- Molson Coors Beverages is discontinuing its Coors Light Hard Seltzer brand in the U.S., but continues to see demand in the category.
- The company plans to focus on its Vizzy and Topo Chico Hard Seltzer brands.
- Earlier Thursday, Molson Coors reported second-quarter earnings topped analyst expectations.
Despite Molson Coors Beverages discontinuing its Coors Light Hard Seltzer brand in the U.S., the company said Thursday it continues to see demand in the category.
"We launched a number of hard seltzers in the U.S. market and got two clear winners in Vizzy and Topo Chico Hard Seltzer. In order to prioritize focus, and put all our investments and efforts behind our two clear winners, that led us to the decision," said CEO Gavin Hattersley on CNBC's "The Exchange."
The brand will be continuing in Canada because of its double-digit growth in that market.
Hattersley said that seltzer continues to be the company's fastest growing segment, so it is here to stay. He also hinted at plans to unveil new products in the next few years.
Last week, competitor Boston Beer Company's stock fell 26% after its earnings fell short of expectations due to weaker-than-expected demand for its Truly hard seltzer.
Molson Coors second-quarter earnings topped analyst expectations, with net income of $388.6 million, or $1.79 per share, which was nearly double last year's level. Revenue grew to $3.56 billion.
"This quarter represents the best results we have had since implementing our revitalization plan nearly two years ago, and it delivered the most top-line growth of any quarter in over a decade," Hattersley said in a press release.
Molson's stock remained flat despite the strong results, as investors worried about rising transportation and packaging costs.
"Transportation costs have been tight for the whole of this year. ... Just like everybody else in the industry, and anybody else using over-the-road haul, it has been tight," Hattersley said.
He said the company plans to adapt its transportion methods to be able to deliver its products quickly in the most "efficient and effective way," with increased costs taken into consideration.