Molson Coors and Yuengling form US joint venture

Brewers Molson Coors and Yuengling have formed a joint venture to expand distribution of Yuengling’s portfolio in the US.

The deal will see Molson Coors brew and package Yuengling beers and distribute them into new markets, mainly in the western side of the US.

The aim is to expand Yuengling’s existing 22-state footprint and also open up the possibility of entry into the New England market.

Yuengling, which claims to be the oldest brewery in operation in America, is based in Pottsville, Pennsylvania. It has two breweries in its home state as well as one in Tampa, Florida.

The new partnership will be formalised in the second half of next year and will be run by a board of six directors, with even representation from both companies.

Yuengling has stated that it will continue to be a family-owned business and the joint venture will operate separately from the existing company.

Gavin Hattersley, president and chief executive officer at Molson Coors, said: “Yuengling’s iconic beers are beloved by those who live in a state fortunate enough to have their brands and desired by those who are visiting. More than a few people have smuggled Yuengling across state lines in the trunk of their car. But soon, millions of fans won’t have to resort to such tactics.

“This is a huge growth opportunity for Yuengling, it’s a huge growth opportunity for Molson Coors, and we’re going to make a whole lot of Yuengling fans out west really happy.”

Yuengling, which was founded in 1829, will retain the rights and trademarks to its beer range, which includes flagship products such as the Yuengling Traditional Lager and Black & Tan as well as its new light beer, Flight.

Wendy Yuengling, chief administrative officer at Yuengling, added: “We are excited to launch this brewing partnership with the team at Molson Coors. Like Yuengling, Molson Coors has an established commitment to quality and rich history of family brewing excellence.

“This partnership is a great opportunity for us to grow our distribution footprint for the long-term, while continuing to support our existing markets and the communities in which we operate.”

This year, Molson Coors has already announced plans to boost production of its hard seltzer range which includes Henry’s Hard Sparkling Water and Vizzy. Last month it signed a joint venture with cannabis company Hexo Corp to produce a line of cannabis-based non-alcoholic drinks in Canada under the brand name Truss Beverage Co.

In November 2019, it also announced that it had acquired a minority stake in California-based L.A. Libations, a company which specialises in identifying emerging non-alcoholic drinks brands and helping them to expand.