Molson Coors Beverage Company (TAP - Free Report) is on track with its strategy of growing in new spaces beyond the beer aisle, with the launch of its non-alcoholic product line this fall. The company, which was earlier called Molson Coors Brewing Company, renamed itself as Molson Coors Beverage Company in January 2020 to more precisely present its intent to expand beyond beer and into other growth adjacencies.
Its proposed line of non-alcoholic brands will mark its first step to date in its intent of expanding as a beverage company. It will also be the company’s first non-alcoholic innovation in partnership with L.A. Libations, wherein it acquired a minority stake in November 2019. In partnership with L.A. Libations, the company plans to launch four innovative non-alcoholic brands from its emerging growth division on the lines of health, wellness and social responsibility.
As part of its plan, the company is scheduled to launch the first set of the new brands called HUZZAH in South California in September. HUZZAH, which will be launched in the seltzer category, will be a pumped-up, full-flavored seltzer that will also include probiotics to support a healthy gut. Additionally, it will contain 3g or less of sugar per 12oz can and 15 calories or less. These will give it an edge over other seltzer brands in the market.
The company plans to launch HUZZAH on the online platform, DrinkHuzzah.com, along with select retailers in South California. The brand will be launched in three flavors — Strawberry & Hibiscus, Juicy Pear, and Raspberry & Lemon.
Following the launch in fall, the company will expand its non-alcoholic portfolio through innovative product developments. Its upcoming innovation pipeline will include MadVine — a 100% plant-based diet soda with zero calories, sugar and artificial ingredients. The MadVine line will be monk fruit- infused with recognizable ingredients like bourbon vanilla, yuzu lemon and black cherry. This will be launched in three flavors — Clean Cola, Yuzu Lemon-Up and Dr. Stepper.
The next in line will be Golden Wing, which is a grain-based milk alternative. The beverage will be made with top-quality barley and no additives, stabilizers or frothing agents, containing proteins and nutrients.
The company’s fourth line of non-alcoholic products is likely to be a nootropic performance beverage, which will provide enhanced focus and nutrition. It will also provide improved performance, without the troubles linked to high-caffeinated drinks for gamers and developers. This product is not yet formally announced by the company.
The above product launch indicates that Molson Coors is set out to expand beyond the traditional beer product line, be it CBD and cannabis products, non-alcohol beverages, and wines or spirits. The company’s partnership with L.A. Libations highlights its venture in the non-alcoholic beverage space. Moreover, it earlier launched non-alcoholic, cannabis-infused beverages through its joint venture with the HEXO Corp., for the Canada and Colorado markets. These launches clearly demonstrates the company’s focus on gaining share in the non-alcoholic beverage space.
Molson Coors is one of the largest brewers in the world and boasts a strong portfolio of well-established brands. The company’s focus on premiumization and cost savings has been aiding its bottom-line performance. In fact, it remains committed to growing its market share through innovation and premiumization. With a view to accelerate portfolio premiumization, the company has made significant additions to its above-premium brand portfolio in the past few years.
Shares of the Zacks Rank #3 (Hold) company have gained 2.7% in the past three months compared with the industry’s growth of 9.9%.
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The Boston Beer Company, Inc. (SAM - Free Report) delivered an earnings surprise of 26.1%, on average, in the trailing four quarters. It sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Brown-Forman Corporation (BF.B - Free Report) delivered an earnings surprise of 8.2%, on average, in the trailing four quarters. It currently has a Zacks Rank #2 (Buy).
Constellation Brands Inc (STZ - Free Report) presently has a Zacks Rank #2 and a long-term earnings growth rate of 10.2%.
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