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MillerCoors further explains restructuring, cites aluminum pricing, freight costs and ‘significant reshuffling’ in marketing

October 23, 2018Keith Gribbins

In September, MillerCoors, the American subsidiary of Molson Coors Brewing Co., announced it was overhauling its organization to become more flexible, competitive and profitable. The big headline of this restructuring was the elimination of about 375 salaried positions — up from its initial estimate of 350 — as well as a big refocus on its Coors Light and Miller Lite brands. This week, MillerCoors has further explained this restructuring.

First off, the company noted it got rid of 375 positions “in part by not filling about 150 open roles.” The majority of other folks received a voluntary severance program.

There has also been a revamping of MillerCoors’ marketing strategies. The company will be appointing new marketing agencies for both Blue Moon and Leinenkugel’s after dropping Venables Bell & Partners in June. Those two “craft” brands fall under its Tenth and Blake umbrella, which is its craft and import business development arm.

But that’s not it. According to a story on Behind the Beer, MillerCoors’ news page, “changes also included significant reshuffling of the MillerCoors marketing organization,” including its economy portfolio (think Keystone Light, Hamm’s and Milwaukee’s Best) and the Coors family of brands. Some other interesting insights from the article:

On the sales side, MillerCoors consolidated Texas to two management units, down from three, and moved New Mexico to the Arizona/Las Vegas management unit.

The changes come amid a tough year for MillerCoors and the broader beer industry. Volume for the overall industry is down 0.7 percent year-to-date through Oct. 13, according to Nielsen cross-channel and convenience data. MillerCoors volumes are off 3.6 percent. On top of that, cost pressures continue to mount. Aluminum pricing is near historical highs in part because of new tariffs and freight costs have soared because of a national trucker shortage.

In June, MillerCoors said an aluminum tariff could cost the company $40 million.

“It’s been a tough year,” Hattersley said. “But I know the quality of our people and our brands, and I believe we have a bright future ahead.”

Read more right over here.

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  1. Josh Daves says

    October 23, 2018 at 2:58 pm

    Making America Great Again one layoff at a time.

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