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MillerCoors names new CEO as profits plummet
US beer brewer MillerCoors has drafted in Gavin Hattersley, chief financial officer at parent company Molson Coors, as interim CEO as the company announced a 50% slide in profits this quarter.
Gavin Hattersley (Photo: Molson Coors)
It blamed a higher tax rate and unfavourable currency movements as contributing to the drop in profits, down from $163.4 million to $81.1 million.
Molson Coors president and chief executive officer Mark Hunter said, “Our results for the first quarter reflect continued volume pressure in our largest markets and, as expected, a significant impact from foreign currency movements, a higher tax rate, and terminations of business contracts, all of which we discussed on our last earnings call.”
The company, a joint venture between SABMiller and Molson Coors in the US, said world-wide beer volume fell 3.5% in the quarter. Volume fell 7% in Europe, driven by weak consumer demand and its decision not to sacrifice its margins to drive sales.
Its leading brands Miller Lite and Coors Light brands both declined in volume sales by small amounts.
At the same time, the company has announced the appointment of Gavin Hattersley to the role of interim CEO to lead the business when current CEO Tom Long retires at the end of June.
Hattersley, 52, currently Chief Financial Officer (CFO) of Molson Coors and former CFO of MillerCoors, will serve as interim CEO for up to six months until the board completes its search for a permanent successor.
“Gavin is an outstanding and trusted leader with ideal qualifications for the role. He has extensive beer industry knowledge and experience in the U.S. and on the global stage. His unique experience of having held top leadership positions with both parent companies and MillerCoors makes him the right choice to take the business forward with integrity and a strong sense of purpose,” said Pete Coors, Chairman of MillerCoors and Molson Coors.
Hattersley will remain in his role as chief financial officer at Molson Coors during his time at the helm of MillerCoors.