Its official corporate moniker is Molson Coors Brewing Company. But its new name will be Molson Coors Beverage Company.
Sales and profits were both down from a year ago and missed Wall Street's forecasts. The company also announced a restructuring that will lead to between 400 and 500 job cuts. According to the company's latest annual report, Molson Coors had about 17,750 employees worldwide, 7,300 of them located in the US.
Molson Coors said it plans to consolidate and reorganize office locations. Its Denver office will be close, and a stunning decision considering how synonymous Coors and Coors Light are with the Colorado and the Rocky Mountains. (Of course, the company still has the Coors brewery in Golden and plans to spend more to modernize it.)
Chicago will become the company's new North American operating headquarters. Molson Coors also said several positions that were based in offices across the US will now all be moved to its Milwaukee office.
The company said it expects incur restructuring charges ̵
A need for fresh new beverages
"Our business is at an inflection point. We can continue down The path we've been on for several years now, or we can make the significant and difficult changes necessary to get back on the right track, "said Molson Coors CEO Gavin Hattersley, who took over as CEO last month.
"Our revitalization plan is designed to streamline the company, move faster, and free up resources to invest in our brands and our capabilities," he added.
As part of the changes, Molson Coors says it will invest " significantly "in pricier beers in what it dubbed the" Above Premium "category – which the company said is the fastest growing part of the beer industry.
But the company also said it plans to move" beyond beer. " Molson Coors has already launched canned wine and "hard" alcoholic coffee products this year, and the company said it would look to launch even more non-beer products. Hence, the name change.
Molson Coors said it would also put a greater focus on innovating more quickly – with the goal of reducing the time it takes to bring new products to market from 18 months to as little as four months.
The moves are clearly an attempt to lift sagging sales. And Molson Coors is not the only alcoholic beverage company that is trying to diversify to rejuvenate its growth.