It may seem counterintuitive but beer makers are more than eager to play a role in "Dry January."
What To Know
Beer sales typically drop in January in reaction to the month long sobriety pledge which traces its roots to the United Kingdom in 2013, according to CNBC. Data from Nielsen shows 20% of Americans took part in a pledge not to drink alcohol in the first month of 2019. Coupled with a growing trend away from beer sales amid health concerns, one would assume beer companies are panicking.
But that isn't the case as beer companies are embracing the shift away from beer -- be it for one month or longer. Molson Coors Beverage Co (NYSE: TAP) is promoting its low-alcohol beer Miller64 by targeting consumers demanding lower calories in their drinks.
The company even changed its name from Molson Coors Brewing Co. to Molson Coors Beverage to better align with its portfolio of products outside of its core Molson and Coors brands.
Why It's Important
Molson Coors has a good reason to change its name. While U.S. beer volume fell by 1.6% in 2018, CNBC reported low-alcohol and no-alcohol beverages is the fifth-fasting growing type of beer in the U.S.
Molson will have its fair share of competition in the alcohol-free category, according to CNBC. The "King of Beer" Anheuser Busch Inbev NV (NYSE: BUD) launched Budweiser 0.0 in India last year and tested the beverage in several U.S. markets. It's not yet clear if the company plans on a full-scale launch but it does have other brands in its portfolio with zero alcohol, including O'Doul's.