Expanding its reach beyond beer, Molson Coors has taken a majority ownership stake in Zoa, the energy brand founded by Dwayne “The Rock” Johnson. The financial details of the transaction were not disclosed.
This acquisition grants Molson Coors influence over Zoa’s marketing, direct-to-consumer sales, and development strategies.
Having initially entered into a distribution agreement with Zoa in 2021, Molson Coors increased its investment in the zero-sugar energy drink brand last year. The decision to purchase a majority stake underscores the growth potential that Molson Coors sees in the brand, citing a 50% repeat purchase rate among consumers and 30% of its consumers being new to the category.
Molson Coors’ Chief Commercial Officer, Michelle St. Jacques, highlighted the company’s strategy to offer consumers a diverse range of choices throughout the day with products outside their traditional beer offerings. She expressed optimism about Zoa’s future growth and scalability.
Zoa is currently available in over 25,000 retail stores in the U.S., boasting a health-conscious image with electrolytes, amino acids, and antioxidants in its beverages. The brand’s lineup includes flavors like Pineapple Coconut, Super Berry, White Peach, and Cherry Limeade.
The energy drink sector, driven by popular brands such as Celsius and Ghost, is experiencing rapid growth as consumers seek caffeine boosts throughout the day. According to Straits Research, the energy drink market is projected to reach $205 billion by 2032, with an annual growth rate of 8.5%.
Under the leadership of CEO Gavin Hattersley, Molson Coors has been actively expanding its Beyond Beer portfolio in response to the long-term decline in beer consumption. The company is diversifying its revenue streams with offerings ranging from hard coffee to nonalcoholic cocktails.