Molson Coors invests US$65m in Texas facility to bring hard seltzer production in-house

US – Molson Coors, an American multinational drink and brewing company, has announced an investment of US$65 million in a new warehouse in Fort Worth, Texas, for variety packs as part of the company’s plan to bring more hard seltzer production in-house.

The company said in a statement that the construction which started in May is expected to be completed later this year.

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It added that the roughly 200,000-square-foot warehouse is expected to enhance the brewery’s ability to do everything from storing, packaging, shipping, and logistics for various offerings.

The producer of Topo Chico Hard Seltzer and Vizzy added that the investment is expected to allow the Fort Worth brewery to remove third-party vendors used for final pack assembly.

Molson Coors noted that keeping packaging in-house will save money and enable it to get its products to market faster, which is an especially valuable attribute in today’s rapidly evolving environment.

The expansion will further allow hard seltzer that has already been produced and canned at Fort Worth to go directly to the warehouse on campus to be packaged, rather than to a third party to get placed into the variety packs.

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The company aims to also use the new warehouse for future brands which will be developed as part of its ambition to expand its portfolio beyond the beer aisle.

The Fort Worth plant is the latest investment by Molson Coors to grow its presence in the category after investing in capital projects to expand its U.S. hard seltzer production capacity by about 400%, in 2020.

Last year, Molson Coors quadrupled its Canadian hard seltzer production and invested another $35 million in the U.K. to make a range of upgrades, including adding its first hard seltzer canning line.

Despite businesses struggling with elevated transportation costs and inflation, companies like Molson Coors are looking for ways to cut expenses while having more control over the products they make.

In May, CEO Gavin Hattersley told an executive panel that Molson Coors doubled its market share in the hard seltzer category during 2021 to 5.7%.

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The company said it is not losing momentum but striving to continue to gain share this year amid challenges facing some hard seltzer producers.

The strong demand has moved it to No. 4 in the category from seventh in 2022 and is predicted to pass Bud Light Seltzer into the third spot as soon as this year.

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