Coors brands hurt, CSFB analysts say - Credit Suisse First Boston - Brief Article

Modern Brewery Age, Jan 26, 2004

In an article on Forbes.com, analysts at Credit Suisse First Boston expressed concern that the Coors Light brand lost share in 2003 to Bud Light, while Miller Lite started making a significant comeback late in the year.

The analysts cited Coors' "financial leverage and scale disadvantages in marketing," in preventing a quick turnaround for the company's brands.

The CSFB analysts pointed out that Coors Light sales represent 75% of the company's North American volumes and said that Coors Brewing Co. must work harder to defend its position in the light beer segment.

"In our view, inconsistent and volatile earnings are likely to continue to plague valuation until the company can post steady volume growth in the U.S. business," the analysts said.