What happened

Molson Coors (TAP 0.63%) stock underperformed a weak market last month, falling 21% compared to a 12.5% drop in the S&P 500, according to data provided by S&P Global Market Intelligence.

The decline put the beer giant in bear market territory along with most of its peers, having fallen 30% so far in 2020 compared to a 24% drop in broader indexes.

Two women toast with beers.

Image source: Getty Images.

So what

Molson Coors continues to produce its alcoholic beverages despite the COVID-19 pandemic, and in fact its consumer staples status means it is officially an essential part of the economy that must remain operational. However, the company saw an abrupt pause in several important revenue lines last month.

These include the widespread closing of restaurants and bars, plus the cancellation of sporting events, concerts, and nearly every other form of public entertainment across key markets like the U.S. and Canada. On-premise beer sales, as a result, plunged in recent weeks even as demand spiked at supermarket chains and other retailers.

Now what

Molson Coors will announce its latest earnings results on April 30, and investors will soon learn the scope of COVID-19's impact on sales and earnings. The company will likely discuss its liquidity position, too, since its loss of revenue might require significant cost cuts and additional debt to see the business safely through this historic operating disruption.