ENP Newswire -
Release date- 08052014 -
This income growth was driven by positive pricing and sales mix, cost savings, and lower marketing spending, primarily due to timing differences versus last year.
'In the first quarter, we continued to gain share in the high-margin and fast-growing Above Premium space with
We have made Miller Lite more relevant for millennials by bringing back the Original Lite Can, and we gained share in the Premium Light segment. This month, we will continue to engage legal drinking age millennials around Premium Lights with the release of Coors Light's first line extension, Coors Light Summer Brew.'
First Quarter Highlights
Unless otherwise indicated, all amounts are in U.S. dollars and calculated in accordance with accounting principles generally accepted in the U.S. (U.S. GAAP). All percentages are versus the prior year comparable period and include
Underlying net income, a non-GAAP measure, increased 7.4 percent to
Total net sales increased 0.1 percent to
Domestic net revenue per barrel, excluding contract brewing and company-owned distributor sales, increased 3.3 percent.
Total cost of goods sold (COGS) per barrel increased 3.8 percent.
Domestic sales-to-retail (STRs) decreased 3.4 percent.
Domestic sales-to-wholesalers (STWs) decreased 3.0 percent.
Brand Highlights for the First Quarter
Premium Light portfolio STRs declined mid-single digits but still gained segment share in the first quarter, according to
Coors Light declined mid-single digits in the first quarter. The brand will connect with legal drinking age millennial consumers in 2014 by introducing new, cutting-edge designs on packaging each trimester. Last week, Coors Light introduced its first line extension, Coors Light Summer Brew, which will be available exclusively in 10 ounce cans while supplies last. Coors Light will engage sports fans and Latino consumers by continuing its partnership with the LigaMx soccer league and through advertising during this year's
Miller Lite declined mid-single digits in the first quarter, but achieved a high-single digit trend improvement in can STRs versus the fourth quarter of 2013. The brand brought back the Original Lite Can in the first quarter to tell the story of Miller Lite's authenticity to a new generation of legal age beer drinkers.
Based on these strong results, the Original Lite Can will be in-market through September, and an updated design inspired by the brand's original look will be unveiled in October across all packaging. This summer, Miller Lite will launch its 'Miller Time for America' campaign, which will encourage consumers to engage with the brand online for a chance to have their photos included in a national television commercial.
Above Premium portfolio STRs grew high teens in the first quarter and ahead of the industry in the segment. Innovations delivered excellent volume and value growth in Above Premium, led by
Coors Banquet grew mid-single digits in the first quarter and has grown for over seven consecutive years. In 2014, the brand launched one of the biggest media plans in its history, and Coors Banquet television advertising will air nationally throughout the year. Coors Banquet will continue to tell its story of timeless Western masculinity with four new can designs in market from April through June.
Financial Highlights for the First Quarter
Domestic net revenue per barrel grew 3.3 percent for the quarter as a result of favorable net pricing and positive brand mix.
Total company net revenue per barrel, including contract brewing and company-owned distributor sales, increased 3.4 percent. Third-party contract brewing volumes were down 4.5 percent.
Total COGS per barrel increased 3.8 percent, driven by commodity and brewery inflation, lower volume, and higher costs associated with brand innovation.
Marketing, general and administrative costs decreased by 6.4 percent. The decrease was driven primarily by timing of media investments and lower employee-related expenses.
Depreciation and amortization expenses for
Special items in the quarter included restructuring related costs of
Through its diverse collection of storied breweries,
Tenth and Blake also operates Crispin Cidery, an artisanal maker of pear and apple ciders using 100 percent fresh-pressed American juice. The company imports world-renowned beers such as
In the year ended
This press release includes 'forward-looking statements' within the meaning of the U.S. federal securities laws, and language indicating trends, such as 'anticipated' and 'expected.' It also includes financial information, of which, as of the date of this press release, the Companies' independent auditors have not completed their audit. Although the Companies believe that the assumptions upon which their respective financial information and their respective forward-looking statements are based are reasonable, they can give no assurance that these assumptions will prove to be correct.
Important factors that could cause actual results to differ materially from the Companies' projections and expectations are disclosed in
These factors include, among others, changes in consumer preferences and product trends; price discounting by major competitors; failure to realize anticipated results from cost saving initiatives and increases in costs generally. All forward-looking statements in this press release are expressly qualified by such cautionary statements and by reference to the underlying assumptions.
Mob: +44 207 659 0188
Mob: +44 771 742 8540
MillerCoors Results and Related Reconciliations
Underlying net income and EBITA are non-GAAP measures. Management of both companies believes that underlying net income and EBITA provide shareholders with a useful basis for assessing the profit performance of
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