We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Molson Coors Divests Irwindale Brewery to Boost Efficiency
Read MoreHide Full Article
Molson Coors Beverage Company (TAP - Free Report) is on track with its revitalization plan focused on achieving sustainable top-line growth by streamlining the organization and reinvesting resources into its brands and capabilities. In the latest development, the company announced the completion of the sale of its brewery property in Irwindale, CA, to Irwindale Brew Yard, a subsidiary of Pabst Brewing Company, LLC. This will help the company streamline its operations to boost efficiency across its network and reinforce liquidity.
We note that the producer of Coors Light and Miller Lite informed in January that it will stop production at its 40-year-old facility by September. The company had transitioned the production from Irwindale to the breweries in Golden, Colo and Fort Worth, TX. According to the earlier-negotiated settlement agreement, Pabst Brewing had the option of buying the brewery for $150 million.
Meanwhile, the company intends to invest in iconic brands and growth opportunities in the above-premium beer space; expand in adjacencies beyond beer without hampering support for its existing large brands; and creating digital competencies for commercial functions, supply-chain-related system capabilities and employees.
The company is building on the strength of its iconic core brands. Year to date, Coors Light and Miller Lite grew 6% and 9.5%, respectively, in the U.S. off-premise channel. Per Nielsen, it has expanded the combined U.S. segment share for Coors Light and Miller Lite for 24 straight quarters in the third quarter of 2020 (or six consecutive years). Moreover, it aims to stabilize share gains for its biggest brands in the total beer category. Furthermore, the company has been aggressively growing its above-premium portfolio and expanding beyond beer categories.
Markedly, shares of this Zacks Rank #2 (Buy) company have gained 8% in the past month against the industry’s 0.9% dip. The stock recently got a boost from top- and bottom-line beat in third-quarter 2020. This marked the company’s fifth straight quarter of bottom-line beat, while the top line surpassed the Zacks Consensus Estimate for the second consecutive quarter. Moreover, adjusted earnings improved year over year, benefiting from favorable net pricing in the United States and Canada, cost savings, and lower marketing, general and administrative expenses.
Brown-Forman (BF.B - Free Report) currently has a Zacks Rank #2. It delivered an earnings beat of 8.2% in the last four quarters, on average.
Carlsberg (CABGY - Free Report) , also a Zacks Rank #2 stock, has gained 13.9% in the past six months.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Image: Bigstock
Molson Coors Divests Irwindale Brewery to Boost Efficiency
Molson Coors Beverage Company (TAP - Free Report) is on track with its revitalization plan focused on achieving sustainable top-line growth by streamlining the organization and reinvesting resources into its brands and capabilities. In the latest development, the company announced the completion of the sale of its brewery property in Irwindale, CA, to Irwindale Brew Yard, a subsidiary of Pabst Brewing Company, LLC. This will help the company streamline its operations to boost efficiency across its network and reinforce liquidity.
We note that the producer of Coors Light and Miller Lite informed in January that it will stop production at its 40-year-old facility by September. The company had transitioned the production from Irwindale to the breweries in Golden, Colo and Fort Worth, TX. According to the earlier-negotiated settlement agreement, Pabst Brewing had the option of buying the brewery for $150 million.
Meanwhile, the company intends to invest in iconic brands and growth opportunities in the above-premium beer space; expand in adjacencies beyond beer without hampering support for its existing large brands; and creating digital competencies for commercial functions, supply-chain-related system capabilities and employees.
The company is building on the strength of its iconic core brands. Year to date, Coors Light and Miller Lite grew 6% and 9.5%, respectively, in the U.S. off-premise channel. Per Nielsen, it has expanded the combined U.S. segment share for Coors Light and Miller Lite for 24 straight quarters in the third quarter of 2020 (or six consecutive years). Moreover, it aims to stabilize share gains for its biggest brands in the total beer category. Furthermore, the company has been aggressively growing its above-premium portfolio and expanding beyond beer categories.
Markedly, shares of this Zacks Rank #2 (Buy) company have gained 8% in the past month against the industry’s 0.9% dip. The stock recently got a boost from top- and bottom-line beat in third-quarter 2020. This marked the company’s fifth straight quarter of bottom-line beat, while the top line surpassed the Zacks Consensus Estimate for the second consecutive quarter. Moreover, adjusted earnings improved year over year, benefiting from favorable net pricing in the United States and Canada, cost savings, and lower marketing, general and administrative expenses.
More Solid Beverage Stocks
Boston Beer (SAM - Free Report) delivered an earnings surprise of 23.1% in the last four quarters, on average. It sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Brown-Forman (BF.B - Free Report) currently has a Zacks Rank #2. It delivered an earnings beat of 8.2% in the last four quarters, on average.
Carlsberg (CABGY - Free Report) , also a Zacks Rank #2 stock, has gained 13.9% in the past six months.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>