Molson Coors buys majority stake in Zoa energy drinks

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Alcohol giant Molson Coors is continuing its quest to conquer beverages beyond beer by purchasing a majority ownership stake in Zoa, the energy brand created by Dwayne “The Rock” Johnson. Financial terms of the deal were not disclosed.

The deal gives Molson Coors a seat at the table in Zoa’s operations, with control over the brand’s marketing, direct-to-consumer sales and development strategy.

Molson Coors first entered a distribution deal with Zoa in 2021, and last year boosted its investment in the zero-sugar energy drink brand. The Coors Light maker said in the press release the majority stake purchase indicates the growth potential it sees for the brand. It pointed to Zoa having a 50% repeat purchase rate with consumers, and 30% of the brand’s consumers being new to the category.

The purchase allows the beverage giant to compete in more parts of the day with products outside its traditional wheelhouse, Michelle St. Jacques, the chief commercial officer at Molson Coors, said in a statement.

“We’re building a winning portfolio that offers consumers choices across a wide range of occasions, and non-alc is a key part of that strategy,” St. Jacques said. “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 is sold at over 25,000 retail stores across the U.S. The brand touts the drinks’ health halo, containing electrolytes, amino acids and antioxidants. Its flavors include Pineapple Coconut, Super Berry, White Peach and Cherry Limeade.

Energy drinks, buoyed by ascendant brands like Celsius and Ghost, are growing rapidly as consumers seek the pick-me-ups of caffeine throughout their day. The category is projected to be worth $205 billion by 2032, increasing at a compound annual growth rate of 8.5%, according to Straits Research.

Under CEO Gavin Hattersley, Molson Coors has worked to grow its Beyond Beer portfolio in recent years, seeking to diversify its revenue streams as beer faces long-term declines, with products from hard coffee to nonalcoholic cocktails.