DENVER and NEW DELHI, India — Molson Coors Brewing Company (NYSE: TAP; TSX: TPX) announced today that its wholly owned subsidiary, Coors Brewing Company d/b/a Molson Coors International (MCI), has acquired Mount Shivalik Breweries Ltd. (MSBL). As part of the transaction, MCI acquired MSBL’s entire brand portfolio, including the leading strong beer brand, Thunderbolt, and assumes direct control over brewing operations in Haryana and Punjab, as well as distribution for Thunderbolt in Bihar. Terms of the transaction were not disclosed and all required regulatory approvals have been received. The entity will continue to be called Mount Shivalik Breweries for a period of time.
This transaction builds on an existing contract brewing and distribution partnership between the two companies that was initiated in early 2013.
“We are very pleased to be deepening our partnership with Mount Shivalik, which has always been based on shared values and business ambitions,” said Kandy Anand, President and CEO of MCI. “The Bali family has run a very successful business over the last 40 years powered by a strong brand portfolio and dedicated employees. This transaction allows us to build an even stronger foundation on which to expand that proud tradition. With our combined resources, brewing expertise, brand portfolio and a focus on quality and innovation, we are confident that MSBL’s reputation for delighting India’s beer drinkers will only grow going forward.”
Anand continued, “With the added brewing capacity, increased distribution channels, as well as the passion and skill of MSBL employees, we believe the strategic benefits of this transaction are abundant and clear. We are also very excited about the increased momentum the addition of Thunderbolt will bring to Molson Coors brand portfolio as we build our business in India, the world’s fastest growing beer market.
Mr. Rajiv Bali, Chairman Emeritus of MSBL, added, “We are fortunate to have a strong partner in Molson Coors, a leading global brewer with a proven track record for building and growing iconic brands around the world. At Mount Shivalik, we are also proud of our reputation for delivering high quality beer brands. Together with Molson Coors, we will have a powerful combination of industry leading brewing expertise, brand reach and operational efficiency that will allow us to grow our brands even further in India.”
“We are excited about the opportunities this partnership will bring for Molson Coors India. It is in line with our strategy to grow our regional brand portfolio,” said Mr. Ravi Kaza, President Molson Coors Cobra India.
Molson Coors entered India in June 2011, when the company purchased a controlling stake of Cobra India, thereby creating the joint venture Molson Coors Cobra India. Molson Coors Cobra maintains one brewery in Bihar, where it has secured a strong share position through the strength of its brand portfolio led by Iceberg 9000, King Cobra, Royal Brew and now ThunderBolt. In early 2013, Molson Coors Cobra and MSBL entered into a contract brewing and distribution agreement whereby each party would brew and distribute each other’s brands in their respective markets. Mount Shivalik Brewing Ltd. maintains brewing operations in Punjab and Haryana with combined brewing capacity of 600K hectolitres and has a strong brand presence across a number of northern states in India, including Punjab, Haryana, Jharkhand, Bengal and UP.
MSBL will be headquartered in Chandigarh and operate as a separate entity from Molson Coors Cobra with a separate governing board. The MSBL leadership team will be led by Ravi Kaza.
About Molson Coors Brewing Company:
Molson Coors Brewing Company is a leading global brewer delivering extraordinary brands that delight the world’s beer drinkers. It brews, markets and sells a portfolio of leading premium brands such as Coors Light, Molson Canadian, Carling, Staropramen and Blue Moon across The Americas, Europe and Asia. It operates inCanada through Molson Coors Canada; in the US through MillerCoors; across Europe through Molson Coors Europe; and outside these core markets through Molson Coors International. The company has been listed on the Dow Jones Sustainability World Index for the past four years and was named global Beverage Sector Leader in 2012 and 2013. Molson Coors is constantly looking for ways to improve its Beer Print. For more information on Molson Coors Brewing Company visit the company’s Web site, http://molsoncoors.com
Mount Shivalik Breweries Ltd.
Established in 1972 and promoted by the Bali family, the MSBL is a significant player in the strong beer segment in India. MSBL is a pioneer in the brewery business in India and was the first in the country to launch a strong beer in 1984 under the brand name Thunderbolt. Thunderbolt has significant brand recall in the strong beer segment in India with market leading positions in Punjab, Haryana and Chandigarh. The brand has been recognised internationally for its quality. MSBL has two breweries – one in Haryana with a capacity of 0.25 million HL and the other one at Bankarpur, Punjab with a capacity of 0.35 million HL. In 2010, the company launched canned beer after a can packing facility with capacity of 21,000 cans per hour was set up in Bankarpur Brewery in Punjab.
This press release includes estimates or projections that constitute “forward-looking statements” within the meaning of the U.S. federal securities laws. Generally, the words “believe,” expect,” intend,” anticipate,” “project,” “will,” and similar expressions identify forward-looking statements, which generally are not historic in nature. Although Molson Coors Brewing Company (“MCBC”) believes that the assumptions upon which its forward-looking statements are based are reasonable, it can give no assurance that these assumptions will prove to be correct. Important factors that could cause actual results to differ materially from MCBC’s historical experience, and present projections and expectations are disclosed in MCBC’s filings with the Securities and Exchange Commission (“SEC”). These factors include, among others, our ability to successfully integrate MSBL into our existing operations in India, retain key employees and achieve planned cost synergies; availability or increase in the cost of packaging materials; our ability to maintain key supply agreements; impact of competitive pricing and product pressures; our ability to implement our strategic initiatives, including executing and realizing cost savings; changes in legal and regulatory requirements; increase in the cost of commodities used in the business; our ability to maintain brand image, reputation and product quality; our ability to maintain good labor relations; changes in our supply chain system; additional impairment charges; the impact of climate change and the availability and quality of water; and other risks discussed in our filings with the SEC, including our Annual Report on Form 10-K for the year-ended December 31, 2013, which are available from the SEC. All forward-looking statements in this press release are expressly qualified by such cautionary statements and by reference to the underlying assumptions. You should not place undue reliance on forward-looking statements, which speak only as of the date they are made. We do not undertake to update forward-looking statements, whether as a result of new information, future events or otherwise.