statements on this web page are expressly qualified by such cautionary statements and by reference to the underlying assumptions. You should not place undue reliance on forward-looking statements, which speak only as of the date they are made. Molson Coors does not undertake to update forward-looking statements, whether as a result of new information, future events or otherwise.