U.S. markets closed
  • S&P 500

    3,638.35
    +8.70 (+0.24%)
     
  • Dow 30

    29,910.37
    +37.90 (+0.13%)
     
  • Nasdaq

    12,205.85
    +111.44 (+0.92%)
     
  • Russell 2000

    1,855.27
    +10.25 (+0.56%)
     
  • Crude Oil

    45.53
    -0.18 (-0.39%)
     
  • Gold

    1,781.90
    -23.60 (-1.31%)
     
  • Silver

    22.64
    -0.81 (-3.44%)
     
  • EUR/USD

    1.1970
    +0.0057 (+0.48%)
     
  • 10-Yr Bond

    0.8420
    -0.0360 (-4.10%)
     
  • GBP/USD

    1.3314
    -0.0042 (-0.32%)
     
  • USD/JPY

    104.0500
    -0.2000 (-0.19%)
     
  • BTC-USD

    16,965.96
    -219.38 (-1.28%)
     
  • CMC Crypto 200

    333.27
    -4.23 (-1.25%)
     
  • FTSE 100

    6,367.58
    +4.65 (+0.07%)
     
  • Nikkei 225

    26,644.71
    +107.40 (+0.40%)
     

Molson Coors Divests Irwindale Brewery to Boost Efficiency

Zacks Equity Research
·3 min read

Molson Coors Beverage Company TAP is on track with its revitalization plan focused on achieving sustainable top-line growth by streamlining the organization and reinvesting resources into its brands and capabilities. In the latest development, the company announced the completion of the sale of its brewery property in Irwindale, CA, to Irwindale Brew Yard, a subsidiary of Pabst Brewing Company, LLC. This will help the company streamline its operations to boost efficiency across its network and reinforce liquidity.

We note that the producer of Coors Light and Miller Lite informed in January that it will stop production at its 40-year-old facility by September. The company had transitioned the production from Irwindale to the breweries in Golden, Colo and Fort Worth, TX. According to the earlier-negotiated settlement agreement, Pabst Brewing had the option of buying the brewery for $150 million.

Meanwhile, the company intends to invest in iconic brands and growth opportunities in the above-premium beer space; expand in adjacencies beyond beer without hampering support for its existing large brands; and creating digital competencies for commercial functions, supply-chain-related system capabilities and employees.

The company is building on the strength of its iconic core brands. Year to date, Coors Light and Miller Lite grew 6% and 9.5%, respectively, in the U.S. off-premise channel. Per Nielsen, it has expanded the combined U.S. segment share for Coors Light and Miller Lite for 24 straight quarters in the third quarter of 2020 (or six consecutive years). Moreover, it aims to stabilize share gains for its biggest brands in the total beer category. Furthermore, the company has been aggressively growing its above-premium portfolio and expanding beyond beer categories.



Markedly, shares of this Zacks Rank #2 (Buy) company have gained 8% in the past month against the industry’s 0.9% dip. The stock recently got a boost from top- and bottom-line beat in third-quarter 2020. This marked the company’s fifth straight quarter of bottom-line beat, while the top line surpassed the Zacks Consensus Estimate for the second consecutive quarter. Moreover, adjusted earnings improved year over year, benefiting from favorable net pricing in the United States and Canada, cost savings, and lower marketing, general and administrative expenses.

More Solid Beverage Stocks

Boston Beer SAM delivered an earnings surprise of 23.1% in the last four quarters, on average. It sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Brown-Forman BF.B currently has a Zacks Rank #2. It delivered an earnings beat of 8.2% in the last four quarters, on average.

Carlsberg CABGY, also a Zacks Rank #2 stock, has gained 13.9% in the past six months.

5 Stocks Set to Double

Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.

Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.

">Today, See These 5 Potential Home Runs >>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Molson Coors Beverage Company (TAP) : Free Stock Analysis Report
 
BrownForman Corporation (BF.B) : Free Stock Analysis Report
 
The Boston Beer Company, Inc. (SAM) : Free Stock Analysis Report
 
Carlsberg AS (CABGY) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.