Introduction
Beverages companies’ annual reports have been of concern to investors because of their reliable and favorable returns. Craft Brew Alliance and Molson Coors Beverage Companies are the leading beverage companies in America, and their annual reports are vital when analyzing growth and general performance in the global competitive market.
Craft Brew Alliance, Inc. consolidated financial statements include the accounts of all subsidiaries. However, intercompany dealings and balances are not included in the consolidation. The Molson Coors Beverage Company includes all the intercompany transactions in the consolidated statement. Craft Brew Alliance Inc. provides data on each product performance in terms of sales. At the same time, Molson Coors Beverage Company generalizes its sales for all products produced in both the parent and subsidiaries. Craft Brew Alliance company focuses on analyzing a single product to determine its performance in the market. Besides, it produces a particular variety of beers using traditional methods of brewing and complementing it with other inventions and technological innovations. However, Molson Coors Beverage Company that focuses on general sales in the different markets and uses the modern techniques of production only.
The data of both companies Craft Brew Alliances and Molson Coors Beverage are well presented in accordance to the international standards, which enables the shareholders to conclude how the company is performing. The two companies’ financial statements, such as Consolidated Statements of Cash Flows, Consolidated Balance Sheets, Consolidated Statements of Operations, and Consolidated Statements of Comprehensive Income (Loss), are in detail. The information available in these statements help shareholders know whether the company is performing well, especially analyzing the assets, liabilities, sales, and profits of the companies. The dividends received by the shareholders at the end of each financial year will provide a clear picture of the performance of the company. The Molson Coors Beverage dividends paid to shareholders from 2017 to 2019 has been increasing. For example, in 2017, a total of $ 353.4 million was paid as dividends, and in 2019, $ 424.4 million was distributed. It is a clear indication that the company’s financial performance of the Molson Coors Beverage is improving tremendously. The final financial performance of Craft Alliance has not been consistent; hence, shareholders can still make a decision. For example, the shares used in basic per share calculation in 2017 were $ 19370 million, and in 2019, it declined to $ 19310 million.
The goals of both Craft Brew Alliance and Molson Coors Beverage Companies is to increase sales and expand their markets. Craft Brew Alliance’s challenge has been to increase its sales that has been reducing significantly and manage the increasing liabilities. For example, in 2019, the total liabilities increased to $ 124080 million compared to $ 99612 million in 2018, as sales declined to $ 204634 million in 2019 from $ 217269 million in 2018. It has been a significant challenge, and they are planning to expand their markets and reduce the administrative cost that has been increasing tremendously. Moreover, Craft Brew Alliance plans to enhance partnerships to drive its customer and market growth. Besides, it focuses on the robust management of revenues and making the supply chain more efficient and effective. Molson Coors Beverage Company’s challenge has been the declining sales; for instance, in 2019, sales were $13009.1 million compared to $ 13338 million in 2018. The top management plan for the company is to increase advertisement, promotion, and focus on the innovation of its products to meet all the financial obligations. Also, the top managers are planning to improve their distribution channels to cut costs and improve the quality of their products based on customer feedback. Furthermore, Molson Coors Beverage Company started a revitalization plan where investment is made across the portfolio to succeed in the long run, especially in the most notable brands.
The format and organization of the Craft Brew Alliance are detailed because it provides all the required information. The explanation of all statements enhances information being presented, making it easy to understand by the current and potential investors. Nonetheless, the Molson Coors Beverage format and organization upholds the Financial Accounting Standards Board (FASB) and Accounting Standards Update (ASU) that meets international standards. Therefore, because both Craft Brew Alliance and Molson Coors Beverage Companies meet all the required standards of reporting and organization, it makes their information reliable for decision-making. The informative and dependable report will help the shareholders and investors to get the information required for analysis.
In conclusion, the annual reports of both Molson Coors Beverage and Craft Brew Alliance meet the internationally accepted guidelines and procedures. Furthermore, the information provided helps the investors make informed decisions based on the dividends distributed and the profitability of the company.