It’s very, very difficult to make money in the stocks of companies that aren’t growing. Low-growth stocks can work under the right circumstances, but the shares of companies with no growth, or actual erosion, rarely work out long term.
That’s my biggest hang-up with Molson Coors (TAP). I can see value in this business, but I believe management is going to continue to struggle to offset the decade-plus volume erosion in its core market categories, and high debt levels limit how aggressively Molson Coors can pursue other options to speed the pace of a portfolio refresh. If management can stem the losses in its core mainstream portfolio and drive even faster growth from new product introductions in its high-end (or “above premium”) category, there could be real upside here, but I think that will be a tough outcome to achieve.
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COVID-19 Adds To Molson Coors' Long-Term Struggles To Reposition The Business For Growth
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