Consumers seem to be cutting back on certain vices, with large beer and donut companies lowering their revenue outlooks for the rest of the year.
Blaming macroeconomic pressure and weaker consumer demand, the Molson Coors Beverage Company said it expects its 2025 earnings to be in the low single digits, rather than the high single digits, as beer sales are down by 9% in the United States and 8% internationally.
Molson Coors’ stock price has fallen by 2.5% over the past year.
In addition, Krispy Kreme on Thursday, May 8 reported a revenue decline in the U.S. of nearly $60 million, or 20%, compared to 2024.
Why are beer sales down?
In a statement on the company’s website, Molson Coors President and CEO Gavin Hattersley cited economic headwinds.
“The global macroeconomic environment is volatile,” Hattersley said. “Uncertainty around the effects of geopolitical events and global trade policy, including the impacts on economic growth, consumer confidence and expectations around inflation and currencies, has pressured the beer industry and consumption trends. “
What is Molson Coors doing to combat the drop in beer sales?
Molson Coors, which makes Coors Light and Miller Lite, noted the loss of its contract with Pabst was another reason revenue went down. More drinkers are also turning now to spirits, as well as canned drinks or non-alcoholic beverages.
As a result, Molson Coors is adding to its mix of brands.
“We made a significant step forward in our premiumization initiatives and added meaningful scale to our non-alcoholic operations with our exclusive U.S. partnership with Fever-Tree, the world’s leader of premium carbonated mixers,” Hattersley said.
Fever-Tree joins other brands such as Peroni and Madri under the Molson Coors name.
What about donuts?
Krispy Kreme primarily attributed the sale of a big stake in Insomnia Cookies for its revenue reduction.
The donut-maker also said it is “reassessing” its deployment schedule of Krispy Kreme availability at McDonald’s restaurants. Krispy Kreme and its famous glazed donuts are currently available at more than 2,400 locations.
The donut company said it will not try to launch into any additional McDonald’s in the months ahead in 2025.
Just last week, the golden arches revealed that for the beginning of 2025, it had its worst drop in sales since 2020. The McDonald’s CEO cited economic uncertainty, as well as geopolitical tensions for the decline in business. Customer visits to McDonald’s in the United States declined in 2025 more than expected, CNN reported.
For the second quarter, Krispy Kreme expects overall revenue to range from $370 million to $385 million. The Wall Street Journal reports analysts previously predicted the figure to be closer to $394 million.