Adds analyst comments in paragraph 7, updates shares

By Neil J Kanatt

May 8 (Reuters) - Molson Coors TAP.N cut its annual forecasts for sales and profit on Thursday, in anticipation of a hit to demand for its Coors and Miller beer brands as consumers cut back discretionary spending due to tariff-led recession worries.

The company, which is in search of a new CEO, also missed market expectations for its first-quarter results, sending its shares down about 8% in early trading.

U.S. consumers have been paring back on discretionary spending such as alcohol amid elevated prices, with flip-flops in U.S. trade policy stoking recession worries.

Peer Constellation Brands STZ.N had last month forecast downbeat sales and profit for fiscal 2026.

"Uncertainty around the effects of geopolitical events and global trade policy, including the impacts on economic growth, consumer confidence and expectations around inflation and currencies, has pressured the beer industry and consumption trends," outgoing CEO Gavin Hattersley said.

The beer maker said it was reducing non-essential spending and capital projects to help mitigate any challenges.

"Amid leadership transition and lowered growth projections, the company seems adrift at a moment when strategic clarity is essential," said Zak Stambor, senior analyst at Emarketer, adding that Molson Coors "appears to have lost its footing."

However, the company said it could face only minimal direct hit to costs from tariffs as the majority of its beer for the U.S. market is produced locally in its Colorado breweries.

Molson Coors expects a low single-digit decline in annual net sales, compared with previous expectations of a low single-digit growth.

It also sees a low single-digit increase in annual adjusted profit per share, compared with the prior view of a high single-digit increase.

The company's net sales for the three months ended March 31 fell 11% to $2.30 billion, mainly due to the declines in its Americas segment. Analysts expected net sales of $2.41 billion, according to data compiled by LSEG.

Molson Coors' adjusted first-quarter earnings per share of 50 cents also missed estimates of 83 cents.

(Reporting by Neil J Kanatt in Bengaluru; Editing by Shreya Biswas)

((Neil.JKanatt@thomsonreuters.com;))