Molson Coors buys Monaco Cocktails owner in RTD expansion

• Molson Coors has acquired Monaco Cocktails owner Atomic Brands for an undisclosed amount, the brewer announced Monday. The purchase is expected to close “in the coming weeks.”
• Monaco, which Molson Coors called a pioneer of the RTD category, is sold across the U.S. It has a strong presence in convenience stores, a channel that has been particularly lucrative for RTD beverages.
• The deal boosts Molson Coors’ “beyond beer” portfolio, a key focal point for the beer giant as beer sales decline and demand for ready-to-drink cocktails continues to soar.

Monaco launched in 2012 and holds a 5% market share for single-can RTDs, according to Nielsen xAOC data cited by Molson Coors. The beer company “sees significant opportunity to further scale” the cocktail brand by boosting marketing efforts and expanding through chain retailers, Food Dive reports.

Molson Coors has been leveraging M&A to expand its portfolio beyond beer and become a larger player in sectors like energy drinks, canned cocktails and nonalcoholic drinks. The addition of Monaco gives Molson Coors a stake in the RTD category, diversifying its beyond beer offerings, which include Fever Tree U.S. and Topo Chico Hard seltzer.

Last October, Molson Coors cut 400 salaried jobs and later said it would redeploy related savings into M&A.

Monaco makes single canned cocktails in several flavors, including Citrus Rush, Watermelon Crush, Lime Crush and black raspberry. The drinks made a name for themselves at sporting events and music festivals.

Molson Coors said Monaco is the No. 1 independently owned RTD singles cocktail brand in the U.S. Monaco’s distribution overlaps with Molson Coors’, setting up operational and commercial efficiencies.

Molson Coors joins several of its alcohol rivals in buying up an RTD cocktail brand in the midst of changing alcohol consumption. Sazerac bought Dirty Shirley last week, and Anheuser-Busch took a majority stake in BeatBox.