Molson Coors Beverage Company TAP is on track with its revitalization plan focused on achieving sustainable top-line growth by streamlining the organization and reinvesting resources into its brands and capabilities. In the latest development, the company announced the completion of the sale of its brewery property in Irwindale, CA, to Irwindale Brew Yard, a subsidiary of Pabst Brewing Company, LLC. This will help the company streamline its operations to boost efficiency across its network and reinforce liquidity.

We note that the producer of Coors Light and Miller Lite informed in January that it will stop production at its 40-year-old facility by September. The company had transitioned the production from Irwindale to the breweries in Golden, Colo and Fort Worth, TX. According to the earlier-negotiated settlement agreement, Pabst Brewing had the option of buying the brewery for $150 million.

Meanwhile, the company intends to invest in iconic brands and growth opportunities in the above-premium beer space; expand in adjacencies beyond beer without hampering support for its existing large brands; and creating digital competencies for commercial functions, supply-chain-related system capabilities and employees.

The company is building on the strength of its iconic core brands. Year to date, Coors Light and Miller Lite grew 6% and 9.5%, respectively, in the U.S. off-premise channel. Per Nielsen, it has expanded the combined U.S. segment share for Coors Light and Miller Lite for 24 straight quarters in the third quarter of 2020 (or six consecutive years). Moreover, it aims to stabilize share gains for its biggest brands in the total beer category. Furthermore, the company has been aggressively growing its above-premium portfolio and expanding beyond beer categories.

Markedly, shares of this Zacks Rank #2 (Buy) company have gained 8% in the past month against the industry’s 0.9% dip. The stock recently got a boost from top- and bottom-line beat in third-quarter 2020. This marked the company’s fifth straight quarter of bottom-line beat, while the top line surpassed the Zacks Consensus Estimate for the second consecutive quarter. Moreover, adjusted earnings improved year over year, benefiting from favorable net pricing in the United States and Canada, cost savings, and lower marketing, general and administrative expenses.

More Solid Beverage Stocks

Boston Beer SAM delivered an earnings surprise of 23.1% in the last four quarters, on average. It sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Brown-Forman BF.B currently has a Zacks Rank #2. It delivered an earnings beat of 8.2% in the last four quarters, on average.

Carlsberg CABGY, also a Zacks Rank #2 stock, has gained 13.9% in the past six months.

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