Molson Coors to Invest £35 Million in Indian Joint Venture
Global brewer Molson Coors has formed a joint venture with Cobra India to brew and market Cobra beer in South Asia. Molson Coors will purchase a controlling stake in Cobra India from two existing investors and will have operational control over the new Molson Coors Cobra India.
The joint venture will be chaired by Lord Karan Bilimoria, Cobra’s founder and chairman of the Cobra Beer Partnership in the UK. Molson Coors will also be investing additional capital in Molson Coors Cobra India to meet the working capital requirements and the future expansion plans of the brewery operations. The total investment by Molson Coors is approximately $35 million.
“This deal marks the beginning of a long-term commitment to establish Molson Coors in India, the world’s fastest growing beer market,” says Kandy Anand, president of Molson Coors International. “Our ambition is to build this compelling brand and grow the business to a meaningful market share as part of Molson Coors International’s strategy to achieve critical mass in high-growth emerging markets.”
Peter Swinburn, president and chief executive of Molson Coors.
Peter Swinburn, president and chief executive of Molson Coors, comments: “Our joint venture in India is an exciting opportunity for us to expand our footprint in Asia and represents the next major milestone in executing our global growth strategy. Over the past year, we have entered several new markets and I believe we are now in a much stronger position to leverage our experience and accelerate our international growth trajectory over the next few years.”
The capacity of the Indian brewing industry in year ending March 2011 was just under 27 million hl and it has a per capita consumption of just under 1.5 litres. The Indian beer market is growing at 12% CAGR and is estimated to grow to 50 million hl by 2020, putting it in the top 10 beer markets globally.
The deal with Cobra India includes land, a 175,000 hl brewery in Bihar state, with potential to expand to 500,000hl, and a beer portfolio consisting of Cobra Premium, King Cobra Superior and Iceberg 9000.
In 2009, Molson Coors UK and Cobra Beer established a similar joint venture, the Cobra Beer Partnership, which secured world rights for the iconic beer outside of South Asia.
