Molson Coors is moving and shaking, trying to find new avenues of growth, shed fat and look in shape. The company recently changed its official name to Molson Coors Beverage Co., canned the MillerCoors title, consolidated business divisions, announced layoffs, closed its Denver office and refocused its overall game plan:
“[Molson Coors] plans to continue investing in the above-premium segment, putting more money behind emerging brands such as Saint Archer Gold, Blue Moon Light Sky, Cape Line and Arnold Palmer Spiked in the U.S., and Coors Slice in Canada. Molson Coors will pursue beyond beer opportunities, such as a hard coffee and a canned wine in the U.S., a cider expansion in the U.K. and Truss’s forthcoming line of cannabis-infused nonalcoholic beverages in Canada.”
Molson Coors will also invest in non-alcoholic health drinks. Molson Coors and L.A. Libations announced a multiyear partnership that includes a significant minority equity investment by Molson Coors in L.A. Libations as well as category-exclusive access to the company’s services. Molson Coors also will hold two seats on the L.A. Libations board. From the press release:
“Developing a strong portfolio outside the traditional beer category is an important part of our long-term strategy, and this partnership with L.A. Libations enables us to pursue opportunities in this space without needing an extensive nonalcohol infrastructure,” said Pete Marino, president of emerging growth for Molson Coors. “Their expertise in creating and nurturing brands is especially valuable at a time when much of the growth in the beverage industry is coming from brands and categories that often were nonexistent five years ago.”
L.A. Libations targets health-conscious consumers with a variety of interesting sounding brands like: The Living Apothecary, a probiotic kefir water tea; Triminio, a low-cal protein water; and Aloe Gloe, the nation’s only premium organic aloe vera water. L.A. Libations has also helped Molson Coors begin to expand the Clearly Kombucha brand it acquired in June 2018.
What does the investment get Molson Coors? For starters, it includes a stake in new products launched by L.A. Libations, and the multiyear, category-exclusive agreement gives Molson Coors access to brand creation, brand building and consulting services.
Also interesting: With brands created by L.A. Libations, Molson Coors will have the option to purchase the brand in full. For brands it does not purchase, Molson Coors still will hold a financial stake in L.A. Libations’ ownership of the brand.
“We are honored that Molson Coors has chosen L.A. Libations as their emerging brand partner, and we intend to jointly become a major player in the nonalcohol space,” said Danny Stepper, co-founder and CEO of L.A. Libations. “This strategic partnership with Molson Coors is an important step for our company, brands and partners, as it unlocks access to brand-building capital, capabilities and efficiencies towards utilization of a world-class distribution network.”