Molson Coors

Brewing Company today reported higher worldwide beer volume

and underlying income for the full year ending December 28, 2008. For the

fiscal fourth quarter of 2008, pro forma worldwide beer volume and underlying

income declined due to unfavorable foreign currency and slowing industry

trends.
“We looked at this past year as an opportunity to continue to strengthen

our financial base and position ourselves for long-term growth,” said Peter

Swinburn, Molson Coors president and chief executive officer. “In 2008, we

invested substantially in our strategic brands, increased global beer volume,

achieved higher pricing in all of our markets, and exceeded our cost-reduction

targets, all while successfully executing major strategic initiatives like the

launch of MillerCoors.”
“Our lower fourth quarter financial results reflect the combined

challenges of a much stronger U.S. dollar versus a year ago, significant

commodity inflation, and lower sales volume in our major markets. Foreign

currency movements alone accounted for more than 55% of the year-over-year

decline in fourth quarter profit, and input cost inflation across all of our

businesses added another $41 million of headwinds to the quarter.”
“In this economic environment, we remain committed to building great beer

brands while diligently reducing our costs,” Swinburn added. “We are

benefiting from strategic initiatives in each of our businesses to improve

long-term performance. While our Canada team is balancing its brand and

pricing priorities, our U.K. team is ramping up its contract brewing

arrangement and the Magners draught cider business. At the same time,

MillerCoors is delivering synergies ahead of schedule in the U.S. and taking

important steps to strengthen its top-line.”
“As we enter 2009, we remain focused on the fundamentals that drive our

business regardless of the economic environment: building great beer brands,

increasing revenue per barrel, delivering cost savings, generating free cash,

and growing long-term returns to shareholders.”

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