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Molson Coors Launches Two Beer Brands Online in Singapore

Zacks Equity Research

In keeping with its e-commerce initiatives, Molson Coors Brewing Company TAP has launched its two major brands, Carling and Blue Moon, on Amazon Prime Now in Singapore. Beer enthusiasts in Singapore can now avail these brands outside bars and restaurants via this fast and expedient two-hour delivery service app.

In sync with its purpose to ‘Delight the World’s Beer Drinkers’, Molson Coors also remains committed to boost the online beer experience worldwide. The company has been making efforts to win the digital shelf by increasing the beer category’s online penetration through valuable e-commerce partnerships. Apart from exploring a new country like Singapore, the company has also made online partnerships in core territories, including the United States, the United Kingdom and Canada.

Additionally, Molson Coors remains on track to pilot a fresh program with Amazon.com AMZN in Singapore, beginning this month. Carling will be the first brand to be featured on limited-edition delivery bags, highlighting its sponsorship of English Premier League.

Notably, Carling, which is available in more than 15 countries, was launched on Prime Now in May 2018. Meanwhile, Blue Moon Belgian White, available across 25 countries, was rolled out in June. Following the latest expansion in Singapore, these brands will join several items such as grocery, health, beauty, electronics and more on Prime Now in the country.

We expect the latest deal with Amazon — the largest online retailer — to fortify Molson Coors’ online beer presence, which in turn might boost its sales and profitability. Also, the deal is likely to efficiently cater to the needs of Singapore consumers.

Notably, Molson Coors’ new International strategy targets focus-markets and implementing actions to improve profitability. The company made significant progress on this strategy in 2018, marked by a shift to local production in Mexico; favorable pricing changes for Coors Light, MGD and Miller Lite; accelerated growth of Blue Moon and Miller High Life; and strong retail performance.

On the international front, some recent achievements by the company were MGD attaining leadership in Paraguay’s premium segment, the launch of Blue Moon Tap House in Panama, and strong portfolio growth in Latin America and India. Backed by these strategic actions, the International brand experienced solid volume growth in the most recent quarter along with growth in underlying EBITDA.

Management expects the International business to aid top- and bottom-line growth driven by consistent focus on improving portfolio mix, building capabilities to expand in priority markets and potential entry into new markets.


 

A look at this Zacks Rank #4 (Sell) company’s price performance shows that it has underperformed the industry in the past three months. Shares of Molson Coors have lost 5.9% against the industry’s 12.5% rally.

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