Molson Coors Beverage Co. has selected Rahul Goyal, its chief strategy officer, to replace retiring CEO and President Gavin Hattersley as it looks to tap new revenue sources in a world of declining beer consumption.
The company, which relocated its corporate headquarters from Denver to Chicago in 2019, continues to employ close to 1,500 workers at its Golden factory, which remains the nation’s largest single-site brewery. Its ties to the state started in 1872, when German immigrant Adolph Coors moved to Colorado from Illinois.
“Rahul has strong institutional knowledge given his time with the company and more importantly, he is eager to bring new thinking with a focus on future growth. The entire Board is confident that Rahul’s leadership will drive long-term results for Molson Coors,” Chairman David Coors said in a statement.
Goyal, who started at Coors Brewing 24 years ago and lists the Denver Broncos as his favorite football team, has worked as chief information officer for Molson Coors UK and chief financial officer for Molson Coors India. Recently, he has headed up efforts to boost the sales of non-alcoholic and non-beer beverages at the company.
He spearheaded the company’s “Beyond Beer” initiatives that included partnerships with Fever Tree, ZOA Energy, Naked Life Non-Alcoholic Canned Cocktails. He also led an initiative with The Coca-Cola Company to produce and distribute a seltzer line of Topo Chico.
Goyal will take over as CEO effective Oct. 1. Hattersley, who rose through the ranks of SAB and Miller Brewing, announced his plans to retire in April and will stay on as an advisor through the end of the year.
“I’m ready to take on both the opportunities and the challenges ahead of us, knowing that we have the brands, the people, and the passion to deliver on our ambitions,” Goyal said in the release. “I recognize that we have a lot of work to do, and in the coming months, I will share more on my vision for how we will drive growth and carry the legacy of this great company forward to reach new heights.”
Research analysts at Needham & Co., an asset manager and boutique investment bank, called Goyal a “safe hiring decision” who should provide a younger perspective and approach.
But they don’t expect the appointment to drive the company’s stock price higher until Goyal provides investors with more clarity on his “beyond beer” approach and a sense of how aggressively he would shift the company away from premium light beers.
A Gallup poll conducted in July found that 54% of Americans reported drinking alcohol, the lowest share since polling on that topic started in 1939. A majority of Americans now consider even moderate alcohol consumption bad for one’s health. Younger adults are more likely to state that they don’t drink.
Shares of Molson Coors, which trades under the ticker TAP, were around $47 when the company left Denver for Chicago. They closed at $45.09 on Monday. Although the company hasn’t seen its stock price appreciate, it has paid out a consistent dividend and offered a better return than many of its peers in a difficult environment.
