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Molson Coors Profit Plunge: Tariffs & Weak Spending Bite
19 Feb
Summary
- Annual profit expected to fall 11%-15% due to higher tariffs.
- Consumer spending weakness and shifting alcohol preferences impact sales.
- Aluminum costs are projected to drag down profit by $125 million.
Molson Coors predicts a sharp decline in its 2026 adjusted earnings per share, forecasting a drop between 11% and 15%. This forecast follows a difficult 2025 marked by weak demand and persistent inflation.
The beverage company attributes the anticipated profit decrease to several factors, including a significant increase in aluminum tariffs and softening consumer spending, particularly among price-sensitive individuals. Molson Coors relies heavily on aluminum cans, and a spike in the U.S. Midwest aluminum premium has already led to an 8.1% rise in its cost of goods sold.
New CEO Rahul Goyal is focusing on cost control and has made difficult decisions to steer the business toward future stability. Executives estimate that aluminum costs alone will negatively impact profit by approximately $125 million in 2026, with commodity inflation expected to remain a substantial drag.
Alcohol demand has softened globally as consumers increasingly opt for non-alcoholic beverages and energy drinks. This trend is further influenced by the growing popularity of GLP-1 weight-loss drugs and a pullback from beer and spirits among younger generations, including Gen Z.
