No-Moat Molson Coors Faces an Uphill Battle to Expand in Premium Aisle

Molson Coors owns well-known brands, such as Miller, Coors, and Blue Moon in North America and Carling in the U.K. However, heavy exposure to secularly challenged midrange and economy beer segments has resulted in falling volume and less relevance. This is preventing the firm from maintaining brand-driven intangible assets that would underpin a durable competitive edge. Furthermore, the firm has had limited success thus far in parlaying its legacy brands into higher-end beer, which is more conducive to brand prowess. As such, we don’t believe the firm has carved out an economic moat.