This audio is generated automatically. Please let me know if you have any comments.
Liquor giant Molson Coors is continuing its quest to conquer the beverage market beyond beer by purchasing a majority stake in Zoa, the energy brand created by Dwayne “The Rock” Johnson. Financial terms of the deal were not disclosed.
The deal allows Molson Coors to join Zoa’s operations and take control of the brand’s marketing, direct-to-consumer and development strategies.
Molson Coors increased its investment in the sugar-free energy drink brand last year after first signing a distribution deal with Zoa in 2021. The majority stake purchase represents growth potential for the brand, the Coors Light manufacturer said in a press release. Zoa’s consumer repeat purchase rate is 50%, and 30% of the brand’s consumers are new to the category.
Michelle St., chief commercial officer of Molson Coors. Jacques said in a statement that the purchase will allow the beverage giant to compete at more times of the day with products outside its traditional wheelhouse.
St. “We are building a successful portfolio that offers consumers choice across a variety of occasions, and alcohol-free content is a key part of that strategy,” said Jacques. “We have built a strong foundation with ZOA over the past three years and see numerous opportunities for the brand to achieve the next level of growth and scale.”
Zoa is sold in more than 25,000 retail stores across the United States. The brand promotes the drink’s health halo, containing electrolytes, amino acids and antioxidants. Its flavors include Pineapple Coconut, Super Berry, White Peach, and Cherry Lime.
Energy drinks, fueled by popular brands like Celsius and Ghost, are growing rapidly as consumers look for a caffeine boost throughout the day. According to Straits Research, the sector is expected to be worth $205 billion by 2032, growing at a CAGR of 8.5%.
Under CEO Gavin Hattersley, Molson Coors has worked to grow its Beyond Beer portfolio in recent years, seeking to diversify its revenue streams with products ranging from hard coffee to mocktails as beer faces a long-term decline.
