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USA: Coors is prepared for a “challenging” first half of 2004, according to the company’s chief financial officer. Speaking to analysts in New York yesterday, Tim Wolf said that Q1 business this year in the Americas will be challenging, thanks to a $3.1m gain in the corresponding quarter a year ago from the sale of a California warehouse and $4.2m in additional revenue from a favourable arbitration ruling last year.

Wolf also warned that about a quarter of this year’s marketing spend for the introduction of Coors’ low-carbohydrate beer, Aspen Edge, will hit in Q1 this year. These combined factors will hurt profits for the brewer by around $10m in the first quarter.

Regarding marketing, chief marketing officer Ron Askew said the brewer’s initiatives in 2004 would focus on responding aggressively to low-carb “threats” and “opportunities,” increasing its investment in Coors Light and Coors Original, stabilizing Zima with relevant product news and turning Keystone, Killian's, Blue Moon and another brand into “street warriors,” Askew said, without defining the term.

Coors will do that by shifting some money into “tactical programming” such as targeted promotions and distribution incentives, he said.

Askew added that there will be new product news about Aspen Edge in late April into May, but he would not elaborate further.


05 March, 2004