Molson Coors Ireland racks up more losses

Molson Coors Ireland, the wholly-owned subsidiary of Molson Coors Brewery Company in the US - the world’s third-largest brewer - recorded pre-tax losses of €4.1 million in the year to 31st December 2016, 75% more than that of the previous year - €2.4 million, despite a massive increase in both staff and turnover to €20,848,462 from the previous year’s €2,686,639 figure.

Directors’ remuneration fell from €83,844 to €76,310 with concomitant payroll cost increases to €3.6 million from €312,000 the previous year for a staff of 69 compared to just six the previous year.

The Irish subsidiary includes as part of its portfolio the beers Estrella Damm, Carling, Blue Moon, Cobra, Molson Canadian, Staropramen and Franciscan Well which it bought in late 2012.

Molson Coors Ireland’s losses led to the company’s net liabilities totalling €10.74 million, up from the previous year’s €6.54 million. The company has stated that Molson Coors Brewing Company (UK) will continue to provide it with financial support.

“In recent years, beer volume sales in Ireland have been shifting from pubs and restaurants (on-premise) to retail stores (off-premise), for the industry in general,” states the company, adding, “Continuation of these trends could adversely impact the Company’s Profitablity.”

However the Irish arm expects to become profitable “within the next two financial years as a result of a continued increse in sales volume”.