Yahoo Finance Molson Coors' (TAP) Innovation & Premiumization Efforts to Aid
Molson Coors Beverage Company TAP has been in a good spot, courtesy of gains from contributions of its revitalization plan, commitment toward innovation and the premiumization of its global portfolio. The impact of these initiatives was seen in the first quarter of 2023, wherein revenues and earnings increased year over year, and surpassed the Zacks Consensus Estimate.
Driven by the strong results, management retained the 2023 view. Net sales are projected to grow year over year in the low-single digits on a constant-currency basis. Underlying EBT is likely to grow year over year in the low-single digits on a constant-currency basis.
Shares of this Zacks Rank #1 (Strong Buy) company have rallied 26.2% in the past year against the industry’s decline of 0.6%. The stock also compared favorably with the sector’s and the S&P 500’s growth of 0.1% and 7.1%, respectively, in the same period.
The Zacks Consensus Estimate for TAP’s 2023 sales and earnings suggests growth of 5.2% and 7.3%, respectively, from the year-ago period’s reported numbers.
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Let’s Delve Deeper
Molson Coors, one of the largest brewers in the world, is committed to growing its market shares through innovation and premiumization. The firm has been rapidly expanding its above-premium portfolio over the past few years in an effort to accelerate portfolio premiumization.
The company has emphasized that it has been working to reshape its product portfolio and grow in emerging markets. Sales of its U.S. above-premium portfolio outperformed those of its U.S. economy portfolio due to the hard seltzer category's rapid expansion, Simply Spiked Lemonade's successful launch, and the continued strength of Blue Moon and Peroni's.
Additionally, Molson Coors is on track with its revitalization plan. The plan is focused on achieving sustainable top and bottom-line growth by streamlining the organization and reinvesting resources into its brands and capabilities.
The company intends to invest in iconic brands and growth opportunities in the above-premium beer space. It also plans to develop digital competencies for employees, supply-chain-related system capabilities and commercial functions. As part of the plan, the company has been expanding in adjacencies and beyond beer, without hampering the support for its existing large brands.
To facilitate these investments, Molson Coors plans to generate savings of $150 million by simplifying its structure. The company is also building on the strength of its iconic core brands. Additionally, its cost-savings program, announced in 2020, targets delivering cost savings of $600 million over three years.
Other Key Picks
We have highlighted three other top-ranked stocks from the Consumer Staple sector, namely Monster Beverage MNST, Brown-Forman (BF.B) and PepsiCo Inc. PEP.
Monster Beverage currently sports a Zacks Rank #1. The company has an expected EPS growth rate of 22.9% for three to five years. Shares of MNST have rallied 27.5% in the past year. You can see the complete list of today's Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Monster Beverage’s current financial year’s sales and earnings per share suggests growth of 12.5% and 38.4%, respectively, from the year-ago period’s reported figures. MNST has a trailing four-quarter negative earnings surprise of 4.1%, on average.
Brown-Forman has a trailing four-quarter earnings surprise of 5.7%, on average. It currently carries a Zacks Rank #2 (Buy). Shares of BF.B have declined 5.1% in the past year.
The Zacks Consensus Estimate for Brown-Forman’s current financial year sales suggests growth of 6.5% from the year-ago period's reported figure. Meanwhile, the consensus estimate for earnings indicates a decline of 5.2% from the year-ago quarter’s reported figure.
PepsiCo has a trailing four-quarter earnings surprise of 6.3%, on average. It currently carries a Zacks Rank #2. Shares of PEP have gained 10.7% in the past year.
The Zacks Consensus Estimate for PepsiCo’s current financial-year sales and earnings suggests growth of 4.9% and 7.5%, respectively, from the year-ago period's reported figures. PEP has an expected EPS growth rate of 7.8% for three to five years.
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Brown-Forman Corporation (BF.B) : Free Stock Analysis Report
PepsiCo, Inc. (PEP) : Free Stock Analysis Report
Molson Coors Beverage Company (TAP) : Free Stock Analysis Report
Monster Beverage Corporation (MNST) : Free Stock Analysis Report
