Tag Archives: Alcoholic Beverages/Drinks

3M to Cut Jobs as Demand for Its Products Weakens

3M Co.

said it is cutting 2,500 manufacturing jobs globally as the company confronts turbulence in overseas markets and weakening consumer demand.

The maker of Scotch tape, Post-it Notes and thousands of other industrial and consumer products said Tuesday that it expects lower sales and profit in 2023 after demand weakened significantly in late 2022, pulling down quarterly performance.

The St. Paul, Minn., company forecast sales this year to slip from last year’s level with weak demand for consumer products and electronic items, particularly smartphones, tablets and televisions, for which 3M provides components. Fourth-quarter sales for 3M’s consumer business dropped nearly 6% from the same period a year earlier.

“Consumers sharply cut discretionary spending and retailers adjusted their inventory levels,” 3M Chief Executive

Mike Roman

said during a conference call. “We expect the demand trends we saw in December to extend through the first half of 2023.”

3M shares were down 5.2% at $116.25 Tuesday afternoon, while major U.S. stock indexes were little changed.

The company said demand for its disposable face masks is receding, as healthcare providers spend less on Covid-19 measures, and mask demand returns to prepandemic levels. 3M said it expects mask sales to decline between $450 million and $550 million this year from 2022.

3M executives said the spread of Covid infections in China is weighing on sales there, and sporadic plant closings are interrupting industrial production. China also is reducing production of consumer electronics because of weakening consumer demand, they said, and 3M’s exit from its business in Russia last year will also contribute to lower sales this year.

The 2,500 layoffs represent roughly 2.6% of the company’s workforce, which a regulatory filing said was about 95,000 at the end of 2021. Mr. Roman declined to specify where the job cuts will take place, or whether the company might make further reductions as it reviews its supply chains and prepares to spin off its healthcare unit.

“We’re looking at everything that we do as we manage through the challenges that we’re facing in the end markets and we focus on driving improvements,” he said.

The company said it would take a pretax restructuring charge in the first quarter of $75 million to $100 million.

Mr. Roman said the job cuts were unrelated to litigation facing the company. 3M is defending against allegations that the so-called forever chemicals it has produced for decades have contaminated soil and drinking water. It is also involved in litigation over foam earplugs its subsidiary Aearo Technologies LLC sold to the military. About 230,000 veterans have filed complaints in federal court alleging the earplugs failed to protect them from service-related hearing loss.

3M has said the earplugs were effective when military personnel were given sufficient training on how to use them. In litigation over firefighting foam that incorporated forms of forever chemicals, 3M is expected to argue that the products were produced to U.S. military specifications, granting the company legal protection as a government contractor.

In both cases, Mr. Roman said the company is focused on finding a way forward.

3M said the strong value of the U.S. dollar continues to erode sales from other countries when foreign currencies are converted to dollars.

The company forecast that sales for the quarter ending March 31 will be down 10% to 15% from the same period last year. For the full year, the company projects sales to fall between 6% and 2%, and expects adjusted earnings of $8.50 a share to $9 a share. The company earned $10.10 a share in 2022, excluding special charges, and analysts surveyed by FactSet were expecting the company to earn $10.22 in 2023.

For the fourth quarter, the company posted a profit of $541 million, or 98 cents a share, compared with $1.34 billion, or $2.31 a share, a year earlier.

Stripping out one-time items, including costs tied to exiting the company’s operations making forever chemicals, adjusted earnings came to $2.28 a share. Analysts were looking for adjusted earnings of $2.36 a share, according to FactSet.

Sales fell 6% to $8.08 billion for the quarter, slightly topping expectations of analysts surveyed by FactSet.

Mr. Roman said there were promising signs for some of 3M’s businesses, including in biopharma processing, home improvement and automotive electrification, the last of which he said grew 30% in 2022 to become a roughly $500 million business.

“There’s more to it than consumer electronics, but certainly the consumer-electronics dynamics are the story of the day,” he said.

Write to John Keilman at john.keilman@wsj.com and Bob Tita at robert.tita@wsj.com

Copyright ©2022 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8

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20 dividend stocks with high yields that have become more attractive right now

Income-seeking investors are looking at an opportunity to scoop up shares of real estate investment trusts. Stocks in that asset class have become more attractive as prices have fallen and cash flow is improving.

Below is a broad screen of REITs that have high dividend yields and are also expected to generate enough excess cash in 2023 to enable increases in dividend payouts.

REIT prices may turn a corner in 2023

REITs distribute most of their income to shareholders to maintain their tax-advantaged status. But the group is cyclical, with pressure on share prices when interest rates rise, as they have this year at an unprecedented scale. A slowing growth rate for the group may have also placed a drag on the stocks.

And now, with talk that the Federal Reserve may begin to temper its cycle of interest-rate increases, we may be nearing the time when REIT prices rise in anticipation of an eventual decline in interest rates. The market always looks ahead, which means long-term investors who have been waiting on the sidelines to buy higher-yielding income-oriented investments may have to make a move soon.

During an interview on Nov 28, James Bullard, president of the Federal Reserve Bank of St. Louis and a member of the Federal Open Market Committee, discussed the central bank’s cycle of interest-rate increases meant to reduce inflation.

When asked about the potential timing of the Fed’s “terminal rate” (the peak federal funds rate for this cycle), Bullard said: “Generally speaking, I have advocated that sooner is better, that you do want to get to the right level of the policy rate for the current data and the current situation.”

Fed’s Bullard says in MarketWatch interview that markets are underpricing the chance of still-higher rates

In August we published this guide to investing in REITs for income. Since the data for that article was pulled on Aug. 24, the S&P 500
SPX,
-0.50%
has declined 4% (despite a 10% rally from its 2022 closing low on Oct. 12), but the benchmark index’s real estate sector has declined 13%.

REITs can be placed broadly into two categories. Mortgage REITs lend money to commercial or residential borrowers and/or invest in mortgage-backed securities, while equity REITs own property and lease it out.

The pressure on share prices can be greater for mortgage REITs, because the mortgage-lending business slows as interest rates rise. In this article we are focusing on equity REITs.

Industry numbers

The National Association of Real Estate Investment Trusts (Nareit) reported that third-quarter funds from operations (FFO) for U.S.-listed equity REITs were up 14% from a year earlier. To put that number in context, the year-over-year growth rate of quarterly FFO has been slowing — it was 35% a year ago. And the third-quarter FFO increase compares to a 23% increase in earnings per share for the S&P 500 from a year earlier, according to FactSet.

The NAREIT report breaks out numbers for 12 categories of equity REITs, and there is great variance in the growth numbers, as you can see here.

FFO is a non-GAAP measure that is commonly used to gauge REITs’ capacity for paying dividends. It adds amortization and depreciation (noncash items) back to earnings, while excluding gains on the sale of property. Adjusted funds from operations (AFFO) goes further, netting out expected capital expenditures to maintain the quality of property investments.

The slowing FFO growth numbers point to the importance of looking at REITs individually, to see if expected cash flow is sufficient to cover dividend payments.

Screen of high-yielding equity REITs

For 2022 through Nov. 28, the S&P 500 has declined 17%, while the real estate sector has fallen 27%, excluding dividends.

Over the very long term, through interest-rate cycles and the liquidity-driven bull market that ended this year, equity REITs have fared well, with an average annual return of 9.3% for 20 years, compared to an average return of 9.6% for the S&P 500, both with dividends reinvested, according to FactSet.

This performance might surprise some investors, when considering the REITs’ income focus and the S&P 500’s heavy weighting for rapidly growing technology companies.

For a broad screen of equity REITs, we began with the Russell 3000 Index
RUA,
-0.18%,
which represents 98% of U.S. companies by market capitalization.

We then narrowed the list to 119 equity REITs that are followed by at least five analysts covered by FactSet for which AFFO estimates are available.

If we divide the expected 2023 AFFO by the current share price, we have an estimated AFFO yield, which can be compared with the current dividend yield to see if there is expected “headroom” for dividend increases.

For example, if we look at Vornado Realty Trust
VNO,
+1.01%,
the current dividend yield is 8.56%. Based on the consensus 2023 AFFO estimate among analysts polled by FactSet, the expected AFFO yield is only 7.25%. This doesn’t mean that Vornado will cut its dividend and it doesn’t even mean the company won’t raise its payout next year. But it might make it less likely to do so.

Among the 119 equity REITs, 104 have expected 2023 AFFO headroom of at least 1.00%.

Here are the 20 equity REITs from our screen with the highest current dividend yields that have at least 1% expected AFFO headroom:

Company Ticker Dividend yield Estimated 2023 AFFO yield Estimated “headroom” Market cap. ($mil) Main concentration
Brandywine Realty Trust BDN,
+1.82%
11.52% 12.82% 1.30% $1,132 Offices
Sabra Health Care REIT Inc. SBRA,
+2.02%
9.70% 12.04% 2.34% $2,857 Health care
Medical Properties Trust Inc. MPW,
+1.90%
9.18% 11.46% 2.29% $7,559 Health care
SL Green Realty Corp. SLG,
+2.18%
9.16% 10.43% 1.28% $2,619 Offices
Hudson Pacific Properties Inc. HPP,
+1.55%
9.12% 12.69% 3.57% $1,546 Offices
Omega Healthcare Investors Inc. OHI,
+1.30%
9.05% 10.13% 1.08% $6,936 Health care
Global Medical REIT Inc. GMRE,
+2.03%
8.75% 10.59% 1.84% $629 Health care
Uniti Group Inc. UNIT,
+0.28%
8.30% 25.00% 16.70% $1,715 Communications infrastructure
EPR Properties EPR,
+0.62%
8.19% 12.24% 4.05% $3,023 Leisure properties
CTO Realty Growth Inc. CTO,
+1.58%
7.51% 9.34% 1.83% $381 Retail
Highwoods Properties Inc. HIW,
+0.76%
6.95% 8.82% 1.86% $3,025 Offices
National Health Investors Inc. NHI,
+1.90%
6.75% 8.32% 1.57% $2,313 Senior housing
Douglas Emmett Inc. DEI,
+0.33%
6.74% 10.30% 3.55% $2,920 Offices
Outfront Media Inc. OUT,
+0.70%
6.68% 11.74% 5.06% $2,950 Billboards
Spirit Realty Capital Inc. SRC,
+0.72%
6.62% 9.07% 2.45% $5,595 Retail
Broadstone Net Lease Inc. BNL,
-0.93%
6.61% 8.70% 2.08% $2,879 Industial
Armada Hoffler Properties Inc. AHH,
-0.08%
6.38% 7.78% 1.41% $807 Offices
Innovative Industrial Properties Inc. IIPR,
+1.09%
6.24% 7.53% 1.29% $3,226 Health care
Simon Property Group Inc. SPG,
+0.95%
6.22% 9.55% 3.33% $37,847 Retail
LTC Properties Inc. LTC,
+1.09%
5.99% 7.60% 1.60% $1,541 Senior housing
Source: FactSet

Click on the tickers for more about each company. You should read Tomi Kilgore’s detailed guide to the wealth of information for free on the MarketWatch quote page.

The list includes each REIT’s main property investment type. However, many REITs are highly diversified. The simplified categories on the table may not cover all of their investment properties.

Knowing what a REIT invests in is part of the research you should do on your own before buying any individual stock. For arbitrary examples, some investors may wish to steer clear of exposure to certain areas of retail or hotels, or they may favor health-care properties.

Largest REITs

Several of the REITs that passed the screen have relatively small market capitalizations. You might be curious to see how the most widely held REITs fared in the screen. So here’s another list of the 20 largest U.S. REITs among the 119 that passed the first cut, sorted by market cap as of Nov. 28:

Company Ticker Dividend yield Estimated 2023 AFFO yield Estimated “headroom” Market cap. ($mil) Main concentration
Prologis Inc. PLD,
+1.29%
2.84% 4.36% 1.52% $102,886 Warehouses and logistics
American Tower Corp. AMT,
+0.68%
2.66% 4.82% 2.16% $99,593 Communications infrastructure
Equinix Inc. EQIX,
+0.62%
1.87% 4.79% 2.91% $61,317 Data centers
Crown Castle Inc. CCI,
+1.03%
4.55% 5.42% 0.86% $59,553 Wireless Infrastructure
Public Storage PSA,
+0.11%
2.77% 5.35% 2.57% $50,680 Self-storage
Realty Income Corp. O,
+0.26%
4.82% 6.46% 1.64% $38,720 Retail
Simon Property Group Inc. SPG,
+0.95%
6.22% 9.55% 3.33% $37,847 Retail
VICI Properties Inc. VICI,
+0.41%
4.69% 6.21% 1.52% $32,013 Leisure properties
SBA Communications Corp. Class A SBAC,
+0.59%
0.97% 4.33% 3.36% $31,662 Communications infrastructure
Welltower Inc. WELL,
+2.37%
3.66% 4.76% 1.10% $31,489 Health care
Digital Realty Trust Inc. DLR,
+0.69%
4.54% 6.18% 1.64% $30,903 Data centers
Alexandria Real Estate Equities Inc. ARE,
+1.38%
3.17% 4.87% 1.70% $24,451 Offices
AvalonBay Communities Inc. AVB,
+0.89%
3.78% 5.69% 1.90% $23,513 Multifamily residential
Equity Residential EQR,
+1.10%
4.02% 5.36% 1.34% $23,503 Multifamily residential
Extra Space Storage Inc. EXR,
+0.29%
3.93% 5.83% 1.90% $20,430 Self-storage
Invitation Homes Inc. INVH,
+1.58%
2.84% 5.12% 2.28% $18,948 Single-family residental
Mid-America Apartment Communities Inc. MAA,
+1.46%
3.16% 5.18% 2.02% $18,260 Multifamily residential
Ventas Inc. VTR,
+1.63%
4.07% 5.95% 1.88% $17,660 Senior housing
Sun Communities Inc. SUI,
+2.09%
2.51% 4.81% 2.30% $17,346 Multifamily residential
Source: FactSet

Simon Property Group Inc.
SPG,
+0.95%
is the only REIT to make both lists.

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Monster Beverage Buys Owner of Craft Breweries Cigar City, Oskar Blues for $330 Million

Monster Beverage Corp.

MNST 0.41%

has been mulling a move into booze for years. It finally took the plunge Thursday, becoming the latest big soft-drink company to try its hand at alcoholic beverages.

Monster, best known for its namesake energy drinks, said it had forged a deal to buy craft-beer and hard-seltzer company CANarchy Craft Brewery Collective LLC for $330 million.

The deal comes as soda makers and alcohol companies move onto one another’s turf in bids to spur growth.

Constellation Brands Inc.

STZ.B 1.65%

last week said it struck a deal with

Coca-Cola Co.

to launch canned cocktails under the Fresca soda brand. Last year, Coke introduced an alcoholic version of its Topo Chico seltzer in a partnership with

Molson Coors Beverage Co.

TAP.A 3.91%

Boston Beer Co., owner of popular brands like Sam Adams and Dogfish Head, launched its hard seltzer Truly in 2016. CEO Dave Burwick explains the company’s cultural pivot that made it No. 2 in the rapidly growing category. (Video from 5/19/20)

PepsiCo Inc., meanwhile, is set to roll out an alcoholic version of Mountain Dew in a venture with Samuel Adams brewer

Boston Beer Co.

SAM 0.82%

And

Anheuser-Busch InBev SA

BUD 3.08%

this month is introducing a line of Bud Light-branded hard soda in cola, cherry-cola, orange and lemon-lime flavors.

In 2019,

Rodney Sacks,

now chairman and co-CEO of Corona, Calif.-based Monster, told shareholders that the company had its sights on hard seltzers, malt beverages and spirits.

“We do have an appetite to look at alternative brands and to develop more beverages in the nonalcoholic…as well as the alcoholic market,” Mr. Sacks said at the time.

The CANarchy acquisition includes the Cigar City, Oskar Blues, Deep Ellum, Perrin Brewing, Squatters and Wasatch brands but excludes CANarchy’s stand-alone restaurants.

Monster said it expects to complete the transaction during the first calendar quarter, adding that the organizational structure for the energy-drinks business will remain unchanged. CANarchy, founded in 2015, will continue to function independently, Monster said.

Mr. Sacks said on a call with investors Thursday that while CANarchy is primarily a craft-beer brewer, it also has hard seltzer brands such as Wild Basin, “and that’s something we are planning to focus on and develop.” Separately, Monster also has been developing its own hard-seltzer brand, which is “proceeding quite quickly now,” he said.

Monster executives added that they are also exploring spirits-based drinks.

Shares in Monster closed Thursday trading up 0.4% to $94.37.

Write to Jennifer Maloney at jennifer.maloney@wsj.com

Copyright ©2022 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8

Appeared in the January 14, 2022, print edition as ‘Monster Beverage Buys Owner Of Multiple Craft Breweries.’

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Molson Coors Decided to Reopen Its Offices. Things Got Complicated.

Molson Coors Beverage Co. learned some lessons after bringing corporate employees back to their offices in October. Color-coded wristbands can help colleagues signal their openness to a hug. It’s important to schedule 10 minutes of travel time between meetings. And it’s tough to get some people into meeting rooms with masks if they can join a video call without a mask from their desk.

The company, which makes Coors Light and Miller Lite beer, closed its corporate offices in March 2020 when Covid-19 emerged, sending thousands of employees home. Early this year, the brewer began planning for their return.

The most difficult decision, Chief Executive

Gavin Hattersley

said, was adopting a vaccine mandate for 2,200 corporate employees in the U.S. The company did so in August, a month before President Biden announced a vaccine directive for companies with more than 100 employees. The White House’s policy is now temporarily blocked by a federal appeals court.

The CEO said he believed Molson’s vaccine mandate was crucial for making employees feel safe enough to return to the office but worried staff would quit. “How many folk would leave?” he said in a recent interview. “We just didn’t have the answer to that.”

In the end, few did. Less than 1% of U.S. corporate staff left the company, either because of the vaccine requirement or because of the mandatory return to offices, Molson said.

Red, yellow and green wristbands indicating comfort level with physical contact are worn by employees in the company pub. Green represents a hug or high-five; yellow represents an elbow bump.

What Molson and many other companies are discovering is that returning to an office isn’t one event. It requires a series of decisions, some of which have to be revisited to keep pace with new developments. Many are still grappling with when and how to bring workers back as the emergence of the Omicron variant prompts new travel restrictions and some delays in office reopenings.

Molson recently told the U.S. corporate staff the company will require vaccine boosters, a decision that was under way before the variant became widely known. Molson hasn’t changed its U.S. office or travel policies because of Omicron. But employees who returned in November to Molson’s U.K. office in Burton-Upon-Trent, England, will be working remotely again starting Monday under the U.K.’s latest work-from-home order.

‘You couldn’t communicate too much’

Molson, based in Chicago, has 17,000 employees around the world. In March 2020, when the brewer sent its corporate staff home, the company’s leaders hoped they would be able to celebrate the reopening of their offices that year by the Fourth of July. Molson’s manufacturing employees continued to work at its breweries throughout the pandemic with social-distancing protocols and other Covid-19 safety measures. The corporate staff, meanwhile, worked from home for more than 18 months.

Mr. Hattersley wanted to bring his corporate employees back five days a week. But through employee surveys, virtual chats with the CEO and other employee forums, Molson heard from workers who said they valued the flexibility of working from home. On top of that, many were afraid that returning to the office wasn’t safe. Others had concerns about securing child care and handling unexpected school closures.

The Molson leadership team early this year discussed a four-day-a-week plan, then settled on a schedule of three mandatory days a week in the North America offices. All corporate employees in the U.S. and Canada would have to report to their office on Mondays, Tuesdays and Thursdays. With everyone in the office on the same days, colleagues could more effectively meet and collaborate in person, the company’s leaders reasoned.

“I like people being together and this time last year, I would have probably thought we’d be back five days a week,” said Mr. Hattersley, 59, a South Africa native who joined the company in 2002 and became CEO in 2019. “But the world has moved on from that process. And as a leadership team, as a company, we moved along with it. That just wasn’t going to work. It wasn’t what our people needed and it wasn’t where the world is.”

Samantha Wolkowicz walks through the halls of the Coors office. Masks are required in shared spaces.

Communicating that plan—and explaining it—became Molson’s next big challenge. The company realized that employees with children needed a long lead time to prepare for new work and child care routines. So Molson told its U.S. staff in April about the three-day-a-week plan, and set a Sept. 7 reopening date for the U.S. offices. About 800 staff in North America would be reporting to offices where they had never worked before.

Molson distributed detailed memos on the reopening plans, tipsheets for hybrid working, guides to its offices and answers to questions that employees submitted by email. Mr. Hattersley hosted monthly sessions in which he answered questions in a virtual chat room.

“You actually couldn’t communicate too much,” he said. “You can’t just assume that people are going to understand what your rationale is.”

Employees wanted to know whether going back to the office would put them or their families at risk. Many had children who weren’t yet eligible for vaccination.

To address those concerns, Mr. Hattersley in August decided to adopt a vaccine mandate for all 2,200 U.S. corporate employees with the exception of about 35 unionized clerical staff, and pushed back the reopening date to October to allow time for employees to be fully vaccinated. Most unionized clerical workers were vaccinated; others would have to be tested weekly for Covid-19. All new U.S. hires, including in the breweries, would have to be vaccinated, as would visitors to Molson’s U.S. offices.

Coors employees working at cubicles aren’t required to wear masks.

Some employees were upset by the announcement. Others welcomed the vaccine mandate but worried about the safety—or length—of their commutes on public transportation.

Some parents with babies and toddlers said they would have preferred a schedule with just two mandatory days in the office so they could spend more time at home. Sara Welch Goucher, an e-commerce director in the Chicago office, was one of them. During the day, a caregiver watches her nearly 1-year-old daughter and 2-year-old son in their home in Wheaton, Ill. Mrs. Goucher said her commute to downtown has increased to 90 minutes from 70 before the pandemic because trains on her route are running less frequently now.

“I got used to seeing my children in little moments between meetings,” said Mrs. Goucher, who is 35 and has worked at the company for three-and-a-half years. “But I do want some time in the office. It gives me a different kind of energy.”

Coffee, doughnuts and beer

In interviews with more than a dozen workers and executives, employees said they were excited to see their colleagues in person again. The team planning the U.S. office return decided against a party atmosphere for the first day back and went low key, said Jackie Heard, a human-resources executive who helped lead the effort. Gone was the idea of a barbecue and music. Instead, the company offered free coffee and doughnuts when employees arrived.

Workers found welcome packs with hand sanitizer, stress balls and handwritten notecards on their desks. Company leaders greeted people throughout the first day. Members of the IT team also circulated, ready to help as people struggled to connect to Wi-Fi networks and printers.

In the marketing department at the company’s Chicago headquarters, staff could pick up a wrist band in green, yellow or red to indicate when they were open to a hug or high-five, or preferred an elbow bump or a wave. Molson’s U.K. office offered green, yellow and red lanyards for the same purpose.

Josh McDonald, a Coors Light marketing manager who took a new position and relocated during the pandemic from Florida to Chicago, chose a green wristband. He had never met his teammates in person.

“The funniest thing is the jubilation of seeing someone that you’ve been communicating with for a year and a half through [

Microsoft

] Teams, like, in 3-D,” said Mr. McDonald, 35, who has worked at the company for four years. “There was a lot of soft-stepping” as colleagues gauged whether to go in for a hug.

“I’m a hugger but I didn’t want to invade somebody’s bubble,” he said.

Susan Waldman, 56, a global business process owner in Molson’s global business services department, was eager to see her colleagues again and the vaccine mandate made her feel safer about the reopening, she said. But she was disappointed the mandate didn’t cover Molson’s brewery workers or clerical staff. “I feel like everyone needs to do their part,” she said.

Molson said the breweries allowed for social distancing in a way that its offices didn’t, and that the brewery workers had demonstrated that they could keep working safely during the pandemic.

Back in an office for the first time in more than a year and a half, employees had to learn all over again some of the tricks and habits of office life. Among them: Don’t forget your cellphone charger or your office ID badge. They also discovered that they needed to schedule 10 minutes between in-person meetings to walk from one to the next.

Employees can remove masks to drink at the company pub in the late afternoon.

The company is asking employees to use office days for in-person collaboration and remote days for focused, individual work. Working from home is optional on Wednesdays and Fridays, and so far most employees are doing just that, the company said. The company has distributed guides for supervisors on managing hybrid work, and has instructed them to intervene if they see anyone being excluded from a meeting or a decision because he or she isn’t physically present. Mr. Hattersley generally works from home on Wednesdays and Fridays to set an example, Molson said.

One hiccup is that many employees are conducting meetings by videoconference at their desks, where they can remove their masks, rather than gathering in conference rooms, where they must wear masks.

“We can do a better job at that,” said Ms. Heard, the human resources executive. “Encouraging people to get out of their offices and having interactions is going to be important for us.”

Sarah Irizarry, a 30-year-old marketing manager in the Chicago office, is wrestling with those requirements. Sitting in a conference room for a video meeting with a marketing agency while wearing masks presents a “double barrier,” she said. Mrs. Irizarry said she preferred to sit at her desk without a mask for those meetings and was trying to schedule them on her days at home.

Most Molson workers embraced the company’s new approach to office life. One sign is the level of activity inside pubs in the Chicago and Milwaukee offices. They now buzz in the late afternoons as colleagues catch up with one another over beers.

Write to Jennifer Maloney at jennifer.maloney@wsj.com

Copyright ©2021 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8

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Craft beer icon Bell’s Brewery bought by global conglomerate

Bell’s Brewery, one of the most iconic craft brewers in the U.S., is being acquired by a unit of global beverage conglomerate Kirin Group, adding to the long list of beer-industry consolidation in recent years.

Founder Larry Bell, who started the brewery in Kalamazoo, Mich., in 1985, is retiring and said Wednesday he is selling the company to Australia-based Lion Little World Beverages , which is owned by Japan’s Kirin
2503,
+0.85%.
The move will put Bell’s under the same corporate umbrella as Colorado-based New Belgium Brewery, which sold to Lion in 2019.

“This decision ultimately came down to two determining factors,” Bell said in a statement. “First, the folks at New Belgium share our ironclad commitment to the craft of brewing and the community-first way we’ve built our business. Second, this was the right time. I’ve been doing this for more than 36 years and recently battled some serious health issues. I want everyone who loves this company like I do to know we have found a partner that truly values our incredible beer, our culture, and the importance of our roots here in Michigan.”

The price of the deal was not disclosed, and no major changes or layoffs are expected for the time being. “Beer drinkers should expect no changes to Bell’s current beers,” the company added.

Bell’s Executive Vice President Carrie Yunker will continue to lead day-to-day operations, and will report to New Belgium Chief Executive Steve Fechheimer.

“In Bell’s, we see a likeminded group of people dedicated to making the world’s best beer — doing business in a way that improves the wellbeing of the people who power our success,” Fechheimer said in a statement. “We couldn’t be happier to welcome the entire Bell’s team.”

Bell’s is best known for its Two Hearted IPA, which in 2020 was named best beer in America for the fourth straight year by the American Homebrewers Association magazine Zymurgy. That same survey ranked Bell’s Hopslam the No. 5 beer, and Bell’s as the best brewery in America.

After enjoying boom years and rapid expansion in the late 2000s, the craft beer industry has sharply pulled back over the past decade, suffering from oversaturated markets, slower sales and competition from hard seltzers. Lion bought New Belgium, maker of Fat Tire, nearly two years ago for an undisclosed price, and Japan’s Sapporo Holdings Ltd.
2501,
+0.13%
bought San Francisco’s Anchor Brewing, which billed itself as the oldest craft brewer in the U.S., in 2017 for about $85 million. In 2019, Boston Beer Co.
SAM,
-2.99%
bought Delaware’s Dogfish Head Brewery for about $300 million, and Anheuser-Busch InBev SA
BUD,

bought Kona Brewing Co. and Redhook Brewery in a deal valued at more than $200 million.

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Brace for Higher Prices for Ice Cream, Beer and Bottled Water

The makers of some of the world’s bestselling food and drink brands warned they would keep raising prices as they grapple with the strongest inflation in years.

Nestlé SA, Diageo PLC, Anheuser-Busch InBev SA and Danone SA all said Thursday that sales were rising as key markets rebound from the pandemic, but that the recovery was also leading to rapidly increasing costs for ingredients, packaging and transport.

Nestlé said its ice creams had gotten more expensive, spirits giant Diageo has raised prices on brands like Baileys and Casamigos tequila, and Budweiser brewer AB InBev is exploring higher prices for its beers. Meanwhile, Danone, which makes Activia yogurt and Evian water, said it would increase prices across all of its categories to try preserve its profitability.

“We do expect price increases to accelerate from what you saw in the first half,” said Nestlé Chief Executive Mark Schneider. “After several years of low inflation, all of a sudden it accelerated very strongly starting in March and is continuing to accelerate.”

Companies across many sectors are contending with rising costs from coffee to aluminum and shipping as the recovery from Covid-19 gains steam. That is leading to higher prices for many goods, pushing U.S. inflation to rise at the fastest pace for more than a decade.

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