E-Malt.com News article: USA: Molson Coors doing whatever it can to keep up with rising demand for craft beer

Molson Coors Brewing has a problem, and it's a crafty one.

The premium light beer that has been the mainstay of the company for generations continues to be one of the world's most popular brands, but there are signs of trouble, The Denver Post reported on May 6.

Light beer sales have been flat or declining. Consumer surveys suggest people have grown tired of the taste. And the more expensive craft-beer market has been growing larger every year.

In a recent interview with The Denver Post, Pete coors, the 67-year-old chairman of Molson Coors, said his company is doing whatever it can to keep up.

"Basically the biggest trouble we have is on-premise sales," Coors said. "We have a lot of bar owners who are enamored with craft beers. They are beginning to take off the premium light handles and putting bottles behind the bar instead and replacing the handles with craft beer handles. We lose 50 percent of our volume when that happens."

Coors has compelling reasons for bar owners to keep its beers on tap.

"Having a premium light brand — whether it's Coors, Miller or Bud — on tap actually improves the economics of their business," he said. "People stay in their seats an average of 18 minutes longer when they have a light premium beer on tap. That means they are spending more money, leaving bigger tips."

Another Coors product, Blue Moon, a Belgian white, remains the No. 1 selling craft beer in the country.

"We know a lot about brewing crafty beers, and we are looking at new things all the time," he said, adding that Colorado Native and Batch 19 have been popular additions. "We have a whole portfolio. Anheuser-Busch has a huge portfolio. They have acquired Goose Island and others. We bought a craft brewery in Georgia, Terrapin (Beer Co.)."

Last month, the Golden-based Coors Brewing Co. won two gold medals at the World Beer Cup for George Killian's Irish Red and Coors Light and was named champion large brewery and brewmaster.

Coors said he is baffled about trends showing the more expensive craft beer market growing by about 7 percent a year, while the premium light beer market stays flat and the economy beer market, with brands such as Pabst Blue Ribbon and Keystone, has dropped by 7 percent or even more.

"People are staying at home now, not buying cars or houses," he said. "They have money to spend. They want to spend it on something that they think has more value. ... The world is very different."

Not for Pete Coors, who said he still drinks the same beer he's consumed for decades.

"I am a Coors Banquet drinker," he said. "I grew up on it and just can't get myself to change."


07 May, 2014