Molson Coors had its biggest earnings miss in 4 years because consumers are too worried by tariffs to drink
- Molson Coors posted its worst earnings miss in four years as tariffs, inflation, and economic uncertainty hammered beer sales, prompting a sharp guidance cut, reduced spending, and a 7.8% drop in share price.
Molson Coors posted its worst earnings miss in four years, sending shares tumbling as Americans say “no thanks” to another round, spooked by President Trump's tariffs and a shaky economy.
The Coors Light and Blue Moon brewer reported a brutal first quarter for 2025, with net sales plunging 11.3% to $2.3 billion, missing analyst estimates by nearly $100 million.
The company’s adjusted earnings per share crashed to $0.50, far below the $0.83 Wall Street expected, and net income dropped 41.8% to $121 million.
The results fell 36% short of Wall Street estimates, marking its most significant miss since the 46% shortfall recorded in February 2021.
Shares fell nearly 8% to $52.35 at Thursday's market open from $56.79 at the close on Wednesday, but recovered some of the losses to end the day at $54.26.
With tariffs and inflation squeezing wallets, fewer Americans are reaching for a brew.
CEO Gavin Hattersley, who plans to retire at the end of 2025, pointed directly to the mood on Main Street: “Uncertainty around the effects of geopolitical events and global trade policy, including the impacts on economic growth, consumer confidence and expectations around inflation, and currencies has pressured the beer industry and consumption trends”.
The company now expects annual sales to decrease by low single digits, a sharp reversal from its earlier forecast for modest growth.
Hattersley elaborated: “The macroeconomic environment and its broad effects on the beer industry and consumer, as well as competitive pressures in EMEA & APAC, impacted our financial results in the first quarter. The global macroeconomic environment is volatile. Uncertainty around the effects of geopolitical events and global trade policy, including the impacts on economic growth, consumer confidence and expectations around inflation, and currencies has pressured the beer industry and consumption trends.”
The company says it is now postponing certain projects and reducing capital expenditure by $100 million, focusing only on “significant cost savings or critical growth initiatives".
Has Molson Coors 'lost its footing'?
Market watchers aren’t impressed.
"Amid leadership transition and lowered growth projections, the company seems adrift at a moment when strategic clarity is essential," said Zak Stambor, senior analyst at Emarketer, adding that Molson Coors "appears to have lost its footing."
But Molson Coors’ struggles are seemingly part of a broader slowdown hitting the beverage industry as tariffs and inflation make happy hour a luxury. Rival Constellation Brands also forecast downbeat sales and profit for fiscal 2026.
To turn things around, Molson Coors is betting on premium brews and non-alcoholic drinks.
“We believe we have the right strategy and a healthy balance sheet and strong cash generation to continue to execute it, while continuing to return cash,” Hattersley told investors.
This story was originally featured on Fortune.com