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Home / Business / Molson Coors changes its name and will cut up to 500 jobs

Molson Coors changes its name and will cut up to 500 jobs



Its official corporate moniker is Molson Coor's Brewing Company. But the new name will be Molson Coor's Beverage Company.

Molson Coors ( TAP ) who also makes Coor's Light, Blue Moon and a number of other beers, announced the changes related to the latest income report, which was not good. The shares fell 4% on the news.

Sales and profits were both down from a year ago and boomed on Wall Street's forecasts. The company also announced a changeover that will result in between 400 and 500 positions. According to the company's latest annual report, Molson Coors had around 17,750 employees worldwide, 7,300 of them in the United States.

Molson Coors said it plans to consolidate and reorganize office locations. The Denver office will close, a fantastic decision considering how synonymous Coors and Coors Light are with the Colorado and Rocky Mountains. (Of course, the company still has the Coors Brewery in Golden and plans to spend more on modernizing it.)

Chicago will become the company's new North American operational headquarters. Molson Coors also said that several positions based in offices across the United States, now all will be relocated to the Milwaukee office.

The company said it expects to incur restructuring costs ̵

1; such as severance pay, employee relocation expenses and costs associated with leaving a lease in Denver – of around $ 120 million to $ 180 million over the next two years.

A need for fresh new drinks

"Our business is at a bending point. We can continue down the path we have been going for years now, or we can make the significant and difficult changes that are needed to get back on track, "said Molson Coors CEO Gavin Hattersley, who took over as CEO last month.

"Our revitalization plan is designed to streamline the company, move faster and free up resources to invest in our brands and capabilities," he added.

As part of the changes, Molson Coors says it will invest. "significantly" in more expensive beers in what is called the "Over Premium" category – which the company said is the fastest growing part of the beer industry.

But the company also said it plans to move "beyond beer." Molson Coors has already launched canned wine and "hard" alcoholic coffee products this year, and the company said it will look to launch even more non-beer products . Therefore, name changed.

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Molson Coors said it will also place a greater focus on innovation faster – with the goal of reducing the time it takes to bring new products to market from 18 months to as little as four months.

The movements are clearly an attempt to lift sagging. And Molson Coors isn't the only alcoholic beverage company trying to diversify to rejuvenate growth.

Budweiser brewer AB InBev ( BUD ) has also been hurt by weak beer sales in the United States – as well as China – and has committed to growing in it spiked seltzer market as a result. And Corona owner Constellation Brands ( STZ ) has invested in cannabis, and took a large stake in the Canadian pot company Canopy Growth ( CGC ) .

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