Amid Slow Beer Premiumization Progress, Molson Coors Is Prudent to Add Nonalcoholic Exposure

Molson Coors owns well-known brands such as Miller, Coors, and Blue Moon in North America and Carling in the UK. However, sizable exposure to the secularly challenged midrange and economy beer segments has led to sluggish volumes in past years. This is preventing the firm from maintaining brand-driven intangible assets that would underpin a durable competitive edge. Furthermore, the firm has had limited success thus far in parlaying its legacy brands into higher-end beer, which is more conducive to brand prowess. As such, we don’t believe it has carved out an economic moat.