Molson Coors acquires Mount Shivalik Breweries

The acquisition will give Molson Coors International, access to various popular brands, including the leading strong-beer brand 'Thunderbolt'

Global brewer-Molson Coors Brewing Company has acquired Mount Shivalik Breweries Ltd (MSBL), having brewing operations one each in Punjab and Haryana, for an undisclosed amount. MSBL is the maker of the popular beer brand 'Thunderbolt'.

As part of the transaction, Molson Coors International (MCI), a wholly-owned unit of the American firm, acquired MSBL's entire brand portfolio, including Thunderbolt, and assumes direct control over brewing operations in Haryana and Punjab, as well as distribution for Thunderbolt in Bihar.

The terms of the transaction were not disclosed and all required regulatory approvals have been received. The entity will continue to be called Mount Shivalik Breweries for a period of time. This transaction builds on an existing contract brewing and distribution partnership between the two companies that was initiated in early 2013.

Molson Coors entered India in June 2011, when the company purchased a controlling stake of Cobra India, thereby creating the joint venture Molson Coors Cobra India. Molson Coors Cobra maintains one brewery in Bihar, where it has secured a strong share position through the strength of its brand portfolio led by Iceberg 9000, King Cobra, Royal Brew and now ThunderBolt. In early 2013, Molson Coors Cobra and MSBL entered into a contract brewing and distribution agreement whereby each party would brew and distribute each other's brands in their respective markets.

Mount Shivalik Brewing maintains brewing operations in Punjab and Haryana with combined brewing capacity of 600,000 hectolitres and has a strong brand presence across a number of states including Punjab, Haryana, Jharkhand, Bengal and UP. MSBL will be headquartered in Chandigarh and operate as a separate entity from Molson Coors Cobra with a separate governing board. The MSBL leadership team will be led by Ravi Kaza.

"We are very pleased to be deepening our partnership with Mount Shivalik, which has always been based on shared values and business ambitions," said Kandy Anand, President and CEO of MCI.

"With the added brewing capacity, increased distribution channels, as well as the passion and skill of MSBL employees, we believe the strategic benefits of this transaction are abundant and clear. We are also very excited about the increased momentum the addition of Thunderbolt will bring to Molson Coors brand portfolio as we build our business in India, the world's fastest growing beer market," he added.