Coors chief hunts value over volume in the supermarkets

By Michelle Perrett

- Last updated on GMT

Related tags Molson coors Supermarket Mark hunter

Hunter: value ahead of volume strategy
Hunter: value ahead of volume strategy
Molson Coors boss Mark Hunter has vowed Molson Coors will not participate in low margin promotional activity.

Molson Coors chief executive Mark Hunter has vowed Molson Coors will not participate in low margin promotional activity within supermarkets, off-trade and on-trade customers.

Speaking at the briefing today Hunter said the company has given up market share by concentrating over the last two years on a "value ahead of volume" strategy.

The company gave up about 1.4 share points last year and its market share is down just over 0.5% this year. But according to Hunter this has been 'transforming the bottom line' for the UK's largest brewer.

Hunter said: "We have given up market share in the UK by not participating in low margin promotional activity. There is one of our competitor brands selling for £10 for a 24 pack in a major retailer.

"If you strip out the VAT and the duty and issue an average cost of production assuming the retailer takes no margin its loses about £2.50 a case. That is just bonkers. Why would we participate in anything like that."

Last year the brewer was delisted by Tesco for six weeks after it could not come to an agreement over pricing. However, according to Hunter shopper pressure meant its products were relisted with the UK's largest supermarket.

He said: "We are trying to build brands in the market place so you have got to find a sweet spot where there is value to be created and shared.

"As we construct our trading deals we will try to ensure that type of (promotional) activity is less likely to happen.

"We are making tough choices at the moment where are brands are. We can attempt to influence how are brands are promoted and featured."

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