|Lack of Precipitation in Canada, Could Lead to More Beer Consumption
Average precipitation in Canada declined 35.4% year on year in August while temperatures increased 1.3%. We expect continued dry weather in Ontario and Quebec, and the usual summer promotional activity, should drive strong volume growth for TAP. We expect Coors Light's 2Q momentum to continue into 3Q, and we remain of the view that TAP is nearing or at an inflection point in Canada.
U.K. Rains Clear, Time to Drink Some Beer
In the U.K., August precipitation levels were 23% drier than last year and 15% drier than the long-term historical average. This is a welcome change, given the record rain in the U.K. the prior two months. We believe continued dry weather should be a positive for both TAP and BUD, as both cited the heavy summer rain in poor 2Q and July U.K. results.
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