Shares of Molson Coors Brewing Company TAP hit a 52-week high of $79.18 on Apr 9, following the acquisition of India-based Mount Shivalik Breweries Ltd. Shares of Molson Coors eventually closed at $77.92 on the day.
Acquisition of Mount Shivalik
On Apr 1, Molson Coors, through its subsidiary Molson Coors International (‘MCI’), acquired India-based Mount Shivalik Breweries Ltd. in order to expand its presence in one of the populous and fast growing beer markets of the world.
Mount Shivalik Breweries is a popular name in the strong beer market in India and owns a popular brand Thunderbolt.
Molson Coors has acquired Mount Shivalik’s entire brand portfolio, including the Thunderbolt beer brand. Mount Shivalik owns brewing operations in the states of Punjab and Haryana and has a strong brand presence across a number of other northern states in India, including Jharkhand, Bengal and Uttar Pradesh. Molson Coors has also acquired distribution rights for Thunderbolt in Bihar.
Molson Coors has a strong foothold internationally and has made international acquisitions in the past to expand its portfolio in new and emerging markets. The acquisition of Mount Shivalik Breweries will create new opportunities for Molson Coors and help it to introduce its brands in India. The addition of Thunderbolt will also boost the company’s beer portfolio. On the other hand, Mount Shivalik Breweries, through the partnership, will get industry leading brewing expertise, brand reach and operational efficiency to grow its brands even further in India.
Molson Coors holds a Zacks Rank #5 (Strong Sell).
Some better-ranked players in the beverage industry include Monster Beverage Corporation MNST and Cott Corporation COT. While Monster Beverage sports a Zacks Rank #1 (Strong Buy), Cott Corp. holds a Zacks Rank #2 (Buy). Another stock in the wider consumer staple sector worth considering is Supervalu Inc SVU with a Zacks Rank #1.
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