Boston, MA 05/14/2014 (wallstreetpr) – Though Molson Coors Brewing Company (NYSE:TAP) celebrated net income gain in the latest quarter, the beer maker has many things to worry about as it looks into the future.
The company has noted increasing competition that has led to a systematic decline in its sales in recent years. The trouble comes from the craft-beer that is fast-edging light beer out of the market at an alarming rate.
As bar owners move to embrace craft-beer while taking light beer from the shelves, Molson Coors Brewing Company (NYSE:TAP) CEO Pete Coors recently observed that his business is losing about 50 percent in sales volume. Analysts also agree that the trend could hurt the light beer industry more because of the big shift in the consumer preference.
However, even as the market conditions look grim, Mr. Coors believes that all is not lost for the company. As such, the company considers entering into more collaborative arrangements with strategic partners to improve distribution and expand into new markets where light beer is still highly regarded.
On the near-term
Though Molson Coors Brewing Company (NYSE:TAP) considers collaboration to support higher sales volumes, such arrangements are for the long-term goal. Therefore, in the short-term, the company considers increasing customer engagement and supply chain improvement to support sales. The company also intends to undertake more aggressive internal improvements to curb costs and expenses to achieve big savings and support bottom-line growth even amid the soft demand environment.
1Q2014 at a glance
Molson Coors Brewing Company (NYSE:TAP) reported that its net income rose to $163.4 million or $0.88 per share in 1Q. That compared with a net income of $28.5 million or $0.16 per share in the same period a year ago. The quarter was supported by $63.2 million gained from the closure of a joint venture that the company had with SABMiller PLC.
Revenue in the latest quarter declined slightly to $816 million, but managed to exceed the expectation of Wall Street at $812.9 million.
