Beer Giant Molson Coors Warns of Major Profit Drop Due to Rising Aluminum Costs

Molson Coors announced Wednesday it expects profits to plummet up to 15% in 2026 as aluminum tariffs drive up packaging costs. The beer company, which makes Miller Lite and Coors, is also struggling with declining consumer demand as people shift to healthier drink options.

The beer industry took a hit Wednesday when Molson Coors announced it anticipates a significant decline in profits for 2026, citing increased aluminum tariffs and reduced consumer spending among budget-conscious shoppers.

The brewing company’s stock price dropped approximately 6% in after-hours trading following the announcement, which also revealed the company fell short of fourth-quarter revenue projections.

Molson Coors, the company responsible for producing Miller Lite and its signature Coors brands, projects adjusted earnings per share will decline between 11% and 15% in 2026. This stands in stark contrast to analyst predictions of a 1.9% increase to $5.48 per share, based on LSEG data.

The grim outlook emerges as newly installed CEO Rahul Goyal works to revitalize the company through cost-cutting measures following a challenging 2025 characterized by declining beer sales, reduced production volumes, and ongoing inflationary pressures.

“We made the necessary difficult decisions in our business to course correct and set ourselves up for the future,” Goyal stated.

The alcoholic beverage industry faces headwinds as health-focused consumers increasingly choose non-alcoholic alternatives and energy drinks over traditional beer. This shift has been accelerated by the growing popularity of GLP-1 weight-loss medications. Additionally, younger consumers, especially Generation Z, are reducing their consumption of beer and spirits.

Rising aluminum prices in the U.S. Midwest caused Molson Coors’ cost of goods sold per hectoliter to surge 8.1%, significantly impacting the company that depends extensively on aluminum cans for product packaging.

Chief Financial Officer Tracey Joubert cautioned that commodity price increases will continue to severely impact the company’s bottom line throughout 2026, despite expectations for revenue improvements. During Wednesday’s industry conference, company leadership indicated aluminum cost increases alone are anticipated to reduce profits by approximately $125 million.

The company forecasts net sales for 2026 to range from a 1% decrease to a 1% increase compared to the previous year, while analysts had predicted a 0.1% decline.

For the quarter ending December 31, Molson Coors reported net sales of $2.66 billion, falling below analyst expectations of $2.71 billion. However, the company exceeded earnings projections with underlying earnings of $1.21 per share, surpassing the estimated $1.16 per share.