MillerCoors defies US beer market troubles

MillerCoors, the joint US venture between Molson Coors and SABMiller, has defied the problems facing the US beer market to post a 28.3% jump in profits in the second quarter of the year to $391.2 million.

The company achieved the rise despite volumes slipping by more than 1m barrels to 34.2m, with net sales falling to $3.83 billion against £3.85bn in Q2 2009.

Net income excluding special items increased 19.8% to $389.7m, which the company attributed to cost savings resulting from the merger of Miller Brewing and Coors Brewing, and lower marketing, general and administrative expenses.

MillerCoors domestic sales to retailers declined 2.4% – an improvement on Q1 which saw a 4% decline.

Total second quarter sales fell by 0.1% to $2.134bn from $2.136bn in Q2 2009.

Premium light brand volumes were down in the low single digits. Coors Light volumes were flat, while MGD 64 and Miller Lite were down by low single digits.

The crafts and imports business were led by a strong performance from the Blue Moon and Leinenkugel brands, with the segment generating double-digit growth.

"Now that we’re into the home stretch of the summer selling season, our results show some positive signs of progress," Leo Kiely, chief executive officer, MillerCoors, said.

"We grew profit by double digits in an unfavourable selling environment. A few of our key brands showed significant trend improvements from the last quarter, and the craft and import portfolio posted very strong results, driven by our investments in brand innovation."

Alan Lodge, 04.08.2010