American beer maker Molson Coors (TAP) has decided to retreat on some of its Diversity, Equity, and Inclusion (DEI) policies amid growing pressure from activists. According to a Wall Street Journal report, Molson Coors will also no longer participate in the Human Rights Campaign’s Corporate Equality Index, a scoring system through which the advocacy group gives scores based on a company’s LGBTQ+ inclusion in the workplace.
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Among other changes, TAP said that it would discontinue supplier diversity goals that focus on sourcing from companies run by minorities or women. Also, the company said that from next year, executive compensation will be based solely on performance and not on “aspirational representation goals.” In an email to employees, the company explained that the pullback from DEI will help it to have a broader view in which all employees will feel welcomed.
Rising Pressure on Companies to Reconsider DEI
Molson Coors is the latest consumer company to bow to the rising pressure from conservative groups and activists, including filmmaker Robby Starbuck, against “woke” DEI policies. Some conservatives believe that DEI policies discriminate against White men. TAP’s human resource team has been striving to bring about changes to its DEI stance since March this year.
Molson Coors shared the email sent to employees with Starbuck. The filmmaker took to social media platform X to claim his victory, stating that he had cautioned TAP’s management that their policies would be exposed.
Other major companies that have recently changed their DEI initiatives include Ford (F), Lowe’s (LOW), Harley-Davidson (HOG), Tractor Supply (TSCO), and John Deere (DE). Meanwhile, the Human Rights Campaign Foundation believes that the pullback from DEI policies could make workplaces less safe and less inclusive.
Is TAP Stock a Buy?
Analysts remain cautious about Molson Coors stock, as they see the current downturn in the beer industry as a persistent threat. TAP’s strategic initiatives to boost its premium and non-traditional beer segments may not take shape immediately, posing continued pressure on the stock. In line with its strategy to focus on premium offerings in high-growth categories, the company recently sold four craft beer brands to Canadian cannabis company Tilray Brands (TLRY).
On TipRanks, TAP stock has a Hold consensus rating based on two Buys, nine Holds, and two Sell ratings. The average Molson Coors price target of $59.83 implies 5.2% upside potential from current levels. TAP shares have lost 5.6% of their value year-to-date.
