2 weeks Ago By Martín Caballero
Molson Coors has acquired a majority stake in energy drink brand ZOA in a $53 million cash transaction, expanding its growing non-alcoholic beyond beer portfolio and adding to rising M&A interest across the energy space. The deal, announced this morning during Molson Coors’ Q3 earnings call, closed last month. The transaction will be recorded as a business combination.
“We believe ZOA is well-positioned, particularly as it plays in the better-for-you segment that is outpacing energy category growth,” said Gavin Hattersley, CEO of Molson Coors, speaking on a conference call this morning. “With the support of its co-founder, Dwayne ‘The Rock’ Johnson, we have built a strong foundation for ZOA over the past three years, and it’s time to pursue the next stage of growth and scale. Taking this increased stake allows us to lead the entirety of the brand’s marketing, retail and direct-to-consumer sales development as we drive brand awareness and distribution, leveraging the strength of our network.
” At its in 2021, ZOA was expected to drive Molson Coors’ “Beyond Beer” ambitions outside alcoholic drinks. Leveraging the of actor/entrepreneur Dwayne “The Rock” Johnson – a co-founder alongside his business partner Dany Garcia, fitness coach Dave Rienzi and Juggernaut Capital Partners managing partner John Shulman – ZOA quickly a presence in the highly competitive energy category, stating its intentions with a splashy . The energy brand’s retail business has been serviced by incubator L.
A. Libations, in which Molson Coors a minority stake. ZOA’s introduction came just a few months after Molson Coors a 10-year distribution agreement with another major non-alcoholic beverage marker, La Colombe Coffee.
Yet after passing $100 million in sales in its first year, ZOA has since contracted; sales declined 6.1% to around $61 million (Total US – Multi-Outlet+ with convenience) in the 52 weeks ending Sept. 6, according to data from Circana.
Over the years the core line has been and reformulated to up the caffeine and cut sugar (along with a move from 16 oz. to 12 oz. cans), and a second line of RTDs and powders, called ZOA+, arrived in 2022.
Still, Molson its initial stake in the brand last year and is in a major ad campaign unveiled in February. Molson Coors and La Colombe to end their contract last March; the coffee brand has since aligned with Keurig Dr Pepper. During Molson Coors’ distributor summit in September, the company said its goal is to sample 1 million cans of ZOA in 2025.
The company also announced a “ ” with Naked Life, an Australia-based, non-alcoholic ready-to-drink cocktail line as part of its premiumization strategy..
