Brewer Molson Coors has announced what it has described as a 'revitalisation plan', in order to consistent drive top-line growth at the business.
The group made the announcement as it revealed third-quarter figures that showed a 3.2% decline in net sales on a reported basis, and by 2.0% at constant currency levels.
The new strategy aims to drive growth by 'improving efficiency and unlocking resources to reinvest in the business', Molson Coors said in a statement.
It will see the business invest in its 'iconic' brands and explore the super-premium space; expand its reach 'beyond beer', without sacrificing support for its key brands; and develop new digital competencies for commercial, supply chain and employee functions.
'Significant Resources'
"To make this possible, Molson Coors plans to unlock significant resources by eliminating duplication, shedding what’s not working and restructuring the organisation to better succeed in today’s competitive, fast-paced environment," commented Molson Coors president and chief executive officer, Gavin Hattersley.
The move is expected to see the reduction of its workforce by around 400 to 500 employees, primarily in its US, Canada and International reporting segments, as well as its corporate functions.
It plans to close its Denver office, with Chicago now designated its North American operational headquarters. In addition, functional support roles, which are currently situated in a number of offices across the US, will be consolidated in Milwaukee, Wisconsin.
At the same time, it will invest 'several hundred million dollars' in its Golden, Colorado brewery, with a view to expanding its opportunities and improve supply chain efficiency.
Inflection Point
"Our business is at an inflection point. We can continue down the path we’ve been on for several years now, or we can make the significant and difficult changes necessary to get back on the right track,” said Hattersley.
“Our revitalisation plan is designed to streamline the company, move faster, and free up resources to invest in our brands and our capabilities. Through it, we will create a brighter future for Molson Coors.”
In the third quarter, Molson Coors posted a 5.6% decline in underlying EBITDA, to $703 million.
Worldwide brand volume and financial volume declined by 2.4% and 5.5% respectively, due to declines in all segments, it added.
© 2019 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: The European Supermarket Magazine.
