Wall Street expected a slight increase in sales, but Molson Coors reported a decline in its US, Canada, and European markets. As a result, their stock (TAP) fell 13% and is already down 25% for the year. That’s the lowest it’s been in four years.
The Colorado-based brewery is known for popular brands such as Coors Light, Miller Lite, Molson Canadian and Blue Moon. However, it seems they’re less popular these days.
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The brewery blamed its tepid sales on a couple of factors:
First, Molson Coors attempted to roll out a new ordering system but there were glitches. This caused a delay in getting its beer to distributors and wholesalers. And second, the brewery blamed inclement weather in January and February for its 6% drop in sales.
Poor weather in January and February is hardly a surprise and Wall Street wasn’t buying it.
Likewise, Anheuser-Busch InBev (BUD) reported negative earnings for their first quarter and their stock has dropped 9.3%.
But it’s not all doom and gloom for some of the biggest names in beer. Constellation Brands (STZ), owners of Corona, Modelo, Ballast Point, and Funky Buddha, reported strong sales during their first quarter. And Boston Beer Company (SAM), owner of the Samuel Adams brand, has rebounded nicely after a tough few months.
