Can Molson Coors' Overhaul Turn Around a Declining Beer Industry?

Molson Coors Brewing Company is currently undergoing a significant restructuring phase and facing market volatility, taking steps to reduce expenses and strengthen its primary U.S. beer operations in a tough economic climate. The company has revealed intentions to decrease its salaried workforce in the Americas by 9%, which equates to about 400 jobs, by 2025. This action is projected to result in severance costs ranging from $35 million to $50 million in the last quarter of 2025, as detailed in the company's

. This reorganization is part of a broader strategy to enhance profitability and deliver value to shareholders. CEO Gavin Hattersley has stated that the downturn in the beer sector is "cyclical, not structural," and highlighted that the company has managed to maintain a strong presence in flagship brands such as Coors Light and Miller Lite, according to .

This restructuring is consistent with the company’s wider initiatives to counteract economic challenges, including increased aluminum prices due to the Midwest Premium and elevated tariffs, both of which have squeezed profit margins. Despite these obstacles, Molson Coors has maintained its $1.3 billion free cash flow goal for the year, citing positive trends in working capital and tax advantages, as reported by Yahoo Finance. Nevertheless, the company has lowered its outlook for the full year, now anticipating net sales to fall by 3–4% and earnings per share (EPS) to decrease by 7–10% in 2025, according to Yahoo Finance. This comes after a mixed second quarter, where adjusted EPS climbed 6.8% year-over-year to $2.05—beating analyst forecasts by 12%—while net sales slipped 1.6% to $3.2 billion, as reported by

.

Market experts remain wary about the stock’s short-term outlook. Over the past year, shares trading under the ticker TAP have dropped 18.9%, lagging behind both the S&P 500 Index and the Consumer Staples Select Sector SPDR Fund, as noted by Barchart. The stock currently holds a "Hold" consensus, with an average price target of $53.14—suggesting a possible 14–16.9% increase—based on the opinions of 22 analysts, according to Yahoo Finance. While five analysts rate it as a "Strong Buy," others express reservations about the speed of cost-cutting measures and the broader industry’s challenges with evolving consumer tastes.

The company’s commitment to reinvestment and rewarding shareholders has been highlighted by CFO Tracey Joubert, who pointed out that strong cash flow enables both expansion efforts and dividend payments, as mentioned by Yahoo Finance. Molson Coors’ upcoming earnings report, expected in early February 2026, will be a key indicator of its ability to maintain profitability during ongoing restructuring and economic headwinds, according to Yahoo Finance.