Molson Coors named long-time chief strategy officer Rahul Goyal as the company’s new president and CEO, succeeding Gavin Hattersley who announced in April plans to retire at the end of the year.
Goyal will assume the company’s top role, effective October 1. He will also serve on the company’s board of directors, which unanimously picked him for the role.
Hattersley will transition into an advisory role through his December 31 retirement date.
In an announcement, Goyal said he is “honored” to assume the role of CEO and “lead this company towards its next chapter of growth.
“I’m ready to take on both the opportunities and the challenges ahead of us knowing that we have the brands, the people and the passion to deliver on our ambitions,” he continued. “I recognize that we have a lot of work to do, and in the coming months I will share more on my vision for how we will drive growth and carry the legacy of this great company forward to reach new heights.”
Hattersley offered his endorsement of Goyal, calling him “the right choice to lead the company into the future.”
“He brings the same dedication that built our brands over centuries and has proven that he can deliver results, applying purpose and clarity to everything he does,” he added. “I look forward to supporting Rahul as he steps into the role bringing a fresh perspective in an increasingly complex environment. I have no doubt that he will inspire this team and lead Molson Coors to its full potential.”
Board chair David Coors cited “an extensive and thorough CEO succession process that included evaluating internal and external candidates” leading to Goyal being the person to succeed Hattersley.
“Rahul has strong institutional knowledge given his time with the company and more importantly, he is eager to bring new thinking with a focus on future growth,” Coors said. “The entire Board is confident that Rahul’s leadership will drive long-term results for Molson Coors.”
Board vice-chair Geoff Molson added: “Rahul has delivered meaningful growth in new spaces for the company thanks to his ability to build partnerships that align with the company’s strategic priorities. On top of that, he leads with authenticity and integrity and has built deep trust both inside and outside of Molson Coors, while igniting passion around our transformation journey.”
Goyal will take the reins of the second-largest U.S. brewing company by volume in 2024, according to the Brewers Association. Molson Coors ranks third in dollar sales and second in volume in Circana-tracked off-premise retailers year-to-date (YTD) through September 7.
Dollar sales of Molson Coors’ portfolio have declined 5.6%, to $5.45 billion, and volume, measured in case sales, has declined 6.9% YTD. The company’s share of beer category dollars has declined 0.51%, to 17.57%.
No. 1 Anheuser-Busch InBev (+0.15 sharepoints) and No. 2 Constellation Brands (+0.37 sharepoints) have gained more share than Molson Coors has lost. Both have recorded YTD declines (A-B dollars -2.3%, volume -3.4%; Constellation dollars -1%, volume -3%), but neither has declined at rates as high as Molson Coors.
Molson Coors has expanded its presence in emerging non-alcoholic categories over the past two years, acquiring majority control of energy drink ZOA and striking a strategic partnership with mixer brand Fever Tree.
Goyal will earn an annual base salary of $1.1 million and be eligible to participate in the Molson Coors Incentive Plan with a target of 150% of his base pay, prorated for 2025 based on targets for each of his roles. He’ll also take part in the company’s long-term incentive plan with a target 2026 award grant carrying a fair value of $7 million, and a one-time award of $2 million in restricted stock units, which will vest three years after the grant date or be paid in full upon his termination.
Goyal’s contract with Molson Coors will carry a non-compete and confidentiality agreement.
Meanwhile, Hattersley will continue to receive his $1.35 million base pay in his advisory role.
In his near-quarter-century at the company, Goyal has held leadership positions across a variety of disciplines, including information technology, finance, M&A and corporate strategy, according to his LinkedIn profile. In addition to a wide spectrum of functions, Goyal has also worked at Molson Coors locations across the globe, including Denver, Colorado; Burton-on-Trent, England; Mumbai, India; and Chicago, Illinois.
He credited the company’s nearly 17,000 employees with the skill to meet demand and achieve goals despite a global economic malaise and across bev-alc in particular.
“Now, I recognize we are operating in a challenging environment clouded by uncertainty across the world, but I also know that we are ready for this moment,” Goyal said in a video. “Because if there’s one thing I’ve learned in my 24 years, it is that this team – whether in Golden, Milwaukee, Chicago, Montreal, Toronto, Burton-on-Trent, Zagreb, Prague, or any of our locations around the world – this team has incredible passion for our company and our brands. This team is capable of doing hard things, and this team is ready to deliver the next phase of growth.”
Hattersley’s CEO journey began at what was then the MillerCoors JV in early 2015, serving as CFO and interim CEO with the retirement of Tom Long. He previously worked at South African Breweries (SAB), which was acquired by Miller in 2002, and helped form the MillerCoors JV in 2008.
Hattersley started his leadership era with some fanfare and the firing of two top executives within the first 24 hours of his appointment. At the time, Hattersley said the company was “not satisfied with our volume performance” and needed to “take action to change that dynamic.”
The CEO role became permanent later that year, while David Heede was appointed CFO. Nearly five years later, the company consolidated its North American business and became Molson Coors Beverage Company.
“On behalf of the entire Board of Directors, I want to express our deepest appreciation to Gavin for more than six years of steady leadership and dedication as president and CEO,” Coors said. “Throughout his tenure, Gavin accelerated our business growth, built a strong culture and has put our company on a path to an even brighter future. I want to thank Gavin for his many years of service, his leadership and his passion for our collective success.”