Molson Coors enters distribution partnership with Australian craft beer company Good Drinks

AUSTRALIA – Good Drinks Australia (GDA), an Australian craft brewery, has announced a new distribution deal with Molson Coors that is going to revolutionize its operations.

As per the agreement, Good Drinks, owner of Gage Roads Brew Co., will exclusively represent the Miller Chill, Miller Genuine Draught, Coors, and Molson Canadian brands in Australia.

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The collective brands will approximately amount to 15 million liters per annum and are expected to be material volume and earnings drivers for the Australian company.

The brands also broaden Good Drinks’ product portfolio giving it access to a significant premium international beer category of the alcohol market without competing directly with its existing brands.

This partnership will also help it develop a greater east coast market share, both of which were identified as part of its wider strategy.

Molson Coors APAC regional director Shaun Morton said: “Australia is a priority market for Molson Coors and as such, GDA’s local market expertise and nationwide distribution coverage provide an excellent platform from which to develop our portfolio.”

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Initial onboarding of inventory and terms of trade will be funded via an extension of the company’s working capital facility.

In reference to the current volumes sold over the last 12 months and the retail pricing of these brands, Good Drinks anticipates the agreement, and commercial partnership to raise an additional US$ 24.78 million -US$ 28.32 million in revenue and up to $ 2.83 million EBITDA.

Some of the Molson Coors’ brands will be manufactured by Coopers Brewery, the largest Australian-owned brewery, famous for Pale Ale and Sparkling Ale brands while others will be imported.

Following the move by Molson Coors, Good Drinks’ production goals including moving away from contract brewing will be unaffected.

Molson Coors brands were previously distributed under an agreement with a Coca-Cola EuroPacific Partners company (CCEP).

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The CCEP announced late last year that it would not renew its deal with Molson Coors after the first half of 2022, this is after it decided to exit the beer space in Australia at the end of last year.

Good Drinks was able to acquire another former Coca-Cola brand, Magners Cider in March to be able to further diversify its portfolio.

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