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Molson Coors stock fizzles following second-quarter earnings miss

Molson Coors shares are falling after mixed earnings results and an uncertain outlook for the remainder of the year.

Video Transcript

DAVE BRIGGS: My play is tap, Molson Coors today reporting second quarter earnings and revenue roughly in line with Wall Street estimates. CEO Gavin Hattersley told CNBC the beer industry saw slowing sales during the quarter, which resulted in a 1.7% drop in sales volume. Hattersley also saying some consumers are, indeed, trading down to brands like Keystone Lite due to inflation.

The company has raised its prices in the spring nearly double its usual rate, also considering another price hike toward the end of '22. Shares of tap up more than 13% this year. They've really weathered the storm with flat beer sales, but plummeting on this news, down more than 10 plus percent, Rachelle.

RACHELLE AKUFFO: I mean, that's tough. And even when you think of things like changing consumer trends, not just what people are willing to pay, but at one point, it was hard seltzers, and then consumers decided they didn't want that. So a lot of companies still trying to figure out what the consumer wants.

And then you have to figure out input costs, things like aluminum, or aluminum, as you say here, in terms of those costs going up over the course of the last few years. So definitely a lot of things to watch here. We'll have to see if they can keep up with what the consumer wants and perhaps get them back on brand loyalty.

SEANA SMITH: And David, it's interesting. You said that they are seeing consumers trade down, right? It's complete opposite from what we were just saying in the last block.

DAVE BRIGGS: Well, essentially, they said there's a split. They said they do see a small portion of their customer base trading up. But they're certainly acknowledging some are beginning to trade down. They're calling it a split, but the bottom line is they're seeing the inflation impact there. The only growth in beer is in that premium craft segment. Domestic beers like Coors have been struggling for quite a bit.