Molson Coors Chief Communications & Corporate Affairs Officer Adam Collins joins Yahoo Finance Live to break down how Molson Coors and breweries are facing ramifications weeks after the Texas storm.
ADAM COLLINS: Of course, as we covered just a few weeks ago, that cold front here in Texas rattled everything in terms of businesses from basically every sector as the power grid came dangerously close to failure. And Molson Coors was also among those caught up in the storm with their brewery in Fort Worth having to close for about 11 days. Impacting everything in terms of brewing, but also logistics attached to that. And here to chat that with us is Adam Collins, Molson Coors' Chief Communications and Corporate Affairs Officer.
- And, Adam. I mean, when we look at it, you might not think that beer would have been impacted by all this too, because that process should just keep going. But there's a lot behind the scenes. So how big of an impact was it for Molson Coors?
ADAM COLLINS: It was, you know, it's a sizable impact. And when you think about it, as you mentioned, we all saw the headline a couple of weeks ago, people lost power, access to food, access to running water. So the utilities curtailed the power to businesses, including ours, and try to focus on those residential-- residential needs, obviously. Understandably.
For us, specifically, we were off for 11 days, as you mentioned. But the impacts spread beyond that. If you think about it, the entire trucking network, it's going to take time for that to catch back up. And so even as our brewery turns back on after 11 days, trucks aren't where they need to be in the system. We also have a number of suppliers who supply the Fort Worth brewery in the area, as well, they are also dealing with those ramifications. And really, any business that's got sizable operations in Texas is going to be dealing with this for some time.
- So, Adam, what kind of backlog are we talking about? When you say that it's going to take some time to pick things back up, especially given the delays.
ADAM COLLINS: Yeah, sure. It's a great question. When we think about this, obviously, an 11-day shutdown of a major brewery is going to have an impact on production plans. And it's going to ultimately have an impact on Q1 shipments. There's just no two ways about it. We are in the process of working with our suppliers in the trucking network to get those entities back up and running and understand the impact on their businesses.
From our standpoint, our production was back up and running within a few hours of when the gas was turned back on early last week, and it was really exciting to see. We're getting text messages and emails, pictures, and videos of cans of Vizzy running down the some of our beers in production. So there's a lot of excitement there. But we've got to get those finished beers out to distributors and out to retailers, obviously.
- I'm glad you mentioned the Vizzy element of all of this. Because in today's day and age, sure, it would be one thing for the storm to impact beer production, but let's be honest, if it impacts seltzer, you're going to have angry mobs everywhere. But what have you seen on the busy front, though? Because that is impacted here in Fort Worth. That's what you guys invested into, what, quintuple production? Talk to me about the growth that you continue to see on the seltzer side
ADAM COLLINS: Yeah. I mean, it's really exciting. Last year, in 2020, in spite of all the challenges the pandemic through at really the whole world, we doubled our share of the seltzer's segment in the United States. We've got a goal to get to 10 share of the seltzer's segment this year. Just last week, we launched Vizzy's second variety pack. We have Vizzy Lemonade coming up in a few weeks, Topo Chico hard seltzer, which I'm excited about. I know a lot of folks in Texas are really excited about it, as well. It's coming in late March. And we've got Proof Point, which is our first spirited seltzer. So we've got a lot of new packages, a lot of really exciting innovations behind our seltzer goal, and we're looking forward to a good 2021 [INAUDIBLE].
- OK, Adam Collins, Molson [INAUDIBLE] Chief Communications and Corporate Affairs Officer. It's good to talk to you today. Appreciate your time.