Without games on the nation’s TV screens, beer sales are getting dented up north. Hockey generates a lot of beer-drinking in Canada–at bars, in homes or at the rink. It’s also an important way Molson brands Coors Light and Canadian in that market. CEO Peter Swinburn told Dow Jones that there’s no way the company can replicate the marketing reach the NHL offers, even if it diverted all ad spending from hockey to other outlets. So challenges in Canada appear likely to persist until the NHL and players reach a deal.
Company-wide, Molson Coors’ third-quarter profit inched up 0.5% as the brewer’s volume soared, thanks to the acquisition of a European brewer, though expenses also jumped. The brewer reported sharply higher sales, as results were bolstered by the first full quarter of the company’s $3.4 billion acquisition of Central and East European brewer StarBev, which offset weakness in other markets. Profit slid in the U.K., Canada and international segments.
Mr. Swinburn said Molson Coors saw lower demand across the brewer’s businesses during the quarter and hinted at problems facing the company in the current quarter.
“We expect the fourth quarter to be the most challenging of this year, with difficult profit comparisons in Canada and the U.K. and higher costs in the U.S. and Central Europe,” Mr. Swinburn said.
