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Molson Coors to cut DEI policies to appease core consumers
Molson Coors has plans to axe its diversity, equity, and inclusion (DEI) policies in a move that sees it refocus on its “business objectives”.
The decision, which was detailed in an internal email sent to employees, was unveiled by conservative activist Robby Starbuck on X and revealed the business would be ending its DEI-based training for its staff members, claiming that it has been “completed”.
According to reports, future training initiatives at Molson Coors will now undergo an audit to ensure that they are all focused on the company’s “key business objectives.”
In addition to this, Molson Coors is renaming its “employee resource groups” to call them “business resource groups” in a bid to illustrate how the company is focused on “business objectives, consumer dynamics and career development”.
Molson Coors also highlighted how its future charitable endeavours will now solely support “hometown communities” aligning to its “core business goals”.
The news means that Molson Coors will reportedly no longer participate in the Human Rights Campaign’s Corporate Equality Index, which tracks LGBTQ+ corporate policies and initiatives.
Molson Coors also said that by next year it will ensure that compensation for executives at the company will be tied to business performance and not “aspirational representation goals”.
The company has also been rumoured to be ceasing diversity supplier goals after having claimed that the metrics can be “complicated” and “influenced by factors” beyond its control.
To amplify this controversial about-turn, Molson Coors’ DEI page on its website is also now unavailable.
Speaking on X, Starbuck claimed that the changes from Molson Coors came after he messaged executives at the company last week warning them that he was planning to “expose their woke policies”. A move that social media users are speculating could have provoked this response to avoid a ‘Bud Light style’ boycott from its core audience of conservative American consumers.
Molson Coors recently beat analyst predictions in its first quarter results, but is still showing a drop in revenue. The drinks company reported revenue of US$3.25 billion during the quarter, compared to analysts’ expectations of US$3.18 billion. However, Molson Coors revenue for the quarter was still down 4% compared to the same time last year.
The data showed US$1.92 earnings per share (EPS), topping analysts’ consensus estimates of US$1.68 by US$0.24. Overall, Molson Coors’ data offered up mixed results, with a decline in sales revenue in its most recent quarter.
Molson Coors recently agreed to sell four of its craft beer brands to Canadian cannabis group Tilray, including: Hop Valley Brewing Company (Oregon), Terrapin Beer Co (Georgia), Revolver Brewing (Texas) and Atwater Brewery (Illinois) for an undisclosed sum.
Earlier in the year, db took a look at its how Molson Coors’ strategic moves have contributed to its recent ascendency within the macro beer sector, globally.
Speaking openly about the company, its decisions and ambitions, Molson Coors CEO Gavin Hattersley said: “Every year, for the past three years, our industry has faced challenges. We’ve gotten good at managing them, even when they’re massive enough to permanently alter the beer industry. And every year for the past three years, we have navigated successfully through the challenges.
Despite its wins, the company has not rested on its laurels, knowing that any advantages it gained amidst the consumer boycott of Bud Light were already waning and admitted that its lucky streak appeared to have come to an end as analysts downgraded the company.
db has reached out to the business for further comments.
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