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The Weekly Sip is Food Dive’s column focused on the latest news in the rapidly changing and growing beverage sector. From inaugural product lines to big investments and controversial topics, this column aims to quench the thirst for developments in the category.
Molson Coors Struggles with Declining Beer Sales
Molson Coors, the owner of Coors Light, is experiencing challenges as its competitor AB InBev’s consumer boycott boost from last year fades.
The recent earnings report from Molson Coors showed a 1.5% year-over-year decline in net sales revenue in the most recent quarter, with a 7.3% decline in brand volumes in the U.S.
CEO Gavin Hattersley attributed the volume decline to inventory building, which is expected to continue in the second half of the year. The company plans to offset this with price increases and cost-saving measures.
Despite these challenges, Coors Banquet has shown positive growth, with a 13% increase in volume and gaining dollar share among the top 15 beer brands in the U.S. Hattersley highlighted the brand’s nostalgic appeal as a key driver of sales.
Molson Coors faced a strike at its Fort Worth, Texas plant earlier this year but managed to maintain production with salaried workers. The company increased inventories to ensure supply stability ahead of the summer season.
The company is looking to its “above premium” offerings to drive growth, with plans for a nonalcoholic beer product in development. Hattersley also mentioned the success of Simply Spiked as a $100 million brand, emphasizing the importance of flavor innovation to meet consumer demands.
— Chris Casey
Coffee mate Collaborates with Kit Kat for New Creamer Flavor
Nestlé’s Coffee mate is introducing a new Kit Kat creamer flavor to enhance morning coffee routines.
The Kit Kat creamer, launching this month, joins other innovative flavors from Coffee mate, including Caramel Apple Crisp and Zero Sugar White Chocolate Peppermint, alongside returning fall favorites like Pumpkin Spice and Peppermint Mocha.
Coffee mate has been active in the creamer space, experimenting with unique flavors like Snickers, Twix, and Rice Krispies Treats. The incorporation of other brands into their products aims to provide variety and familiarity to consumers.
— Christopher Doering
U.K. Canned Cocktail Brand MOTH Makes U.S. Debut
MOTH, or Mix of Total Happiness, introduces a line of four cocktails in the U.S. market, aiming to bring a bar-quality experience to spirit-based beverages.
The cocktails, including Margarita, Espresso Martini, Mojito, and Piña Colada, feature premium ingredients like Tequila Enemigo and Wood Brothers Vodka. MOTH offers a convenient and eco-friendly option for enjoying cocktails on the go.
With the rapidly growing RTD category, MOTH faces competition in the ready-to-drink cocktail market, which saw significant growth in recent years.
— Chris Casey