Considering post Labor Day performance of major US brewers, Deutsche Bank considers Molson Coors to be the top brewer in the US. The company cited growing volume over the holiday, as well as higher net pricing, even when including the large number of in store promotions. Finally, the company noted that consumers are trading down from more expensive imports like Corona to lower cost domestic beers. Since Molson Coors receives the bulk of its revenue from its own product line, and not licensed beers, it stands to benefit greatly from this trend.
The company generates significant and growing cashflow in its mature markets and can enter more rapidly growing markets in search of further opportunities.
Molson Coors commands a great deal of the Canadian and Western European market shares, providing them with several stable, mature markets in which to continue profitably selling its products.
Molson Coors recent 29% increase in profit was can be credit, in part, to its decision last year to combine its U.S. operations with SABMiller. MillerCoors, the joint-venture, saw income rise 15% from a year earlier when the two were separate companies.
