SABMiller plc and Molson Coors Brewing Co. reported that net sales and net income for MillerCoors LLC declined during the second quarter.
“This was a tough volume quarter for us and for the beer industry overall,” said MillerCoors chief executive officer Tom Long.
Net income was down 5.3 percent to $412.7 million. Net sales for MillerCoors were down 2.9 percent to $2.16 billion.
In an attempt to improve results, MillerCoors is pushing brands that appeal to beer consumer’s increasing preference for craft and micro brews. That approach is paying off, Long said.
“Our strategy to evolve our portfolio to the fast-growing and higher-margin areas of the business is working, as shown by the successful launch of Redd’s Apple Ale and the nationwide expansion of Leinenkugel’s Summer Shandy,” he said. “Thanks to these initiatives, as well as the introduction of Third Shift Amber Lager and continued growth of Blue Moon Belgian White, we have already grown our Above Premium brand volumes to more than 9 percent of our portfolio in the quarter. While we continued to gain share in Premium Lights according to Nielsen data, we are working hard to restore volume growth which we believe will come as the health of the category is defined by the Premium Light performance.”
The Tenth and Blake Beer Company grew the MillerCoors Craft and Import portfolio by double digits, the company said. Leinenkugel’s Summer Shandy increased double digits as the brand continued its national expansion. Blue Moon Belgian White grew high-single digits in the quarter, continuing its run of 46 consecutive quarters of growth.
MillerCoors new expansion brands delivered strong growth in Above Premium, the company said.
MillerCoors Premium Light STRs decreased high-single digits in the quarter. Miller Lite declined high-single digits.
MillerCoors Premium Regular portfolio declined mid-single digits. Coors Banquet grew mid-single digits. But Coors Banquet’s continued growth was offset by declines in Miller Genuine Draft.
MillerCoors Economy portfolio also declined mid-single digits.