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Key Consumer Trends and Impact on Molson Coors (TAP)
Alcohol consumption in America has decreased from 60% in 2023 to 54% in 2024, the lowest level since tracking began in 1939. This trend has adversely affected beer volumes in the U.S., leading to challenges for legacy brewers like Molson Coors (TAP).
TAP’s shares have underperformed this year, with analysts reducing earnings estimates by 14.6% for the current quarter and by 7.2% for FY25 over the last 60 days. Sales are projected to decline by 3% this year, with modest growth of only 0.7% anticipated in 2026.
Despite its low valuation of 9.1x forward earnings, TAP’s sluggish growth, with an expected 5% annual increase over the next three to five years, signals that the stock may not be an attractive investment. Analysts recommend avoiding Molson Coors until consumer preferences change or the company adapts its portfolio effectively.
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