During the second quarter, Molson Coors brands - Coors Light, Miller Light, and Coors Banquet, saw a double-digit volume growth according to an earnings statement released last week.
Molson Coors' growth volumes were up 8.7% in the United States over the second quarter, also marking the strongest net sales revenue since Molson and Coors merged back in 2005 up 12.1% year-over-year.
The company attributes some of the growth to the Dylan Mulvaney-Bud Light controversy but also argues that the changes made to Molson Coors' operational and marketing strategies allowed them to seize the moment.
“If this had happened in 2019, we would surely not have seen the sales benefit that we did in 2023 or even been able to meet the demand,” said Molson Coors CEO Gavin Hattersley on a call with analysts.
Back in 2019, Coors Light launched its "Made to Chill" marketing campaign with hopes to recruit more 21-34-year-old drinkers to the brand.
“We’re trying to give them a moment to chill. It’s not a moment of escape, it’s more about pause, about taking a moment to step back and turn off,” says Ryan Reis, Vice President of Coors family brands. The idea behind the campaign is that “chill” is an everyday occasion, and “there’s no better way to turn off than with the cold refreshment of a Coors Light.”
On the same call, Hattersley noted that Coors Light and Miller Lite combined now represent a share of industry dollars that is 50% larger than Bud Light and 30% larger than Modelo Especial. Meanwhile, Modelo became the top-selling beer in the U.S. during Q2, dethroning Bud Light from a position they held for over two decades.
In response, the company plans to ramp up its marketing spending to preserve the momentum gained in Q2. Molson Coors will increase its shopper marketing dollars around convenience stores for the second half, according to Hattersley. Molson Coors expects higher expenses, primarily driven by marketing spend, which it plans to hike by roughly $100 million.
