Beer Marketer's Insights - Molson Coors CEO Goyal's Day 1 Note to Distribs: 'We Must Transform Faster' & 'Close Our Portfolio Gaps'

New Molson Coors ceo Rahul Goyal hit ground running Wed with note to distribs and employees on Day 1 of his regime that pointed to co's progress against its "ambition to transform into a total beverage company." But "facing reality&hellip; it's not enough. We must transform faster, we must make changes that acknowledge the real challenges facing our business and industry, and we must address them with a sense of urgency - together," he wrote distribs. Those challenges include "softer-than-expected" industry, "impacting volumes" and "rising cost pressures." "We also need to close portfolio gaps and ensure our brands, systems and people are ready to drive growth." Recall it was under his predecessor Gavin Hattersley that Molson Coors Brewing changed its corporate moniker to "Beverage Company" to signal those intentions, which on NA side have included aggressive pushes via Zoa Energy and Fever-Tree mixers as well as failed efforts like La Colombe partnership. As strategy chief involved in most of those initiatives, Goyal's elevation suggests no change in that direction, tho as some of our contacts noted to us, even over his 24 yrs there he hasn't established very high profile, another priority now that he&#39;s in hot seat. In doing so, he needs to assure employees, wholesalers and other constituents that he won't neglect core brands even as he works to win adequate mindshare for diversifying mix of brands and categories in which MC plays these days. 'Championing Beer at Every Turn' with 'Consumer and Customer First'; 'Real Results' & 'Tough Decisions' Molson Coors has "remained committed to growing our core brands, premiumizing our portfolio and expanding our beyond beer business," he reiterated to distribs. But now "responding with urgency is imperative. Especially if we want to be the supplier that brings you the most value. That means we must be out front championing beer at every turn while also building our portfolio beyond beer."Rahul has "set the expectation with the entire Molson Coors team that, no matter their role, they are accountable for driving a consumer- and customer-first approach across the business . . . I've also made it clear that performance must be measured by real results. Looking ahead," Rahul continued, "this renewed focus paired with the realities impacting our business will require tough decisions. But I know from experience the Molson Coors team can do hard things." He concluded: "One of the biggest reasons we're confident in the path forward is that we work with the best distributor network in America . . . I look forward to winning together." (This story is adapted from one that ran earlier in our sibling letter Insights Express.)Naked Life Seems Low Priority At recent sales meeting, it was no surprise that Zoa Energy and Fever-Tree mixers received extensive discussion (BBI, Sep 18). But haven't heard much on its alliance with Naked Life mocktail player from Australia with which MC had forged distribution pact a year ago, starting with 5 canned entries. At time, citing Quantum and IRI data, MC cited Naked Life as #1 non-alc RTD in Australia and thereby "one of the biggest success stories in the global non-alc RTD category." It seems fair to conclude that brand is low priority now. From what we've heard, it's proved tepid performer in cluttered segment filled with well-crafted entries. As we reported, it recently forged alliance with another strategic player, SPC Global, with implications for its international development that haven't been spelled out (BBI, Aug 28).

Molson Coors CEO Goyal's Day 1 Note to Distribs: 'We Must Transform Faster' & 'Close Our Portfolio Gaps'

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