Molson operates in a structurally challenged core category: mainstream beer volumes have been declining in the U.S. and Canada. The company has recently lost some volume share while facing intense competition from craft, spirits, and non‑alcohol alternatives.
In fact, it may take several years of brand and portfolio repositioning to return to consistent growth, during which time investors face execution risk and potential volatility.Meanwhile, the stock trades at just 9.2 times the company’s forward earnings forecast.
MOLSON COORS CANADA INC. (Toronto symbols TPX.A and TPX.B; www.molsoncoors.com) is the world’s fourth-largest beer brewer. Its main brands include Molson Canadian (Canada), Coors Light (the U.S.) and Carling (the U.K.).
To compensate for declining beer consumption, particularly among younger consumers, the company continues to add other beverages to its portfolio.
For example, Molson has now agreed to pay an undisclosed amount for Atomic Brands, which makes ready-to-drink cocktails under the Monaco Cocktails brand.
Right now, 70,000 retail locations in the U.S. sell Monaco Cocktails. Molson’s large distribution networks should expand the availability of these products.
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Payout remains strong despite sluggish revenue and earnings
In the quarter ended March 31, 2026, Molson’s sales rose 2.0%, to $2.35 billion from $2.30 billion a year earlier (all amounts except share prices in U.S. dollars). That beat the $2.33 billion consensus forecast. Excluding currency exchange rates, sales gained just 0.1%, as a 3.0% increase in selling prices offset a 2.9% drop in volumes.
Molson continues to cut jobs and other costs in response to new tariffs on steel and aluminum.
Thanks to those savings, overall earnings before unusual items rose 15.5% in the quarter, to $117.5 million from $191.7 million. Due to fewer shares outstanding, per-share earnings gained 24.0%, to $0.62 from $0.50. That topped the $0.36 consensus estimate.
Molson last raised your quarterly dividend by 2.1% with the March 2026 payment. Investors now receive $0.48 U.S. a share instead of $0.47 U.S. The new annual rate of $1.92 U.S. yields 4.4% for the class B shares.
The stock is down 22% in the past year as U.S. tariffs on steel and aluminum continue to keep Molson’s packaging costs high.
For all of 2026, the company expects flat sales compared to 2025. However, earnings will probably fall between 11% and 15%. Based on the midpoint of that range, Molson will probably earn $4.72 U.S. a share this year, and the class B shares trade at just 9.2 times that estimate.
Recommendation in The Successful Investor: Molson Coors Canada Inc. is a hold.
