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Brewer Molson Coors Adds to Spirits Division With Acquisition of Blue Run Spirits
Chicago-headquartered Molson Coors, a Canadian-U.S. publicly listed multinational drinks and brewing company with beer brands including Coors Light and Miller Lite, acquired Blue Run Spirits, a boutique whiskey producer based in Kentucky, United States, on August 8, 2023. The addition of Blue Run marks Molson Coors first spirits company acquisition. Blue Run joins the newly established Coors Spirits Co., an expansion of Molson Coors’ existing spirits business, whose two brands are Barmen 1873 Bourbon and Five Trail Whiskey.
Transaction Summary
Our Take on the Acquisition
Molson Coors (acquirer) acquired Blue Run Spirits (target) to expand its own spirits portfolio in the United States. Blue Run Spirits is a relatively new company and in March 2023 announced plans to build and open a 35,000 square-foot distillery and a 20,000 square-foot rick house, a warehouse for storing barrels of aging whiskey. Molson Coors may have acquired Blue Run for both its high-end brand and its distillery.
The Facts of the Acquisition
- Target: Blue Run Spirits, based in Kentucky, produces rye and bourbon whiskeys. Founded in 2019, its products are available from retailers in 31 states; from bars, breweries, restaurants, and the like in every region; and online. Prices range from USD $100 to USD $250 a bottle.
- Acquirer: Molson Coors is a publicly listed multinational beverages company. It is the world’s fifth-largest brewer by revenue and produces 125 brands of beer, including Coors Light, Miller Lite, Molson, Carling, Foster’s, and Peroni. Though known for beer, its portfolio includes cider, energy drinks, bottled spirits, ready-to-drink cocktails, and more. It entered the whiskey category in 2021 with its own brand Five Trail Whiskey.
The Transaction
| Date: | August 8, 2023 |
| Price: | Undisclosed |
| Purpose: | To expand Molson Coors’ spirits portfolio |
| Acquirer’s Statement: | Michelle St. Jacques, chief commercial officer at Molson Coors – “Molson Coors has been on a journey to broaden beyond our beer roots and build powerful brands in growing categories, and Blue Run joining us is an exciting next step as we establish Coors Spirits Co.. Blue Run has accomplished in three years what many brands hope to do in a generation and has done it at the luxury end of the whiskey category. Importantly, we are committed to maintaining Blue Run’s well-known quality, design, and innovation as we continue to grow our spirits portfolio.” |
Target/Seller: Blue Run Spirits
Company Information
| Target: | Blue Run Spirits |
| Website: | bluerunspirits.com |
| Founded: | 2019 |
| Industry: | Alcoholic Beverages – Distillery |
| Type: | Private |
| Employees: | 19 (Self-published on LinkedIn) |
| Locations: | Head Office and Distillery: Georgetown, Kentucky, United States |
Product Information
| Products: | Bourbon – Barrel-aged American whiskey made from corn |
| Market Reach: | Ireland United Kingdom |
Financial Information
| Revenue: | Up to USD $5.0 million (Unconfirmed source: ZoomInfo) |
| Revenue per Employee: | Up to USD $263,158 (i.e., USD $5.0 million / 19 employees = USD $263,158 – estimated based on the self-published number of employees and the revenue from ZoomInfo) |
Did You Know?
Bourbon is synonymous with Kentucky because the state’s warm summers and cold winters are an ideal climate for the whiskey to age, or mature. Kentucky also has a lot of limestone, which filters out impurities in the water used to make the whiskey. This gives a smoother, more consistent flavor. So, most bourbon distilleries are in Kentucky, though there are others across the United States. There are 2,000 distilleries in the country.
Target/Seller Overview: Blue Run Spirits
Blue Run Spirits makes rye whiskey and limited-release (available for a limited time only), premium bourbon whiskey. Blue Run specializes in whiskeys that have subtle, enhanced flavors and a smooth finish, offering consumers a refreshing drinking experience. The company’s founders are a philanthropist, a political advisor, a Nike designer, a Facebook executive, and a hospitality executive. Inspired by the tennis shoe industry’s use of new releases, Blue Run says it is “sneakerizing the bourbon industry” – that is, applying the principle of creating hype around its products before each new release.
The company was founded in 2019 and is based in Georgetown, Kentucky.
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Explore Your Options NowBuyer/Acquirer: Molson Coors Beverage Company
Company Information
| Buyer: | Molson Coors Beverage Company |
| Website: | molsoncoors.com |
| Founded: | 1786 |
| Industry: | Beverages |
| Type: | Publicly listed company |
| Employees: | 16,600 (Source: Pitchbook) |
| Locations: | Head Office: 250 S Wacker Dr, Chicago, Illinois, United States Canada Regional Office #1: 1555 Rue Notre-Dame E., Montreal, Quebec, Canada Regional Office #2: 33 Carlingview Drive, Toronto, Ontario, Canada United Kingdom Regional Office #3: 137 High Street, Burton-upon-Trent, Staffordshire, United Kingdom United States Regional Office #4: 3939 W Highland Blvd, Milwaukee, Wisconsin, United States |
Product Information
| Products: | Ale – Beer brewed using a warm fermentation method, resulting in a sweet, full-bodied and fruity taste Bourbon – Barrel-aged American whiskey made from corn Beer – Traditional malt-flavored alcoholic drink made in small batches through yeast fermentation IPA – Pale ale with the addition of hops (flower) and malt Lager – Beer brewed at low temperature, which results in crisp, clean flavors Pilsner – Bright, golden color, moderately bitter with a distinct aroma, brewed with malt and hops Hard Seltzer – Seltzer, or carbonated water, mixed with alcohol and fruit flavoring Spritzer – White wine mixed with carbonated or sparkling water Whiskey – A spirit distilled from malted grain |
| Brands Include: | Beers Carling Cobra Foster’s Grolsch Molson Peroni Sol Cerveza Cocktails Bellini Spritz Margarita Spritz Mimosa Spritz Sangria Spritz Paloma Spritz Ciders Aspall Imperial Rekorderlig Tepacho Energy Drinks Zoa Spirits Barmen 1873 Bourbon Five Trail Whiskey |
| Market Reach: | Africa: South Africa Asia: Bahrain, Hong Kong, India, Iraq, Israel, Japan, Singapore, South Korea, UAE, Vietnam Australia: Australia Europe: Bosnia, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Norway, Poland, Portugal, Romania, Serbia, Slovakia, Spain, Sweden, Switzerland, Turkey, Ukraine, United Kingdom North America: Canada, United States Central America: Honduras Latin America: Aruba, Bahamas, Bermuda, Costa Rica, Dominican Republic, El Salvador, Mexico, Panama, Puerto Rico, St. Martin, Cayman, Turks and Caico, South America: Argentina, Belize, Chile, Columbia, Paraguay, Trinidad, Uruguay |
Financial Information
| Market Cap: | USD $14 billion |
| Revenue: | USD $10.7 billion |
| Revenue per Employee: | USD $644,578 (i.e., USD $10.7 billion / 16,600 employees = USD $644,578 – estimated based on the number of employees and revenue from Pitchbook) |
| EBITDA: | USD $868.6 million |
| P/E Ratio: | 341 |
| EV/EBITDA Ratio: | 20.2 |
Did You Know?
In 1964, the U.S. Congress designated bourbon whiskey as a distinctive product of the United States, meaning whiskey labeled bourbon must be made in the United States. The congressional resolution described bourbon as “a distinctive product of the United States that is unlike other types of alcoholic beverages, whether foreign or domestic.” It must be made from a fermented mash – cooked grains mixed with yeast – of at least 51% corn, aged in a new charred oak barrel, and bottled at 80 proof or higher. Proof takes the percent of alcohol by volume, or ABV, and doubles it. In other words, 40% ABV is 80 proof.
Buyer/Acquirer Overview: Molson Coors Beverage Company
Molson Coors is a Canadian-U.S. multinational drinks and brewing company headquartered in Chicago, Illinois, with main offices in Golden, Colorado, in the United States, and Montreal, Quebec in Canada. It was formed in 2005 through the merger of Molson of Canada and Coors of the United States. Publicly listed on the New York Stock Exchange and the Toronto Stock Exchange, it is the fifth-largest brewer in the world by revenue.
Partial List Previous Acquisitions by Molson Coors Beverage Company
- Molson Coors Si’hai Brewing Company (2023) – A China-based joint venture with Si’hai Group. Molson Coors bought a 51% controlling interest for USD $40 million
- Atwater Brewery (2020) – A beer producer based in Michigan, United States
- Hop Stuff Brewery (2019) – A independent brewery in London, United Kingdom
- Aspall Cyder (2018) – A cider maker based in Suffolk, East Anglia, United Kingdom
- Clearly Kombucha (2018) – A non-alcoholic beverage brand based in California, United States
- MillerCoors (2016) – A beer brand based in Chicago, Illinois, United States
- Starbev Netherlands (2012) – An eastern European beer maker based in the Netherlands
- Sharp’s Brewery (2011) – A brewery based in Cornwall, United Kingdom
Sources
- Company Profile
- Other Sources
- Unconfirmed Sources
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