Molson Coors moving finance, human resources to Milwaukee

Molson Coors moving finance, human resources to Milwaukee

Molson Coors moving finance, human resources to Milwaukee

Molson Coors will book restructuring charges of $120 million to $180 million U.S.to cover expenses such as severance, lease exit costs and employee relocation.

It also will change its name from Molson Coors Brewing Co.to Molson Coors Beverage Co., effective in January. Its four business units - U.S., Canada, Europe and global - will be consolidated into North America and Europe, with other regions reporting to those two. "We can continue down the path we've been on for several years now, or we can make the significant and hard changes necessary to get back on the right track", Gavin Hattersley, Molson Coors president and chief executive officer said in a statement.

"But as the world around us rapidly changes and the nature of competition intensifies, our business performance is lagging", said Hattersley during a conference call with analysts after the company released its third-quarter results.

The revamp will leave Molson Coors with two "streamlined" business units - one for North America, and one for Europe.

Molson Coors shares have fallen roughly 3% since the beginning of the year, while the Standard & Poor's 500 index has increased 21%. This signals a shift to other non-beer products.

Molson Coors' future direction became more clear today following the announcement that the company will restructure its operations and slash its workforce. "We can continue down the path we've been on for several years now, or we can make the significant and hard changes necessary to get back on the right track", Hattersley, who was USA unit head till September, said.

The $150 million annual savings will be reinvested in marketing to support core brands such as Coors Light and Miller Lite, drive innovation in non-beer products such as Cape Line Sparkling Cocktails and Arnold Palmer Spiked, and above-premium offerings such as Blue Moon and Peroni.

To underscore its focus on diversification, Molson Coors plans to drop "Brewing" from its full corporate name. On a per-share basis, the company lost $1.86.

That exceeded Wall Street's expectations, according to Zacks Investment Research.

Net sales at Molson fell to $8.09 billion during the first nine months of the year, down 3% compared with the same period last year. The company's US depletions (sales-to-retailers) declined 3.9%, while shipments (sales-to-wholesalers) declined 6.2% for the three-month period ending September 30.

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