UK: Molson Coors significantly scaling down UK operations

Molson Coors is significantly scaling down its UK operations to help stave off damage from the coronavirus crisis, The Grocer reported on April 15.

The Carling and Coors owner has rationalised its range of SKUs – it is understood just six are currently available – “to focus on a smaller group of its core products”.

This would help ensure the safety of its staff and “reduce supply chain complexity for its customers”, it claimed.

The brewer said it was prioritising “its most in-demand and popular lines, including Carling, Coors Light, Doom Bar, Aspall, Rekorderlig and Cobra, while ensuring that pack formats and SKUs available are suitable for all of its customers”.

However, industry sources have expressed frustration at no longer being able to access popular SKUs. One major buying group member said: “In our channel they have ditched profitable lines like pint cans in favour of 18-packs, which they have told us for years makes little to no money for them.”

It was “by far the worst situation of any of the brewers”, they added.

Molson Coors off-trade sales director Kevin Farwell stressed the “absolute priority” of the business was protecting the health and wellbeing of its staff, having instructed staff who can work from home to do so from 16 March, and asked those in vulnerable groups to isolate themselves at home.

“We recognise that consumers may miss some of our brands for what we hope will be a short period of time, but believe they will understand that protecting our employees by asking vulnerable groups to remain at home is our priority at the moment,” he added.

“With a simplified range, we’re working hard to make sure all of our customers can stock our most in-demand brands in a variety of formats.

“We remain fully committed to all of the brands and pack formats across our portfolio in the long term, and look forward to bringing back a full suite of beverages for consumers to enjoy in due course.”

Brewers, whose businesses straddle both the on and off-trade, have had to cope with the loss of an entire channel over recent weeks.

Carlsberg, for instance, has furloughed numerous on-trade roles across its business. A Carlsberg spokesman said: “These are challenging times for most businesses in the UK, including our own, which has been significantly impacted by the temporary closure of the on-trade.”

However, he stressed the beer brand had seen “increased demand in the off-trade” and was “especially thankful to all of our production teams who are working with such dedication” to meet that demand.

12 April, 2020