Coors capped an excellent 2007 with sales-to-retailer growth between 6-7% in 2d half in 50 states. Up 6.2% in 4th qtr, following 6.9% growth in 3d qtr (trends come down a little if you include still tuff Puerto Rico). What’s more, Coors momentum continued with sales up “high single digits” in 1st 5 weeks of 08, Coors said in conference call. Those are startling trends, unseen in many a moon from a big brewer. Coors STRs up in 45 of 50 states in 07. Coors sales-to-retailers up about 4% in 07 compared to AB & Miller “organic” STR trends down 0.3 and up 0.5 respectively. Coors reported 776,000-bbl, 3.3% shipments gain to 24.25 mil bbls in its US segment. That’s as big as any bbls gain that Coors got in last 15 yrs (99 and 00 very similar). But true trend even better, because Coors actually reported 53 weeks in its 2006 calendar (don’t ask). That means on apples-to-apples basis, in calendar 2007, Coors up another 330,000 bbls or so, Coors said. That’s 1.1 mil bbls, Coors’ biggest gain since 1990, when Coors still expanding eastward.
Coors very nearly fired on all cylinders in its brand portfolio. Consider: Coors Light up 3.6% and up mid-single digits last 2 qtrs. Keystone Light up near double-digits and double digits last 2 qtrs. And Blue Moon soared to over 700,000 bbls, passing Sierra Nevada to become #2 craft-style brand. Even Coors Banquet recorded its first volume increase in 22 yrs. It shrank from 13.5 mil bbls at its mid-seventies peak to about 1 mil bbls. But in 07, Banquet progressively heated up as yr went on. Grew double digits in 4th qtr. In fact, Coors had 3 brands up double digits in 4th qtr. Only Molson and Killian’s continued to lag with new initiatives planned for each in 08.
Total Molson Coors surpassed analyst expectations in 4th qtr on US strength, cost savings and more. Stock popped more than 10% after Feb 12 results. Molson Coors has consistently more than delivered its targets on cost savings. And it did so again in 07. As a result, cost of goods sold per bbl up only 0.9% for full yr. Rev per bbl up 2.1%, virtually all front-line. Front line increases similar to AB, but it didn’t get same mix-shift benefit as AB/Miller. Coors US oper income up 28% to $295 mil pre-special items.