Molson CEO says no sign of U.S. slowdown

By Martinne Geller

NEW YORK (Reuters) - Molson Coors Brewing Co (TAP.N) has seen no signs that sales of more expensive imports are softening or that consumers are trading down from costlier brews to cheaper beer, it chief executive told Reuters on Tuesday.

Molson Chief Executive Leo Kiely noted that the beer business usually holds up well during economic slowdowns.

"Clearly, we're in an economic cycle in North America but if you take a look at the last three or four downturns in the general economy, beer fares really well," Kiely said.

To see hints of a slowdown, Kiely said he would look for softening sales of the more expensive import or craft brews, such as Molson Canadian or Blue Moon, or signs that U.S. consumers are "trading down" from a Coors Light to a less expensive Keystone.

That is not occurring, Kiely said.

"So far, so good. And I'd expect beer will weather this pretty darn well," Kiely said.

He said there had been a slight softening in beer sales at bars and restaurants in the Northeast United States since the beginning of this year, but blamed it on regional weather as much as anything.

"My guess is if we have a good weather summer, that will pop right back," Kiely said.

Unlike Britain, where sales have suffered from an aging population and public smoking bans that has kept drinkers home, the United States still has "a strong cadre of entry-level beer drinkers coming into the market," Kiely said.

In the fourth quarter, Molson said sales to retailers in Europe fell 6 percent, hurt by weakness in Britain.

But the world's seventh largest brewer by volume, formed by the 2005 merger of Canada's Molson Inc with U.S. rival Adolph Coors Co, was able to offset that decline in the latest quarter with higher sales in the United States and Canada and greater-than-expected cost cuts.

(Reporting by Martinne Geller, editing by Leslie Gevirtz)