Molson Coors (TAP) Focuses on Beyond Beer: Stock to Gain?

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Molson Coors Beverage Company TAP has been focused on expanding into adjacent categories through its Beyond Beer approach. The strategy involves looking beyond its core beer portfolio to build powerful brands in fast-growing categories, without hampering the support for its existing large brands. Since its launch, the Beyond Beer strategy has been successful in transforming Molson Coors into a total beverage company, with exposure beyond the beer market.The company’s aspiration to become a total beverage company positions it to draw consumer interest when they are looking for alternatives. This has been the key reason for the success of the Beyond Beer approach.Latest Support to Beyond BeerIn the past two months, Molson Coors took another step forward to expand its Beyond Beer portfolio, with a deal in place to acquire Kentucky-based Blue Run in August and the extension of its agreement with ZOA Energy in September.The company signed an agreement to acquire Blue Run Spirits, a finely crafted bourbon and rye whiskey brand. Blue Run is an award-winning whiskey brand launched in October 2020. This marks Molson Coors’ first acquisition in the spirits category.As part of this buyout, TAP will expand its existing spirits business to form Coors Spirits Co., which will house Blue Run, Five Trail Blended American Whiskey, Barmen 1873 Bourbon and other future products. Prior to this, Molson Coors launched Five Trail Blended American Whiskey in 2021 and Barmen 1873 Bourbon in 2022.On Sep 11, Molson Coors extended its partnership with Dwayne "The Rock" Johnson’s ZOA Energy to strengthen its beyond beer portfolio. It collaborated with the non-alcoholic energy drink brand for the first time in 2019. ZOA is available at more than 42,000 stores and more than 160,000 points of distribution across the United States and Canada.With this expansion, ZOA will increase media and marketing investment to drive sales and expand distribution to the international markets. Per the deal, Molson Coors will continue to be ZOA’s exclusive distribution partner.Other Things to Drive StockThe said acquisition and extension deal not only marks the expansion of the company’s Beyond Beer portfolio, it also highlights its premiumization strategy. The company has been committed to growing its market share through innovation and premiumization. With a view to accelerating portfolio premiumization...

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