Molson Coors Beverage Company: A Bullish Bet on Non-Alcoholic Beverages
Saturday, Jan 11, 2025 10:42 am ET
As an investor, keeping an eye on short seller sentiment can provide valuable insights into a company's potential. In the case of Molson Coors Beverage Company (TAP), the short seller sentiment is bullish, indicating that the market may be underestimating the company's growth prospects. Let's dive into the reasons behind this bullish sentiment and explore how Molson Coors' strategic shift towards non-alcoholic beverages is driving its financial performance.

Molson Coors Beverage Company, a multinational beverage and brewing giant, has a diverse portfolio that includes beer, spirits, and non-alcoholic beverages. With a 4.4% share of the global beer production, Molson Coors is the 5th-largest brewer in the world. The company's strategic focus on premiumization and expansion into the Beyond Beer segment has contributed to its long-term growth prospects.
One of the key factors driving Molson Coors' growth is its commitment to becoming a total beverage company and connecting with consumers on more occasions. The company has been actively growing its portfolio of non-alcoholic beverages in the U.S. market, providing consumers with more options to choose from and catering to their evolving preferences. This expansion has resulted in significant growth for Molson Coors' non-alcoholic beer brands, such as Blue Moon Non-Alcoholic and Peroni 0.0%.
According to Chicago-based NIQ food-store data for the week ending Dec 28, Molson Coors' non-alcoholic beer brands were up 89% over the past 12 weeks, gaining 2.1 share of the non-alcoholic beer segment. This growth is more than any other company in the segment and is a testament to the company's successful launch and marketing of its non-alcoholic beer brands. For instance, Blue Moon Non-Alcoholic, released less than a year ago, has already broken into the top 10 non-alcohol brews in dollar share, landing at No. 9 for the last 13-week and four-week period. Similarly, Peroni 0.0%'s dollar sales have grown by nearly 83.5% for the 52 weeks ending Dec. 29 compared to the previous year.
Molson Coors' focus on premiumization and expansion into the Beyond Beer segment is also contributing to its long-term growth prospects. The company is investing in its premium non-alcoholic brands, such as Peroni Nastro Azzurro 0.0%, which has experienced significant growth in sales. Additionally, Molson Coors is strategically partnering with other companies to expand its production capabilities and reach new markets. For example, Pabst Brewing Company has announced a new brewing contract agreement with Anheuser-Busch InBev, which will provide Pabst with greater supply and the potential to grow its portfolio.

In conclusion, Molson Coors Beverage Company's bullish short seller sentiment is well-founded, as the company's strategic shift towards non-alcoholic beverages is driving its financial performance. By focusing on premiumization and expanding into the Beyond Beer segment, Molson Coors is well-positioned to capitalize on changing consumer preferences and drive long-term growth. As an investor, keeping an eye on Molson Coors' non-alcoholic beverage offerings and its strategic partnerships can provide valuable insights into the company's growth prospects and potential investment opportunities.