New Molson Coors CEO to address declining sales

USA | It would be cruel to say that it was only a matter of time. But after another set of disappointing figures, Molson Coors’ CEO Mark Hunter is stepping down in September 2019.

Mr Hunter, 56, who oversaw the acquisition of MillerCoors in 2016, which turned Molson Coors into the number two brewer in the US, will retire on 27 September 2019, the company said on 31 July 2019. He will be succeeded by Gavin Hattersley, 56, who currently serves as CEO of Molson’s US subsidiary MillerCoors.

The brewer’s second quarter sales and earnings had missed analysts’ expectations. Making matters worse, Molson Coors had to admit to a drop in demand, particularly for its largest brand, Coors Light.

Molson Coors’ net sales dropped 4.4 percent from a year ago to USD 2.95 billion in the second quarter, although forecasts had aimed for sales in the region of USD 3 billion. Sales in the US, its largest market, fell 2.9 percent from a year ago, while sales in Canada declined 6.1 per cent.

The brewer’s share price has declined continuously over the past two years, in fact shedding over 40 percent of its value. Analysts and shareholders cannot have been happy. Mr Hunter did the only sensible thing and bowed out.  

“There will be change,” Mr Hattersley promised during a recent call with analysts. “We need to consider all options that we can take to maximise the future potential of our business and to create additional firepower to put behind our brands in order for us to innovate, and that’s what I plan to do.” Mr Hattersley’s top priority will be to focus on innovation to develop new beverages, including premium beers and seltzers.

According to the Financial Times newspaper, Mr Hunter joined Bass Brewers in 1989, and has been with Molson Coors since its acquisition of the UK business in 2002. Before taking the helm of the company, he was CEO of Molson Coors Europe.

Mr Hattersley has been CEO of MillerCoors since 2015. He previously served as Molson’s chief financial officer and before that he was CFO of MillerCoors.