Molson Coors' Growth Program to Yield $450 Million in Savings
Molson Coors Beverage Co. released details about its Horizon 2030 growth optimization strategy during the recent Consumer Analyst Group of New York conference.
The company had previously announced the upcoming restructure following the appointment of new president and CEO Rahul Goyal, who pointed to a leaner, more focused approach supported by investments in tech capabilities.
He shares that the plan will help rewire the organization so it can better react to opportunities in the market. This will be done through ERP upgrades to augment and automate various areas of the supply chain, as well as investments in AI within the sales and marketing function.
"We're going to put capabilities in AI and analytics to make sure our sales teams are forward-looking … and when I talk about AI, this is not about using it in marketing just to create new brands and assets. We're obviously going to do that and drive efficiency, but how do we literally use it to make investment decisions?" said Goyal, according to statements shared from the event.
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The new approach will also revisit opportunities within premiumization and value.
"We are elevating that because in a T-shaped economy today, the value consumer is feeling the pressure, and they are looking for options within their budget," said Goyal, adding that it will be a very targeted, localized approach in selective markets to dig into deep consumer loyalty.
Regarding premiumization, the company said it is underrepresented in the U.S. As such, Molson Coors will focus on growing its beyond beer category, where it sees consumer needs evolving.
As it makes decisions around its portfolio, Molson Coors will consider M&A activity to augment and fill gaps as needed, said Goyal.
The strategy is wrapped up in a three-year cost-savings program that is expected to yield $450 million in savings beginning this year, according to CFO Tracey Joubert.
