Economic Impact

Who Benefits From Our Revenues?

If you look at our financial results, its clear how much profit the company generated and the resulting earning per share of stock. This is the format that is required by the Generally Accepted Accounting Principles in the US (US GAAP).

Less clear from standard financial reporting are the many other economic impacts inherent in the distribution of our revenues. The chart below shows how 2008 revenues were allocated. These figures are fully consistent with our standard financial reporting, but provide additional perspectives on the many individuals and communities who benefit from our enterprise.

In 2008, Molson Coors received US$6.6 billion in revenue*, over 99% from beer sales. Governments, through taxes, took the biggest slice of the revenue, 30% or almost US$2 billion. Our employees received 12% or  US$800 million in compensation and benefits. Another 24% or US$1.6 billion went to agriculture, other brewing materials, cans, bottles and other packaging. Net income was just under 5% of revenues, with 3% invested back in the business 2% returned to shareholders in the form of dividends.

Of course, as our employees, vendors, governments and communities use these revenues, the overall economic impact of our business is multiplied several times over. This analysis also does not include the significant jobs and value created by wholesales and retailers who sell our products to consumers.

*2008 revenues represent the full year of revenues from Molson Coors operations around the world, with the exception of the US and Puerto Rico, where only January – June revenues are reflected.  In July 2008, Coors Brewing Company (US and Puerto Rico) merged with Miller Brewing Company into MillerCoors LLC.  For financial reporting under US accounting standards, MillerCoors LLC is accounted for with the equity accounting method.  Therefore, revenues and expenses are not reported on Molson Coors books.  Molson Coors does receive and report 42% of the net profits of MillerCoors.  In 2009 and beyond, no revenues from US and Puerto Rico operations will be reported by Molson Coors.