Major beer and donut companies struggle as consumers cut back on spending
- Molson Coors Beverage Company expects its 2025 earnings to be in the low single digits, following a 9% decline in U.S. beer sales.
- Krispy Kreme reported a revenue loss of nearly $60 million or 20% compared to 2024, prompting an evaluation of its strategy at McDonald's.
- Both companies are adjusting to a volatile macroeconomic environment, reflecting broader consumer behavior changes.
In the United States, a significant decline in consumer demand has been observed, leading to big beer and donut companies adjusting their revenue expectations for the year 2025. On May 8, 2025, Molson Coors Beverage Company announced a downward revision in its revenue outlook, citing macroeconomic pressures and a reported 9% decline in beer sales domestically and 8% internationally. This decline was compounded by the loss of a crucial contract with Pabst, prompting Molson Coors to diversify its brand portfolio in an effort to stabilize sales. Alongside Molson Coors, Krispy Kreme also reported a substantial revenue drop of nearly $60 million, equivalent to 20%, when compared to its performance in 2024. The company indicated that it would be reassessing how it distributes its products at McDonald's locations, with corporate leaders attributing the downturn to economic uncertainty and geopolitical tensions affecting consumer behavior. Reports suggest that customer visits to McDonald's have declined more than anticipated in 2025, which directly impacts Krispy Kreme’s sales through the fast-food chain. As the second quarter approaches, Krispy Kreme has set its revenue expectations within a range of $370 million to $385 million. Both Molson Coors and Krispy Kreme are reflecting broader trends within the food and beverage industry, where consumer spending habits are shifting as people reevaluate discretionary expenses in light of economic challenges. In response to these trends, both companies are actively exploring means to combat their declining figures. The emphasis on diversifying product offerings may provide a buffer against the current economic climate, highlighting a strategic pivot aimed at recapturing lost revenue. These developments underscore the vulnerabilities faced by consumer goods companies amid shifting market dynamics and changing consumer preferences, pointing to a complex landscape for businesses reliant on traditional vices such as beer and donuts.