Molson Coors Brewing Co. (TAP) now produces and markets Molson Canadian 67 Sublime, a premium light beer with citrus flavor, containing not more than 67 calories in each 341ml bottle. It has 3% alcohol.

The beer is now on the shelves at select retailers and establishments across Western Canada and Ontario. It will be available in the national markets from June 2011.

This beer is another addition to an innovative low-calorie beer category. Management at Molson Coors claims that the new brand offers “health and wellness” along with innovative flavors to make it interesting.

The launch of Molson Canadian 67 Sublime is a part of revamping program taken up by Molson Coors to hold back the decrease in volume in the premium and value categories. For each of the five years ended December 31, 2008, Canada beer industry shipments’ annual average growth rate approximated 1%. While in 2009 and 2010, Canada beer industry shipments declined at a rate of less than 1%.

Sublime is one of the several new products created under the Molson label to cater to shifting consumer tastes in Canada, where drinkers are ordering more specialty beers or wine.

Molson Coors Canada is the second largest brewer by volume and North America’s oldest beer company. It approximately has a 40% market share in Canada. It brews, markets, sells and distributes a wide variety of beers nationally. Its portfolio has leading brands in all major product and price segments.

The key owned brands of Molson Coors Canada include Coors Light, Molson Canadian, Molson Dry, Molson Export, Rickard’s, Creemore Springs and Granville Island and key strategic distribution partnerships, including those with Heineken, Modelo and SABMiller. Coors Light currently has a 14% market share and is the top selling beer brand in Canada and Molson Canadian currently has an 8% market share and is the third largest selling beer in Canada.

Since 2001, the premium beer category in Canada has gradually lost volume to the above premium and value categories. For each of the five years ended December 31, 2008, Canada beer industry shipments annual average growth rate approximated 1%. While in 2009 and 2010, Canada beer industry shipments declined at a rate less than 1%.

Molson Coors faces stiff competition from Anheuser-Busch InBev (BUD) and maintains a Zacks #4 Rank, which translates into a short-term Sell rating.

 
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