Molson Coors invests US$82m in expanding its Canadian hard seltzer production capacity

CANADA – Molson Coors Beverage Company has said that it is investing CAD 100 million ($82.4 million approx.) in its Canadian hard seltzer business, in a move that will increase production capacity by 300%.

The US based multinational drink and brewing company introduced hard seltzers in Canada in March and claims that the launch “is off to an incredibly strong start”.

As well as increasing hard seltzer production capacity in its Canadian operations by 300%, the maker of Coors and Vizzy hard seltzer says the investment will also help to balance production in the country between owned facilities and trusted third parties.

The company’s Toronto brewery will be a major beneficiary of the investment and Molson Coors expects to be producing Vizzy and Coors Seltzer in-house at the facility as early as winter next year.

A portion of the CAD 100 million investment will also be used to upgrade technical fermentation and packaging systems.

In addition, Molson Coors plans to install new filtration technologies and a new can line, flavour laboratory and blender in the Toronto brewery for packaging seltzers and other beverages.

Hard Seltzers which are  blend of carbonated water, alcohol, and fruit flavoring contain about 100 calories and 2 grams of carbohydrates per 12 ounce can, have risen in popularity in the recent decade as consumer tastes shift away from alcohol.

The global hard seltzer market size was valued at USD 4.4 billion in 2019 and is expected to grow at a compound annual growth rate (CAGR) of 16.2% from 2020 to 2027, according to Grand Review Research.

Rising demand for drinks that are gluten-free and low ABV content in the developed economies including the U.S., Australia, and South Korea, has created a great opportunity for the market.

A major reason behind the increasing adoption of hard seltzer is the reduced content of calories and carbohydrates in comparison to beers and other mixed drinks.

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“Hard seltzers are fairly new in Canada, but Vizzy and Coors Seltzer have already proven to be hits,” said Frederic Landtmeters, president of Molson Coors in Canada.

“Quadrupling our production capacity will allow us to make a lot more of our highly sought-after hard seltzers and better equip us to meet consumer demand well into the future.”

Last year, Molson Coors increased production capacity for its Vizzy, Coors Seltzer and Blue Moon LightSky products by more than 400% at its Fort Worth and Milwaukee breweries, and the company claims that its share of the country’s hard seltzer segment doubled in 2020.

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