Molson Coors Beverage Company is acquiring a majority ownership stake in ZOA Energy, co-founded by Dwayne 'The Rock' Johnson, Dany Garcia, Dave Rienzi and John Shulman.
The acquisition of a majority stake in ZOA Energy will see Molson Coors lead its marketing, retail and direct-to-consumer sales and development.
The sales of better-for-you energy drinks continue to outpace the broader category, the company noted.
The company previously implemented various initiatives, including new packaging, visual identity and ZOA Energy’s first national marketing campaign featuring Dwayne Johnson.
Johnson will continue representing the brand through the 'Big Dwayne Energy' campaign, social media amplification, and other initiatives.
'Next Phase Of Growth'
Johnson commented, “Since day one, Molson Coors has shared our passion for ZOA Energy, and as a partner, they’ve been pivotal to bringing new consumers into the energy space with ZOA and keeping them coming back.”
“ZOA is all about crafting drinks that help our loyal and growing consumers show up as their best selves every day, and Molson Coors’ commitment to the brand will give it an enormous amount of firepower in the next phase of growth.”
The repeat purchase rate for ZOA Energy's products stands at around 50%, while new consumers comprise around 30%.
The brand’s direct-to-consumer business is also a significant driver of sales and consumer visibility, including the brand’s position as a top 10 energy drink brand on Amazon, Molson Coors noted.
'A Winning Portfolio'
Molson Coors' chief commercial officer Michelle St Jacques stated, “We’re building a winning portfolio that offers consumers choices across a wide range of occasions, and non-alcoholic is a key part of that strategy.”
“ZOA opens the door for us to participate in more parts of the day and incremental opportunities beyond our core business. We’ve built a strong foundation with ZOA over the past three years and we see a ton of opportunity for this brand to achieve its next stage of growth and scale.”
ZOA struck a partnership with Molson Coors in 2021 - the same year the brand was launched.
Last September, Molson Coors increased its stake in ZOA Energy while also assuming a presence on the company's board of directors.
Quarterly Results
Molson Coors reaffirmed its guidance for bottom-line growth for full-year 2024, while it narrowed top-line guidance due to macroeconomic challenges in the US.
The brewer's third quarter net sales declined 7.8% and income before taxes decreased 39.1%.
Tracey Joubert, chief financial officer of Molson Coors, stated, "While the US shipment timing and exit of contract brewing volume will continue to impact us in the fourth quarter, these near-term headwinds do not diminish our confidence in our long-term growth algorithm."
