MillerCoors Reports Big Drop in Net Income

The agreement by MillerCoors to halt production of its Sparks caffeinated-alcoholic drink last December significantly contributed to a 40-percent drop in the company’s fourth-quarter net income, CNN reported Feb. 10.

The company reported net income of $54.1 million, down from $90.7 million a year earlier. However, despite the $65-million write-down on Sparks — which had been the dominant caffeinated alcoholic beverage on the market — the company reported a 16.5-percent rise in earnings thanks to price increases that made up for lower sales volume.

MillerCoors agreed to remove caffeine, taurine, guarana and ginseng from Sparks products under a settlement with more than a dozen state attorneys general. The company continues to market the beverage, however, and expressed confidence that sales would continue to rise.

The firm’s fourth-quarter net sales rose 3.1 percent, to $1.74 billion.

Leave a Reply

Please read our comment policy and guidelines before you submit a comment. Your email address will not be published. Thank you for visiting Join Together.

Required fields are marked *


*

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>

MillerCoors Reports Big Drop in Net Income

The agreement by MillerCoors to halt production of its Sparks caffeinated-alcoholic drink last December significantly contributed to a 40-percent drop in the company's fourth-quarter net income, CNN reported Feb. 10.


The company reported net income of $54.1 million, down from $90.7 million a year earlier. However, despite the $65-million write-down on Sparks — which had been the dominant caffeinated alcoholic beverage on the market — the company reported a 16.5-percent rise in earnings thanks to price increases that made up for lower sales volume.


MillerCoors agreed to remove caffeine, taurine, guarana and ginseng from Sparks products under a settlement with more than a dozen state attorneys general. The company continues to market the beverage, however, and expressed confidence that sales would continue to rise.


The firm's fourth-quarter net sales rose 3.1 percent, to $1.74 billion.

Leave a Reply

Please read our comment policy and guidelines before you submit a comment. Your email address will not be published. Thank you for visiting Join Together.

Required fields are marked *


*

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>