Beer News: Molson Coors Takes Stake In Emerging Beverage Maker

After dropping Brewing Co. from its name, Molson Coors Monday made good on its pledge to diversify, buying a stake in L.A. Libations to attract young people not interested in alcohol.

L.A. Libations, which describes itself as a next-generation beverage incubator, announced the multiyear deal on its website that makes Molson Coors a 49% stakeholder and give it two seats on the L.A. Libations board. In exchange, the world’s seventh-largest brewer will make a “significant equity investment.” Financial terms were not disclosed.

L.A. Libations specializes in seeking out next-generation beverages for health-conscious consumers. It also partners with brands to provide retail sales and in-store services.

The deal will augment Molson Coor’s inventory with high-end, healthier beverages, and is the first since Molson Coor’s announced it would lay off hundreds of staff in a push to remake itself. The two companies have been working together in the past year on expanding the Clearly Kombucha brand.

Pete Marino, president of emerging growth for Molson Coors, told the Wall Street Journal that L.A. Libations is “on the leading and bleeding edge of where beverages are going.” Molson Coors will be able to purchase brands in full or just take stakes in them.

“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," Marino said in a press release.

"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’ co-founder and CEO Danny Stepper said the two companies “intend to jointly become a major player in the nonalcohol space.”

L.A. Libations was founded in 2009 and says it advises some of the nation’s largest beverage retailers, providing services for such established brands as Zico Coconut Water and Core Water, as well as emerging brands like Space Shake, Limitless and Well Well. It also has created brands like Gloe and Arriba Chelada. Among new brands in the pipeline are CBD infused drinks.