Molson Coors invests $100m in hard seltzer expansion

Molson Coors invests $100m in hard seltzer expansion

Brewing large Molson Coors Beverage Firm will make investments US$100 million to spice up manufacturing of spirit and malt-based exhausting seltzers in Canada.

Hard seltzer brands Vizzy and Coors Seltzer

Molson Coors’ Canadian enterprise will make exhausting seltzers its high precedence this 12 months

The brand new improve to Molson Coors’ Toronto website will give the brewer the capabilities to make spirit and malt-based exhausting seltzers for the ‘fast-growing’ Canadian market.

The growth, which is able to greater than quadruple capability, is because of be accomplished in early 2022.

The funding will contain the set up of reverse osmosis and nanofiltration expertise, a flavour kitchen, a blender and a canning line. The brand new canning line is able to dealing with as much as 1.5m hectolitres in annual manufacturing.

The brand new gear will permit Molson Coors to extend exhausting seltzer manufacturing by greater than 300% at full capability.

“The primary precedence for our Canadian enterprise is ramping up our exhausting seltzers to place ourselves as a top-share performer,” mentioned Brian Erhardt, chief provide chain officer for Molson Coors.

“These investments will assist us management our personal future on manufacturing, balancing manufacturing between our personal services and trusted third events.”

The corporate will proceed to make use of unnamed companions for the manufacturing of exhausting seltzers and ‘beyond-beer drinks’, at the same time as capability is boosted.

Molson Coors predicts the exhausting seltzer class will turn into a multi-billion-dollar phase over the following few years in Canada – a market in an early stage of maturation, the agency mentioned.

The introduction of the Vizzy and Coors Seltzer manufacturers in Canada this 12 months was the corporate’s “most profitable launch” in current instances, based on Molson Coors’ Canada chief business officer Martin Coyle.

“We’re speaking about placing Coors Gentle-levels of promoting funding behind these two manufacturers, and we goal to earn the identical share within the exhausting seltzer phase in Canada as we’ve in beer,” mentioned Coyle. “We now have large ambitions for the dimensions we need to generate within the subsequent three years.”

In 2020, the world’s third-largest brewer put in new canning traces and different gear to spice up its US capability fivefold for the manufacturing of exhausting seltzers and different drinks. The transfer helped the corporate double its share of the exhausting seltzer phase final 12 months, Molson Coors mentioned.

The Canadian growth is a part of a ‘broader funding plan to develop Molson Coors’ above-premium exhausting seltzer enterprise throughout the globe’.

New exhausting seltzer launch

Molson Coors additionally just lately unveiled its spirit-based Proof Level exhausting seltzer line in 27 US states.

The zero-sugar Proof Level (5% ABV) vary is available in 4 flavours: whiskey seltzer with blackberry, rum seltzer with mango pineapple, Tequila seltzer with grapefruit, and vodka seltzer with lime.

The corporate mentioned there are few exhausting seltzer manufacturers in the marketplace being made utilizing ‘actual’ spirits. Proof Level seeks to face out amongst its rivals by mixing seltzer with spirits, resembling Tequila, barrel-aged whiskey, Caribbean rum and six-times-distilled vodka.

Molson Coors has partnered with celebrities together with rapper Meek Mill and filmmaker Terrence Jenkins on the launch.

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