The Weekly Sip is Food Dive’s column focused on the latest news in the rapidly changing and growing beverage sector. From inaugural product lines to big investments and controversial topics, this column aims to quench the thirst for developments in the category.
Molson Coors falling victim to lackluster beer sales
The owner of Coors Light is facing headwinds and seeing the boost it obtained when competitor AB InBev faced a consumer boycott last year fade.
Molson Coors’ earnings report this week showed mixed results, with a 1.5% year-over-year decline in net sales revenue in its most recent quarter. Brand volumes declined 7.3% in the U.S. during the period.
CEO Gavin Hattersley attributed the volume slide to inventory building, which the brewer expects to continue in the second half of the year. It is expected to be offset by price hikes and cost-saving measures at Molson Coors.
Hattersley pointed to Coors Banquet as a positive sign for the company. The 150-year-old beer grew volume 13% and gained dollar share at the fastest rate of any of the top 15 beer brands in the U.S. in the first half of this year, the CEO said. Earlier this year, Alyssa Bush, Coors Banquet’s senior marketing manager, said in an interview the brand’s nostalgic appeal is driving an upswing in sales.
Molson Coors faced a 14-week strike at its plant in Fort Worth, Texas, earlier this year, during which the company continued production with salaried workers. Hattersley said the beverage giant increased its inventories to ensure it had a healthy supply ahead of summer.
“We didn’t over ship. We shipped what we wanted to in the first half [of the year] so that we didn’t have any inventory challenges going forward,” Hattersley said.
The company believes its “above premium” offerings beyond beer, which Hattersley has prioritized during his tenure at the company, can help it continue to drive growth. Hattersley teased a nonalcoholic beer product in the works. He also pointed to the growth of Simply Spiked into a $100 million brand. It debuted two years ago as part of a multi-year collaboration with Coca-Cola.
“Given the flavor consumer evolves and shifts quickly, flavor innovation is key to keeping pace with their demands,” Hattersley said. “We believe we have impactful brands with potential in the space.”
— Chris Casey
Coffee mate finds a new friend in Kit Kat
Nestlé’s Coffee mate is joining with chocolatey-wafer candy Kit Kat to give a jolt to morning coffee.
Coffee mate’s Kit Kat creamer, which rolls out this month, joins other creations from the brand hitting the market, including Caramel Apple Crisp and Zero Sugar White Chocolate Peppermint. They join several returning fall fan-favorites in Pumpkin Spice, Peppermint Mocha and Nestlé Toll House Brown Butter Chocolate Chip Cookie.
“Consumers constantly experiment with their cups from hot to cold, savory to sweet, morning to evening,” Leonardo Aizpuru, vice president of brand marketing for Nestlé’s beverage division and business unit, said in a statement. “Our priority is to continue delivering innovative flavor creations for all experimentation moments.”
Hershey has a license to make and distribute Kit Kat in the U.S. from Nestlé, which owns the brand.
As consumers look for variety and innovation, the creamer space has been a popular avenue for experimentation. Few have been as active as Coffee mate.
While the creamer is best known for flavors such as French Vanilla and Hazelnut, the product has not shied away from incorporating other brands into its products.
In recent years, Coffee mate has introduced limited-edition flavors such as Snickers, Cinnamon Toast Crunch, Twix, Rice Krispies Treats, Pop-Tarts and Golden Grahams. The move to incorporate other brands into the mix not only creates variety but a sense of familiarity needed to promote trial since consumers are already familiar with the other brand and how it should taste.
— Christopher Doering
U.K.-based canned cocktail makes stateside debut
There’s no shortage of canned cocktail products on the market, including AB InBev’s Cutwater beverage. A brand from across the pond is hoping to make a splash in the much bigger U.S. market.
MOTH — which stands for Mix of Total Happiness — is a line of four cocktails: Margarita, made with Tequila Enemigo; Espresso Martini, containing Wood Brothers Vodka; and Mojito and Piña Colada, featuring Caribbean rums. The drinks aim to bring the bar experience into spirit-based beverages.
“Premixed, they’re as handy as a can of beer — and as ready to go as you are. No matter where the party takes you, take MOTH along for the ride to enjoy bar-quality, eco-friendly, and portable cocktails year-round,” Rob Wallis, the brand’s co-founder, said in a statement.
The offerings are available online, along with select retail locations in Massachusetts and Florida.
MOTH will compete with other offerings now on shelves in the rapidly growing RTD category that started with hard seltzer’s dominance in the late 2010s. Ready-to-drink cocktails, the fastest-growing segment of the spirits category, saw 26.8% growth in 2023. Premixed cocktails, including spirit RTDs, posted $2.8 billion in sales last year, according to data from the Distilled Spirits Council of the United States.
— Chris Casey
