In the shadow of a softening beer market, Molson Coors Beverage Company is doubling down on its premiumization strategy to weather economic turbulence. On August 5, 2025, the brewing giant released its second-quarter results, highlighting industry-wide pressures that led to a 1.6% dip in net sales to $3.2 billion—or 2.6% in constant currency.
The downturn stems from macroeconomic strains curbing consumer spending, softer U.S. market share, and the discontinuation of contract brewing arrangements in the Americas at the end of 2024. These factors drove a 7% drop in financial volumes and a 5.1% decline in brand volumes, and were further compounded by rising aluminum costs from indirect tariff impacts, particularly the Midwest Premium.
Financially, U.S. GAAP income before income taxes fell 0.9% to $554.9 million, with underlying income before taxes down 0.8% in constant currency to $531.5 million. Yet, price and sales mix rose 4.4%, fueled by premium offerings and higher net pricing, while marketing, general, and administrative expenses dropped 4.9% reported—or 5.8% in constant currency—due to timing adjustments and lower incentive compensation.
In response, Molson Coors revised its full-year outlook: net sales now projected to decline 3% to 4% in constant currency, underlying income before taxes down 12% to 15%, and underlying diluted EPS slipping 7% to 10%. The company reaffirmed underlying free cash flow at $1.3 billion, plus or minus 10%, supported by higher cash tax benefits and working capital gains.
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CEO Gavin Hattersley framed the softness as cyclical, not structural. “We continue to view the incremental softness in the industry performance this year as cyclical, and we continue to believe in Molson Coors’ ability to achieve its long-term growth objectives,” he said. CFO Tracey Joubert added that the strong balance sheet enabled $500 million in shareholder returns through dividends and accelerated share repurchases in the first half.
Molson Coors is advancing its Acceleration Plan with targeted investments. Core U.S. brands—Coors Light, Miller Lite, and Coors Banquet—have largely retained share gains from the past three years. The brewer’s premiumization push spans global lagers like Peroni, craft-style beers such as Blue Moon, and beyond-beer offerings including Five Trail whiskey. In EMEA&APAC, Madri drives strength, while Canada sees growth in Miller Lite and its flavor portfolio.
Looking ahead, the company declared a $0.47 per share dividend on July 16, payable September 19 to record holders on September 5. The July 4 enactment of the One Big Beautiful Bill Act could ease cash tax liabilities via extended provisions. Hattersley reaffirmed commitment to long-term profitable growth amid ongoing pressures.
In a market where loyalty is under pressure and tastes are shifting, Molson Coors’ premiumization playbook could become a case study in how legacy brewers reinvent themselves for the next decade.
