Molson Coors is leaving Denver as part of 'revitalization plan'

Molson Coors is leaving Denver as part of 'revitalization plan'

It will also see the company change its name to Molson Coors Beverage Company to better reflect its strategic intent.

"Our business is at an inflection point", Molson Chief Executive Gavin Hattersley said.

Hattersley's vision for a new Molson Coors Beverage Company became crystallized prior to today's third-quarter earnings call with investors and analysts.

Molson Coors isn't planning to rely on major mergers and acquisitions to expand its stable of non-beer brands.

The move will be made effective from January 2020 and expects to reduce employment levels by approximately 400 to 500 employees.

The company plans to spend "several hundred million dollars" to modernize its brewery in Golden, Colorado, and will invest heavily in the growing category of higher-end beer. It will use those savings to improve its digital marketing capabilities and introduce new products more quickly, like the canned wine and hard coffee it unveiled this year.

"We can not wait and risk allowing the competition to continue passing us by, to outspend us, to out-innovate us and to outmaneuver us", Hattersley said during the call.

"The name speaks volumes about who we are and what is possible for our business", Hattersley said.

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

"We're going to be able to fund the good ideas without making the tradeoffs that we've had to make, potentially, in the past behind our bigger brands", Hattersley said.

"This is a lot of change, but we will execute it efficiently because we can not wait and risk allowing the competition to continue passing us by, to outspend us, to out innovate us, and to outmanoeuvre us".

The company expects to save $150 million by closing offices in Denver and elsewhere and simplifying its structure.

The plan was announced as the brewer, which keeps its books in US dollars, released its most recent quarterly results.

Meanwhile the brewer delivered a US GAAP net loss of $403 million, which it claims is predominately due to the Canadian Goodwill Impairment Charge. The result compared with a profit of $338.3 million or $1.56 per diluted share a year ago.

The company - which owns brands such as Coors Light, Carling and Blue Moon - reported a 3.2% decrease in net sales in the last three months, compared to the same period previous year.

Shares of Molson Coors were down 1.43 percent as of 11:50 a.m. ET on Wednesday.

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