Consumers seem to be cutting back on certain vices, with large beer and doughnut 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, on Thursday, May 8, Krispy Kreme 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 that the loss of its contract with Pabst was another reason revenue went down. More drinkers are also turning now to spirits, 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 doughnuts?
Krispy Kreme primarily attributed the sale of a big stake in Insomnia Cookies to its revenue reduction.
The doughnut maker also said it is “reassessing” its deployment schedule for Krispy Kreme availability at McDonald’s restaurants. Krispy Kreme and its famous glazed doughnuts are currently available at more than 2,400 locations.
The doughnut company said it will not try to launch into any additional McDonald’s locations in the months ahead in 2025.
Just last week, McDonald’s revealed that its sales dropped to their lowest level since 2020 at the beginning of 2025. The company’s CEO cited economic uncertainty and geopolitical tensions as reasons for the decline in business. CNN reported that customer visits to McDonald’s in the United States declined more than expected in 2025.
For the second quarter, Krispy Kreme expects overall revenue to range from $370 million to $385 million. The Wall Street Journal reports that analysts previously predicted the figure to be closer to $394 million.
