Molson Coors Beverage Co. has seen a boost in its sales and market value thanks to its increased marketing efforts for its core brands, especially Coors Light. The company has capitalized on the consumer backlash against Bud Light, which faced a boycott last year over a controversial promotion. In this article, we will explore how Molson Coors has gained an edge over its rivals in the competitive beer industry.
Molson Coors Spends More on Marketing Its Core Brands
Molson Coors has invested more in marketing its core brands, such as Coors Light, Miller Lite, and Coors Banquet, in the fourth quarter of 2023. The company reported that its marketing and administrative spending increased 19% from a year earlier, while its net sales and earnings beat average estimates. The company said that it was “well positioned to benefit from the significant shifts in consumer purchasing habits,” particularly in its premium segment.
One of the factors that contributed to the shift in consumer preferences was the Bud Light boycott, which started in August 2023. Bud Light, the flagship brand of Anheuser-Busch InBev NV, faced a backlash from some of its loyal customers after it launched a campaign featuring a transgender influencer. The campaign, which aimed to celebrate diversity and inclusion, was seen by some as offensive and insensitive to the traditional values of beer drinkers.
As a result, many Bud Light fans switched to other brands, such as Coors Light and Miller Lite, which are owned by Molson Coors. According to a survey by YouGov, Bud Light’s brand perception score dropped from 24 to -8 in a month, while Coors Light’s score rose from 8 to 18, and Miller Lite’s score rose from 6 to 164. Molson Coors also reported that its core brands grew in the US, with Coors Light, Miller Lite, and Coors Banquet each up by double-digit percentages.
Molson Coors Takes Advantage of the Super Bowl to Promote Coors Light
Molson Coors did not miss the opportunity to showcase its Coors Light brand during the Super Bowl, the biggest event in the US sports calendar. The company aired a 30-second commercial featuring rapper LL Cool J driving a train through a snowy landscape, delivering Coors Light to thirsty fans. The ad, which was part of the “Made to Chill” campaign, highlighted the refreshing and relaxing qualities of the beer.
The Super Bowl ad was a strategic move by Molson Coors to attract more customers who may have been dissatisfied with Bud Light, which also had a strong presence during the game. Bud Light ran two ads, one featuring a whimsical genie who granted wishes to beer drinkers and another featuring a medieval-themed crossover with HBO’s Game of Thrones. The latter ad, which ended with a dragon setting fire to the Bud Light kingdom, was widely praised by critics and viewers but also sparked some controversy for its violent tone.
Molson Coors, on the other hand, opted for a more upbeat message, which may have resonated better with some consumers. The company also launched a promotion that offered free Coors Light to anyone who tweeted the hashtag #RefreshTheBigGame during the Super Bowl. The promotion, which was limited to 21 states, aimed to reward fans who were bored or frustrated by the game, which was a low-scoring and defensive affair.
Molson Coors Sees Its Market Value Surge as Bud Light Loses Ground
The increased marketing spending and the successful Super Bowl campaign have paid off for Molson Coors, which has seen its market value surge by more than $2 billion since the Bud Light boycott began. The company’s share price rose from $51.32 on August 1, 2023, the day the Bud Light campaign was launched, to $63.45 on February 13, 2024, the day the company announced its fourth-quarter results. That represents a 23.6% increase in less than seven months.
Meanwhile, Bud Light’s parent company, Anheuser-Busch InBev, has seen its share price decline from $95.67 on August 1, 2023, to $88.12 on February 13, 2024, a 7.9% decrease in the same period. The company has also faced other challenges, such as higher commodity costs, lower volumes in some markets, and increased competition from craft beers and hard seltzers.
Molson Coors has shown that it can take advantage of the changing dynamics in the beer industry and win over new customers with more marketing and innovation. The company has also announced plans to launch new products, such as a hard coffee, a non-alcoholic beer, and a cannabis-infused beverage, in 2024. Whether these initiatives will help Molson Coors maintain its momentum and challenge Bud Light’s dominance remains to be seen.
