Good Drinks adds Molson Coors to portfolio

Good Drinks Australia has picked up another of Coca-Cola Europacific Partners’ former distributions deals, signing a contract to represent Molson Coors’ brands in Australia.

The deal means the ASX-listed beverage company will exclusively distribute Miller Chill, Miller Genuine Draught, Coors and Molson Canadian nationally, which represent about 15 million litres annually.

According to a statement to the ASX this morning, Good Drinks expected the contract would add about $35 million to $40 million to its revenue, and $3 million to $4 million to its earnings, based on volumes sold over the last 12 months.

It said the deal would not impact on its production capacity, with some Molson Coors brands manufactured by Coopers Premium Beverages and others imported.

However, it said the initial on-boarding of inventory and terms of trade would require additional working capital, which would be funded by an extension of its existing working capital facility.

Molson Coors, which sells its products in more than 100 countries and is listed on the New York and Canadian stock exchanges, was previously distributed by Coca-Cola Europacific, before it announced it was leaving the beer and cider industry in Australia and its contract with the Northern American beverage company would not be renewed.

The new distribution deal is the second former Coca-Cola Europacific Partners’ contract Good Drinks Australia has signed, after it became the distributor of Magners Original Irish Cider brands in Australia in March.

Good Drinks said the partnership was aligned with its goals to develop its sales and marketing teams to become a leading independent supplier and support brands that drive incremental margin growth.

Good Drinks Australia managing director John Hoedemaker said the partnership was a game changer for the business.

“Molson Coors has a strong and vibrant brand portfolio with a significant following in Australia, a deep history in the USA and is a truly global business,” Mr Hoedemaker told the ASX.  

Molson Coors Asia Pacific regional director Shaun Morton said Good Drinks’ local market expertise and nationwide distribution coverage provided an excellent platform to develop their portfolio.

Good Drinks Australia’s share price was up 4 per cent to 78 cents at 9:45am AWST.