TAP's Joint Venture with Cobra

Molson Coors' (DD - Analyst Report) UK division and Cobra Beer formed a joint venture, Cobra Beer Partnership Ltd., that will own, produce and market the Cobra beer brand. The joint venture will own the worldwide rights to Cobra, with the exception of the Indian Sub-Continent, and will be managed by Molson Coors (UK), which holds a 50.1% share of the joint venture.

Lord Karan Bilimoria, the founder of Cobra, will be the chairman of Cobra Beer Partnership Ltd, along with a board primarily consisting Molson Coors executives. Adrian Davey, formerly MD Molson Coors Off-trade, is appointed the Managing Director of Cobra Beer Partnership Ltd. The Cobra brand was introduced in 1989 and was positioned as an ‘exotic, less gassy beer.’ Cobra has grown into a 200,000 barrel brand, distributed in more than 40 countries, and stocked by majority of ethnic restaurants in the UK.

The rapid growth in popularity of Cobra compelled management to implement an aggressive expansion plan over the past two years. However, the business model could not be sustained in the current economic environment and Cobra was put up for sale in late 2008. Considering Cobra is an excellent fit with its UK portfolio with strong international brands such as Grolsch, Blue Moon and Sol, TAP (UK) in mid 2009 formed the joint venture. The joint venture further builds on the company’s commitment to offer customers a wide range of beers.

Molson Coors is the fifth-largest brewer worldwide. Castle Brands (ROX - Analyst Report) is the main competitor with a solid platform of high-end, high quality, premium branded spirits. Boru vodka, the company's leading brand, is an ultra-pure, quadruple distilled, and specially filtered premium vodka. ROX also has a growing distribution network in Europe primarily in the Republic of Ireland, the United Kingdom, Germany, France, Italy and elsewhere, primarily in the Republic of Ireland, the United Kingdom, Germany, France, Italy, Canada and the Caribbean.

Email	Print	Share	RSS	Rate Pos	Rate Neg	Comment