Molson Coors Hard Seltzer

Molson Coors (NYSE: TAP) reported its Q2 earnings Thursday, beating analysts’ top and bottom line estimates and posted, what the company called, “its best quarterly top-line growth in more than a decade.”

Molson Coors reported earnings of $1.58 per share, beating both Zacks Consensus Estimate of $1.38 per share and last year’s corporate earnings of $1.55 per share. Additionally the company reported $2.94 billion in net sales revenue, a 17.4% increase compared to last year’s Q2.

Hard Seltzer Drives Sales, Profits

Molson Coors attributes its successful quarter, in part, to the strength of its portfolio of hard seltzer. Last quarter the company took over the #4 position for total shares in the bubbly category among all brewers after more than doubling its US seltzer share. Leadership recently announced a goal of achieving a 10% share of the US seltzer market by the end of 2021. With the company’s diverse repertoire of brands, as well as its continued investment in the category, the lofty goal is attainable.

During the company’s Q2 earnings call CEO Gavin Hattersley stated, “This significant premiumization of our portfolio was led by the strong growth of our U.S. hard seltzers, where we doubled our share of the U.S. hard seltzer segment in the second quarter. We took over as the global brewer with the fastest-growing U.S. seltzer portfolio.”

The company recently made headlines when it discontinued Coors Seltzer in the US after the brand spent less than a year on the market. The move allowed the company to focus on Vizzy and Topo Chico Hard Seltzer.  Coors Seltzer is performing extremely well in Canada achieving, according to the company, “double-digit share in some retailers.”

Vizzy Hard Seltzer

As for Vizzy and Topo Chico Hard Seltzer, both brands are excelling in the US market. After a successful launch of a Vizzy’s Hard Seltzer Lemonade Variety Pack earlier this year, the brand recently announced a Watermelon Variety Pack featuring four different fruit flavors combined with real watermelon juice. Flavors include Blueberry Watermelon, Mango Watermelon, Passionfruit Watermelon, and Kiwi Watermelon.

Each 12 ounce can of Vizzy contains 100 calories, only 1 gram of sugar and an ABV of 5%. All of Vizzy’s products, including its new Watermelon Variety Pack, contain antioxidant vitamin C from superfruit acerola cherries.

Topo Chico Hard Seltzer

Topo Chico Hard Seltzer, which Molson Coors produces and distributes as part of an agreement with The Coca-Cola Company, continues to grow. According to the company, “We’ve only got [Topo Chico] distribution in 16 markets. It’s already the number three new item in the segment. It’s quickly become a fastest-turning seltzer brand in Texas, the number three fastest-turning seltzer overall back behind White Claw and Truly.”

The company is also working on a Topo Chico Ranch Water offering and intends to continue expanding the brand’s distribution footprint.

Topo Chico Hard Seltzer comes in four flavors including Strawberry Guava, Tangy Lemon Lime, Exotic Pineapple, and Tropical Mango. Each 12 ounce can of Topo Chico contains 100 calories and an ABV of 4.7%.

Global Growth of Hard Seltzer Category

Molson Coors’ global hard seltzer portfolio is growing as well. The company plans to invest heavily in its international seltzer brands as the category continues to skyrocket in popularity across the globe.

“Vizzy specifically has earned the number one spot in the on-premise in key regions like Ontario… In Europe, Three Fold in the U.K. and WAI Moment in Central and Eastern Europe continue to build distribution and consumer awareness with a strong mix of brand advertising,” Hattersley explained.

“The category is still at an early stage, but we are well positioned to win share and develop our portfolio as popularity around hard seltzers continues to grow,” continued Hattersley.

Hard Seltzers weren’t Molson’s only successful beverage this quarter. Beer sales are improving as on-premise venues begin to reopen after pandemic-related restrictions forced them to close. Hattersley also praised the company’s RTD category, “RTD beverages are…an emerging and fast-growing segment.

In fact, RTD sales really outpaced spirits, and that gap is only going to likely widen in the future. And competing in this space is a natural fit for companies like ourselves.” Molson Coors’ RTD brands include Proof Point canned cocktails featuring real spirits as well as Superbird Palomas, a line of canned tequila cocktails TAP distributes as part of an agreement with Casa Komos Beverage Group.

Molson Coors’ extensive Beyond Beer offerings helped to secure a positive outcome for the company’s second quarter. Hattersley is excited for the beverage titan’s future. The CEO stated, “We’ve had our share of challenges over the last several years. But that is changing, and today the signs all say the same thing: Molson Coors’ future is bright…”

Shirani Jayasuriya
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