Earnings Preview: Molson Coors Brewing Co.

EMILY FREDRIX

MILWAUKEE (AP) — Molson Coors Brewing Co. is expected to report earnings for the third quarter on Wednesday before the market opens. The following is a summary of key developments and analyst opinion related to the period.

OVERVIEW: No matter how difficult the economy may be, people are still drinking beers like Coors Light and Blue Moon, both made by Denver-based Molson Coors.

But consumer habits have shifted in at least the past year due to the recession — leading to volume drops for key Molson Coors markets like Canada.

And now that the economic pressures seem to be easing those trends are improving, according to industry and analyst reports. But there are still other issues — such as competition in Canada, which can lead to price discounting — that the company is dealing with.

The U.S. business has not been as hurt as that in Canada. The company has the benefit in the U.S. of its MillerCoors joint venture with SABMiller's U.S. unit, which is expected to generate some $500 million in savings in three years. The two sides have joined up to better compete against industry leader Anheuser-Busch, which sold itself late last year to Belgian-based InBev.