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Coors shipments lower in second quarter, 100 positions cut.

Coors shipments lower in second quarter, 100 positions cut

Coors Brewing Co. has reported continued beer sales declines as beer shipments for the 12-week second quarter ended June 11 were 4,252,000 barrels, a 3.4 percent decrease from 4,400,000 barrels shipped in the second quarter of 1988. For the first half of 1989, the Golden, CO brewer had shipments of 7,315,000 barrels, a 4.3-percent decrease from 7,640,000 barrels shipped in the same two quarters last year.

The softening sales for the nation's fourth-largest brewing company has forced the firm to "implement cost reduction measures including the elimination of approximately 100 positions," Coors reported. According to a company spokesman, the cutbacks are "non-production" related and displaced employees will be given the opportunity, when possible, to transfer to a production position.

"The beer industry is facing long-term stiff price competition, rising operating costs and virtually no volume growth," William K. Coors, Adolph Coors Co. chairman, stated, in announcing the cutbacks.

Net income for the Adolph Coors Co. for the 12-week period declined to $16.8 million, or 46 cents per share, compared with $19.3 million, or 53 cents per share, in the second quarter last year. For the first half, net income, Coors reported, declined to $12.0 million, or 33 cents per share, versus $23 million, or 63 cents per share, for the first half of 1988.

Net sales at Adolph Coors in the second quarter increased 11.1 percent to $425.5 million, compared to $383.1 million for the same period a year ago. For the first 24 weeks of the year, net sales increased 11.8 percent to $749.6 million, versus $670.3 million for the same period last year.

Consolidated second quarter earnings were impacted by two major factors, the brewer stated, higher manufacturing costs for most businesses and the lower sales volume for the beer business.

All major non-beer subsidiaries of Adolph Coors Co., however, achieved improved sales during the 1989 second quarter, the company reported, particularly its packaging operation and Golden Aluminum Co.

To improve sales, the firm said, new advertising campaigns have been developed and regional sales directors and marketing managers have been instituted "to focus on unique consumer needs throughout the country."

Said Bill Coors, "We expect the highly competitive, no growth environment of the beer industry to continue for some time, but we believe our continuing heavy marketing investment will provide opportunity for long-term growth."
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Title Annotation:Adolph Coors Co. sales
Publication:Modern Brewery Age
Date:Jul 24, 1989
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