Molson Coors' Success Proves Beer Might Be Immune To Inflation
As inflation rates continue to rise faster than the bubbles in our beer, it's no wonder that consumers find themselves sitting down with a cold brew at the end of a long day full of sticker shock. While shoppers are pinching pennies anywhere they can, Food Dive reports that they seem to draw the line when it comes to suds. Folks still have a hankering to tap the Rockies, and Molson Coors' gains during record inflation taste like success for the beer industry.
While it seems that the massive interest in hard seltzers has lost its fizz, beer sales have maintained over the past few years, with Molson Coors leading the six-pack. As many shoppers opt for more affordable beers, the recognizable beer producer reported that its economy beer portfolio posted its best quarterly performance in three years. In Molson Coors' 2022 second quarter results report, President and CEO Gavin Hattersley stated that the beer giant had five consecutive quarters of sales growth for the first time in over a decade.
Despite inflationary pressures, it's not just the economy beer brands that have seen sales success. Molson Coors' reported that premium beers like Blue Moon and Peroni accounted for a record high portion of net sales revenue in the company's global portfolio (per Food Dive). Molson Coors isn't alone in its successful sales of both economy and premium beers, as other companies report that inflation hasn't impacted consumers' craving for a hops-based brew.
Beer sales soar despite inflation
Consumers are telling inflation to hold their beer as Modern Retail reports that they continue to shell out their hard-earned money for a cold brew. Despite rising costs, consumers are even opting for premium beer brands to unwind at the end of the day, and beer producers across the board are here for it.
According to Food Dive, other popular beer brands are not seeing a decline in consumption and are instead experiencing an increase in volume on premium brands like Heineken, which went up by 14%. AB InBev, which produces beers like Bud Light and Michelob Ultra, is also reporting continued global growth and gaining shares in many significant markets. Constellation Brands, which makes Modelo Especial and Corona Extra, note that shoppers consistently buy beer despite inflation, and the company's CEO expects sales to remain stable and grow by 1% to 2%.
Molson Coors' CEO Gavin Hattersley says that consumers often opt for premium beers even during tight economic times. AB In Bev's CEO Michel Doukeris explains that when shoppers are under pressure from inflation, it's still less expensive to trade up for a premium beer than it is to opt for other more expensive alcohols.