Beer maker Molson Coors Brewing Co's (NYSE: TAP) ongoing field-work of an experimental hard coffee beverage is off to a good start and management will decide next year if it will work to expand sales, according to the Denver Business Journal.
What Happened With Molson's Hard Cold Brew Coffee
Molson started testing its Hard Cold Brew Coffee made with Colombian and Brazilian coffee as part of a partnership with La Colombe Coffee Roasters. Management is still in the early stages of testing its product in a few U.S. cities and it's not yet clear what Molson's ultimate ambitions are.
Recently appointed CEO Gavin Hattersley made it clear he wants to expand Molson beyond beer and coffee represents an attractive area to do so, the business publication wrote. Molson was likely attracted to the growing packaged cold-brew market and felt adding alcohol is a winning formula.
After a few months of testing its coffee beverage, Molson is "hitting our benchmarks," Janice Wisniewski, Molson Coors' associate marketing manager for innovations, told the Denver Business Journal. Sales in three U.S. cities are seeing traction in liquor stores, large grocery chains, and even in bars and restaurants.
Why Hard Cold Brew Is Important For Molson
Consumers are indicating the cold brew beverage is a "drink for all occasions," Wisniewski said. Drinking a hard coffee beverage is just as appropriate "right before dinner" or "before going to a party." Molson would likely need to back up any big ambitions with a large marketing push to expand the market size, which is relatively small.
According to Statista, sales of hard cold brew hit just $38 million in 2017 versus the hard-seltzer market. Molson's management team is taking a wait and see approach and will decide next year how best to proceed with its cold brew.
Molson's stock closed Tuesday at $50.10 per share.
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