Molson Coors, known for its popular beer brands like Coors Light, has boldly expanded beyond beer by acquiring a majority stake in ZOA, the energy drink brand co-founded by Dwayne “The Rock” Johnson.
This acquisition signifies Molson Coors’ commitment to tapping into the rapidly growing non-alcoholic beverage market, particularly in energy drinks.
Though the deal’s financial details weren’t disclosed, the investment marks a significant step in Molson Coors’ journey to build a diverse beverage portfolio that includes a range of drinks for various occasions.
A Strategic Move to Diversify
Molson Coors initially partnered with ZOA in 2021 through a distribution agreement and later increased its investment in the zero-sugar energy drink brand. The latest acquisition grants Molson Coors a major role in ZOA’s operations, including marketing, direct-to-consumer sales, and development strategies.
With this majority stake, Molson Coors is poised to bring its experience in the beverage industry to drive ZOA’s growth.
The decision to acquire ZOA stems from promising consumer trends: ZOA boasts a 50% repeat purchase rate, indicating strong brand loyalty, and has attracted 30% of its consumers outside the traditional energy drink audience.
This broad appeal aligns with Molson Coors’ strategy of expanding its non-alcoholic beverage offerings to reach a wider range of consumers.
Building a Winning Portfolio in Non-Alcoholic Beverages
Michelle St. Jacques, Molson Coors’ Chief Commercial Officer, emphasized the importance of non-alcoholic beverages in the company’s strategy. “We’re building a winning portfolio that offers consumers choices across a wide range of occasions, and non-alc is a key part of that strategy,” St. Jacques said.
She added that the company has established a solid foundation with ZOA over the past three years and sees immense potential for the brand’s future growth and market expansion.
ZOA Health-Focused Energy for Active Consumers
ZOA energy drinks stand out for their “health halo” ingredients, which appeal to health-conscious consumers. Each can contain electrolytes, amino acids, antioxidants, and zero sugar.
Flavors like Pineapple Coconut, superberry, White Peach, and Cherry Limeade cater to diverse tastes, helping the brand capture a broad audience in a competitive market.
With ZOA available in over 25,000 retail stores across the United States, Molson Coors plans to leverage its distribution network to expand its reach even further.
The company aims to strengthen ZOA’s presence in the market and position it alongside leading brands like Celsius and Ghost, which have also gained popularity among consumers looking for caffeine boosts throughout the day.
The Energy Drink Market Rapid Growth and High Demand
Energy drinks are in high demand as more consumers turn to caffeine-based beverages for an extra boost during their day. The global energy drink market is expected to grow significantly, with Straits Research predicting it will reach $205 billion by 2032, driven by a compound annual growth rate (CAGR) of 8.5%.
Molson Coors is betting on this trend as it moves away from relying solely on beer, which has seen slower growth in recent years. Under the leadership of CEO Gavin Hattersley, the company has broadened its portfolio with products like hard coffee, non-alcoholic cocktails, and now, ZOA energy drinks.
This diverse range of offerings reflects Molson Coors’ dedication to innovation and adapting to changing consumer preferences.
Conclusion
With the majority stake acquisition in ZOA, Molson Coors is well-positioned to capitalize on the rapidly growing energy drink market. The company’s focus on health-conscious products and commitment to innovation underscores its adaptability and foresight.
This partnership with ZOA not only brings a new energy drink to Molson Coors’ portfolio but also marks a strategic shift toward meeting the evolving demands of modern consumers.
The company is prepared to support ZOA’s growth journey, bringing its expertise and resources to a brand that resonates with health-focused, active individuals looking for energy boosts throughout the day.
Molson Coors is paving the way for a diverse and dynamic beverage future by expanding its offerings and investing in high-growth sectors like energy drinks.
FAQs
What is the ZOA energy drink, and who founded it?
ZOA is a health-focused energy drink brand co-founded by Dwayne “The Rock” Johnson. It features zero sugar and health-boosting ingredients like electrolytes, amino acids, and antioxidants.
Why did Molson Coors acquire a majority stake in ZOA?
Molson Coors purchased a majority stake in ZOA to expand its non-alcoholic beverage offerings and diversify its portfolio beyond beer. The company sees strong growth potential in ZOA and the energy drink market.
How popular is ZOA among consumers?
ZOA has a 50% repeat purchase rate, which indicates strong consumer loyalty. Additionally, 30% of its consumers are new to the energy drink category, highlighting its appeal to a broad audience.
Where can I find ZOA energy drinks?
ZOA is available in over 25,000 retail stores across the United States, making it easily accessible to consumers nationwide.
How does this acquisition fit into Molson Coors’ business strategy?
The acquisition is part of Molson Coors’ strategy to diversify its beverage portfolio and enter the non-alcoholic market. By investing in ZOA, Molson Coors aims to compete in more beverage categories and attract a wider consumer base.
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