Last updated on August 16th, 2012 at 11:54 am
MillerCoors LLC recorded a 32.5 percent increase in profits for the fourth quarter on growing market share for its Coors Light brand and ongoing cost savings related to the merger of Miller Brewing and Coors Brewing, reports the Denver Business Journal.
SABMiller plc of London and Molson Coors Brewing Co. of Denver, Colo., the co-owners of the Chicago-based join venture Miller Coors, reported that MillerCoors net income increased to $194 million in the fourth quarter of 2011, compared with $146.4 million in the same period a year ago. Net sales for the period increased to $1.75 billion from $1.72 billion.
The brewer, which has a major brewery and administrative offices in Milwaukee, Wisc., had earlier reported that Miller Lite volumes for the quarter were down in the mid-single digit percentages, while Coors Light volumes were down in the low-single digits. The drops contributed to an overall 3.3 percent volume decline for MillerCoors, according to the Journal.
Despite the dip in Coors Light volumes, the brand gained market share to become the No. 2 beer brand in the United States, surpassing Budweiser from rival Anheuser-Busch.
The firm also reported improvement in its Tenth and Blake Beer Co. portfolio of craft and import brands.
“We also saw strong growth in our craft and import brands like Blue Moon, Leinenkugel’s and Peroni Nastro Azzurro and we improved our brand mix,” said MillerCoors CEO Tom Long. “Our investment with retail chains is paying off as our distributors execute against new category management approaches with focus and discipline.”