Coors Brewing battles declining beer sales as it celebrates 150 years

State of play: The brewery in the foothills west of Denver — the second-biggest in the world and largest in the U.S., producing 10 million barrels a year — is facing an existential crisis as beer sales decline and a new generation of drinkers moves toward alternative and healthier beverages.

• In 2022, Molson Coors posted its steepest decline in U.S. volume in the modern era, down 5% or 2.2 million barrels, according to economists at the Boulder-based Brewers Association.
• The company's profits rose 3%, but market share slipped below 20% and remained well behind Anheuser-Busch InBev.

What they're saying: "As I look at the next 150 years, it's about getting back into a position where we are leading the industry," Peter Coors, the family's fifth generation to work at the brewery, told John in an interview at the brewery earlier this week.

• "I feel like we've been on our back foot for a little while."

The backstory: Coors' legacy is notable for surviving Prohibition — which Colorado started in 1916, four years before the nation — by making near-beer and malted milk, most of which went to candy manufacturers. Other major brewers in the state never re-emerged.

• In 1959, the company invented the aluminum beer can and became an environmental leader by promoting recycling.

The intrigue: The company's brand became iconic starting in the mid-20th century as one of the original rare beers because it only distributed west of the Mississippi. Burt Reynolds even bootlegged a trunkful in "Smokey and the Bandit" and former President Ford packed Air Force One with cases when he returned from the Western White House in Colorado.

• Coors became the epitome of the Western lifestyle, captured in marketing with cowboys and mountains alongside slogans like "Taste the High Country," a campaign that is being revived today.
• The brewery and its affiliated Blue Moon and A.C. Golden brands, which date back to the 1990s, served as an incubator that helped train craft brewers and create Colorado's dominance in independent beer.

What's next: Even though the brewery itself has "stood the test of time," as Peter Coors put it on a recent tour, he is leading a project to open a new plant in its shadow that will cost the company "hundreds of millions of dollars."

• Construction started in October 2020 and the plant is expected to be operational by summer 2024. New technologies are expected to cut production time from six weeks to 2.5 weeks and save 80 million gallons of water a year.
• The new brewery — with a million barrels of additional capacity — also will make it easier to brew more Miller brands in Golden; right now the system is tuned to Coors tastes.

Yes, but: 75 employees in the brewing department will lose their jobs because of the new efficiencies, bringing the total workforce at the Golden plant to 825.

• The company said it will offer displaced employees jobs elsewhere at the Golden plant.

Of note: Coors is making a concerted effort to grow its non-beer beverages with the recent debut of Coors Whiskey.

• It's part of a large push by its parent company into seltzers, energy drinks and more.

The bottom line: "I think to survive in the American beer business you have to be more of an innovator," Coors says. "The reality is beer volume is going down … we've got to find other places."

Mark your calendar: Coors is throwing a 150th-anniversary celebration 1-6pm Saturday in downtown Golden featuring free beer.

Go deeper: 8 fun facts about Coors Brewing you probably didn't know