Can Beyond Beer Drive Molson Coors' Next Phase of Growth?

Molson Coors Beverage Company TAP is accelerating its transformation beyond traditional beer as management seeks new avenues for long-term growth. While beer remains the company's core business, faster-growing categories such as ready-to-drink (RTD) cocktails, hard seltzers and premium mixers are b…

Molson Coors Beverage Company TAP is accelerating its transformation beyond traditional beer as management seeks new avenues for long-term growth. While beer remains the company's core business, faster-growing categories such as ready-to-drink (RTD) cocktails, hard seltzers and premium mixers are becoming increasingly important to diversify revenues and reach new consumers. TAP's Horizon 2030 strategy places Beyond Beer at the center of portfolio expansion, reflecting management's view that future growth will come from participating in a broader range of beverage occasions rather than relying solely on the mature beer category.

The strategy is already gaining traction. Management described Beyond Beer as the fastest-growing part of the portfolio during the first quarter of 2026, supported by brands such as Fever-Tree, Topo Chico Hard and the recently acquired Monaco Cocktails. Fever-Tree contributed meaningfully to first-quarter net sales and recently launched its first national U.S. advertising campaign. Meanwhile, Topo Chico Hard returned to growth following last year's regional refocusing. Molson Coors also completed the acquisition of Atomic Brands, adding Monaco Cocktails to establish a meaningful presence in the RTD market. Management expects Monaco to contribute roughly 1% of global net sales on a trailing 12-month basis while generating incremental profitability in its first year, despite being included in the portfolio for only nine months during 2026. The acquisition also brought approximately 80 sales employees, strengthening commercial execution across the Beyond Beer business.

Importantly, Molson Coors views Beyond Beer as more than a collection of new brands. The company is building dedicated commercial capabilities, expanding retail coverage and using acquisitions to address portfolio gaps while leveraging its existing distribution network. Management believes Monaco strengthens its convenience-store presence, while Fever-Tree and Topo Chico Hard broaden exposure to premium and fast-growing beverage segments. As these brands scale alongside continued marketing investments and distribution gains, Beyond Beer could evolve into one of Molson Coors' most important long-term growth engines.

TAP’s Zacks Rank & Share Price Performance

Shares of this Zacks Rank #3 (Hold) company have lost 11.4% in the past six months, underperforming the Zacks Beverages - Soft Drinks industry’s growth of 18.2% and the broader Consumer Staples sector’s fall of 10.1%.

TAP Stock's Six-Month Performance

Is TAP Stock a Value Play?

Molson Coors shares are currently trading at a forward 12-month price-to-earnings (P/E) multiple of 8.43X, at a discount compared with the industry’s average of 15.94X. The stock is undervalued compared with its industry peers, offering compelling value to investors looking for exposure to the beverage segment.

TAP P/E Ratio (Forward 12 Months)

Stocks to Consider

ARKO Corp. ARKO operates a chain of convenience stores in the United States. ARKO currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for ARKO's current fiscal-year sales implies a decline of 2.8%, while the same for current fiscal-year earnings implies growth of 93.3% from the year-ago reported figures. ARKO delivered a trailing four-quarter earnings surprise of 43.2%, on average.

Fomento Economico Mexicano FMX is a leading multinational consumer company with operations spanning proximity retail, fuel, health, digital financial services, logistics and distribution, while also holding a controlling stake in Coca-Cola FEMSA, the world's largest Coca-Cola franchise bottler. The company presently flaunts a Zacks Rank #1.

FMX delivered a trailing four-quarter negative earnings surprise of 17%, on average. The Zacks Consensus Estimate for FMX’s current financial-year sales and EPS indicates growth of 17.5% and 115.3%, respectively, from the year-ago reported numbers.

The Vita Coco Company Inc. COCO is a leading beverage company that develops, markets and distributes coconut water and other plant-based hydration products under brands such as Vita Coco, Farmers Organic and PWR LIFT across retail, e-commerce and foodservice channels worldwide. It currently sports a Zacks Rank #1.

Vita Coco delivered a trailing four-quarter earnings surprise of 11.7%, on average. The Zacks Consensus Estimate for COCO’s current financial-year sales and EPS indicates growth of 21.4% and 47.9%, respectively, from the year-ago reported numbers.

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