Business Strategy and Outlook| Jaime M. Katz, CFA |
Molson Coors has long been a mainstay of the global beer industry, with North American staples like Coors and Miller and leading European brands such as Carling. However, these trademarks that once were a strength are now mostly albatrosses, in our opinion, largely declining in relevance and volume. Moreover, while they are starting to see improvements, the firm's legacy brands have proved difficult to parlay into higher-end categories with more propitious growth prospects, as innovation efforts in this regard have seen mixed success. With the firm's dominance largely in secularly challenged segments of the malt category, we don't believe this positioning reaps advantages sufficient for a moat.