Molson Coors Beverage Company (TAP-A)TAP-A

Molson Coors Beverage Company: A Comprehensive Overview

Company Profile:

History and Background: Molson Coors Beverage Company emerged from a historical merger in 2005 between Molson of Canada and Coors of the United States. Today, the company holds extensive reach with operations in North America, Europe, and Asia. Their brands offer a diverse range of beers, ciders, and other alcoholic beverages to a global audience.

Core Business Areas: Primarily, Molson Coors focuses on brewing and selling beer across diverse market segments. In addition, they are involved in:

• Wine and spirits: 3.3%, US segment with an exclusive import and production arrangement with Belgian brewery Duvel Moortgat and a partnership with E.&J. Gallo to import its Barefoot Wine products to Canada.
• Cider and flavored drinks: 18.9%, European segment**
• Malt & other: 6.9%, US segment: with a line of specialty malts to brewers and distillers across the globe.

Leadership Team and Corporate Structure: Molson Coors features a leadership team built by experience and diversity. Gareth Maguire leads as President & CEO, alongside various key executives overseeing areas like finance, human resources, research and development, technology, and sustainability. The company boasts a Board of Directors, comprised of seasoned industry leaders like Peter Swinburn (Chair), Karen Batra, and others, providing diverse expertise with significant global market knowledge.

Top Products and Market Share:

• Top Brands: Bud Light, Coors Light, Miller Lite, Carling, Molson Canadian, Staropramen
• Global Market Share: 8th largest by sales volume. In some countries including Canada, Eastern Europe, and the UK they rank first.
• US Competitive Position: Second biggest US brewer in market share

Total Addressable Market:

The global alcohol industry market holds a vast value at USD 1 Trillion (2020 figure) and is projected to reach a valuation of USD 1.4 Trillion by 2028. While beer specifically contributes significantly to this, their market segment share and future projections are difficult to determine without detailed insights into further industry subcomponents. This market is dynamic in size due to cultural, regulatory, and socio-economic factors influencing trends consistently.

Financial Performance:

In 2022:

• Revenue: US*3.9B (775 Mil loss from discontinued operations due to business closures in Russia/Ukraine)
• Net Income: $3.98B (570 Mil gain from selling US Molson Coors Distributing Co)
• Profit Margins: Gross 57.95%, Operation 9.69%, EBIT 11.99%
• EPS: $8.33

Dividends and Shareholder Returns:

• Dividend Policy: Steady quarterly dividends with occasional fluctuations due to share restructures (buy, sales/spinoffs)
• Current Yield: 8.1773% for FY23 and an average of 4.5134% through Q4FY22
• Historical Growth EPS and dividends have trended upward since 2017 after significant reductions through 2015 (a consequence of their 2002 merger and its initial difficulties) to align profitability within the North American markets.

Historical Growth:

• Steady expansion through strategic M&A (Miller-Coors 2002, Staropramen 2008, Cobra in Australia 2011, Canadian cider producer with Archibald Cox in 2011, US craft brew MillerCoors' Tenth and Blake Beer Company in 2019)
• Recent focus on brand innovation: Coors, Vizzy 0.0.

Market Dynamics:

• Strong market for alcoholic beverages with global and diverse preferences driving consumption of its numerous varieties.
• Industry trends highlight growing low and no-alcohol beverage consumption (Vizzy 0.0).
• Competition with larger global brands and smaller craft-brew companies drives innovation.

Competitors:

• AB InBev: US stock symbol BUD
• Heineken: US stock symbol HEINY - larger in European and South American markets.
• Constellation Brands: US stock symbol STZ - larger presence of Wine through Gallo partnership
• Craft Brews: Significant impact on local/US markets

Key Challenges:

• Intense market competition
• Shifting consumer demand towards craft/low-alcohol beverages
• Regulatory changes impacting global supply/demand chains (tariffs etc.)

Key Opportunities:

• Emerging middle class/new market expansion (Asia etc.)
• Focus on niche markets through acquisitions (craft breweries, non-alcoholic market trends like Vizzy 0.0)

Recent Acquisitions:

• 2022 (details limited for acquisitions outside Canada)
• • *Two Roads Brewing Co. (strategic craft beers for North America) Explanation: Expands craft/specialty brew portfolio
• 2021 * HEXO Canada Corp.(8125547 Canada Inc) (Cannabis products in Canada) - Explanation: diversification initiative * *Atwater Brewery **(11322268 Canada Inc*) * Explanation of Acquisition and strategic fit: expanding presence in Canadian/craft brewery market (acquisition from Labatt).

AI-Based Fundamental Rating:

• Overall Score : 7.4 (out of 10 - indicative but requires expert consideration for investment) based on:

  • Strong brands: +2 Points
  • Solid financial health (2022): **+1.50 Points **
  • Dividend track: +1 Point - subject to recent restructures
  • Competition, global markets are challenges: **-1.6 **(with significant potential if market dynamics addressed through acquisitions etc.)

Sources:

• The Molson Coors Beverage Company Website: www.molsoncoors.com
• Investopedia: Molson Coors - Fundamental Analysis - https://www.investopedia.com.br/fundamental-analysis/molson-coors/
• Yahoo Finance: (Company Profile) - https://finance.yahoo.com/quote/TAP.TO/?p=TAP.TO Note: Information gathered through publicly available materials on the internet

Disclaimer: This is informational. This is neither a complete financial analysis
nor recommendation on investment of or regarding Molson Coors Beverage Company (TAP/NYSE-MCF.TO). Always consult finance/industry expert professionals for comprehensive information before making individualinvestment choices

Additional Resources and Notes:

• For comprehensive and up-to-date financial analysis it is strongly recommend to rely on the most recent official company filings (10K & annual reports) and consult expert analysts before investment.