Swinburn: craft beer overvalued
Molson Coors CEO says segment too hot
Molson Coors CEO Peter Swinburn has described American craft brewers as “massively overvalued” and as such a roadblock to potential acquisitions by the multinational brewer.
In an interview with the Bloomberg news service at the end of June, Swinburn acknowledged that demand for craft beer is in growth but that their brewers are typically too expensive to justify an acquisition.
“I’m sure the craft owners would say they’re not overvalued,” Swinburn said in an interview at Bloomberg’s New York headquarter. “I’m just saying we have to generate value from any purchase we make, and we find it difficult to get the returns we want.”
Molson Coors has craft-style products as with Blue Moon, sold in the US by its MillerCoors joint venture with SABMiller. MillerCoors also has a division, Tenth & Blake Beer Co that develops and acquires craft beers.
Blue Moon is also sold in Australia and Japan – Swinburn noted that Molson Coors plans to be part of the craft industry in those markets.
Swinburn added that the situation is slightly different in Canada than the United States. Craft brewers there have tax advantages that make them difficult to acquire.