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As it makes progress with Bud Light, Molson Coors will increase marketing spending by $100 million.

Coors Light and Miller Light combined, according to CEO Gavin Hattersley, are now 50% greater than Bud Light compared to last year.

In the second half of 2023, Molson Coors will increase its marketing spending by $100 million (£78 million), as the Canadian-American multinational outperforms its rivals by a wide margin.

“Coors Light and Miller Lite combined were 50% bigger than Bud Light by total industry dollars and 30% bigger than Modelo Especial in the second quarter,” asserted Molson Coors CEO Gavin Hattersley in a call with investors late on (1 August).

 

 Since the two businesses’ merger in 2005, Molson Coors has posted good quarterly sales, with its net sales for the three months ending June 30 reaching $3.3 billion (£2.6 billion), a 12% rise over the same period last year.

Following the controversy that engulfed the beer brand and its owner, AB InBev, in April of this year after a brief association with trans influencer Dylan Mulvaney ignited rage among conservatives in the US, it appears like Molson Coors is taking advantage of Bud Light’s recent troubles.

 

The upheaval in the US beer market is the result of the dispute, which has caused consumers to switch to other brands in greater numbers.

Hattersley explained the $100m rise in marketing spending by saying, “We intend to invest very strongly behind the momentum we’ve got.” He also stated that as the company moves through Q3, momentum “has not slowed down.”

 

Hattersley informed investors that the company’s marketing expenditure “is not just limited to the United States” and that Molson Coors, which also owns Carling, is investing more funds in its other markets to maintain its current success. The US will receive the “lion’s share” of the marketing budget, though.

While the Bud Light scandal undoubtedly helped Molson Coors, recent results also show that the company is benefiting from its updated marketing approach. Molson Coors changed their marketing strategy three years ago in reaction to Coors Light “losing dollar share quarter after quarter and year after year”.

 

Hattersley continued, “We radically overhauled our approach to marketing and media three years ago, which unlocked growth for our greatest brands.

Its brands are “demonstrably stronger in 2023 than they were in 2019” as a result of its approach since 2019.

According to Hattersley, Molson Coors “didn’t plan” on its “largest competitor’s largest brand” falling, and if it had occurred in 2019, it “would surely not have seen the sales benefit” that it has this year, with the company prepared to capitalize on Bud Light’s losses.

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