Molson Coors (NYSE: TAP) is investing $100 million in Canadian operations to ramp up production capability for hard seltzer. The investment will more than quadruple capacity.
The company announced yesterday that it will make a sizable investment in its Toronto brewery to install “state-of-the-art reverse osmosis and nanofiltration technology, a new flavor kitchen, a blender and a new sleek-can line.”
The upgrades, slated to come online in early 2022, accelerate the company’s hard seltzer capabilities in Canada. Both malt-based and spirit-based hard seltzer growth is planned, and the new equipment boosts production capacity by over 300%.
“The No. 1 priority for our Canadian business is ramping up our hard seltzers to position ourselves as a top-share performer,
says Brian Erhardt, chief supply chain officer for Molson Coors.
“These investments will help us control our own destiny on manufacturing, balancing production between our own facilities and trusted third parties.”
Molson Coors plans to continue to use partners to produce hard seltzers and other beyond-beer beverages, even once in-house capacity is expanded, Erhardt says.
The company projects hard seltzers to grow exponentially into a multibillion-dollar segment over the next few years in Canada, which remains in an earlier state of maturation as compared with the U.S.
And Molson Coors has its eyes on corralling a large share of the segment, starting with twin launches this year of Vizzy and Coors Seltzer.
Adding hard seltzer capabilities in Canada are part of a broader investment plan to grow Molson Coors’ above-premium hard seltzer business across the globe.
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