Molson Coors Beverage Company is betting big on hard seltzer in the UK. The beverage company announced this week that it is investing $34.6 million (or £25 million) in its Burton-on-Trent brewery.

Significant upgrades include the addition of a new hard seltzer canning line, as well as upgrades to its beer and cider capabilities. Work on the upgrades and new canning line will begin in 2021.

The introduction of the new hard seltzer canning line will allow Molson Coors (NYSE: TAP) to expand its distribution footprint in the burgeoning spiked and sparkling markets of the UK and Western Europe.

The Staffordshire, England, facility will manufacture Coors’ recently released hard seltzer brand Three Fold, which is sold in 330 ml (11.2 oz) sleek cans. It will also support new products in the growing hard seltzer and ready-to-drink (RTD) segments.

Cans should begin rolling off the new line in the spring of 2022. In addition to expanding the facility’s capacity, recent investments have been made to increase the plant’s efficiency while reducing its environmental footprint.

“The hard seltzer and ready-to-drink categories present a huge opportunity for growth,” said Phil Whitehead, managing director of Molson Coors in Western Europe.

“The RTD category is the fastest growing in alcohol globally and, while it’s early days, we’re seeing strong indications that hard seltzers will prove as popular in Western Europe as they have in the U.S.”

The Burton expansion in the UK is part of Molson Coors’ larger strategy to grow its above-premium hard seltzer portfolio globally. It follows May’s news of a $100 million investment in Canadian seltzer facilities that will ultimately quadruple its capacity.

Molson Coors has steadily invested in the Burton facility over the last decade, which employs over 1,000 people. The latest round “will allow us to scale up at speed and help our customers to rapidly respond to that growing demand from consumers in this quickly emerging category,” said Whitehead.

Three Fold

Prior to the news of the expansion, the beverage company launched a $7 million (£5 million) multimedia campaign promoting Three Fold. The campaign, which launched in June, is “the biggest brand investment Molson Coors ever has made into a new category in Europe,” according to the company.

Three Fold is available in a trio of flavors, including Citrus (orange, grapefruit, and lime), Tropical (mango, pineapple, and watermelon), and Red Berries (strawberry, raspberry, and pomegranate). Each 330 ml can contains 93 calories and 4% ABV.

Brewing in Burton is Better

“This latest round of investment demonstrates not only our commitment to grow our portfolio but also to our great brewing home and town of Burton,” said Whitehead.  The brewery, which formerly produced Bass beer, currently produces Carling and Worthington Bitter beers.

Burton, which is approximately 135 miles northwest of London, has a long history of brewing.  At the peak of its production, breweries in Burton supplied approximately 25% of all beer sold in the UK.

“While we’re committed to opening up new opportunities for growth for our customers by responding to changing consumer tastes beyond beer and cider, our heartlands are in beer and the ongoing investment we’re making in our Burton Brewery will help to further drive efficiencies and meet our sustainability goals,” the managing director added.

With its production capacity set to expand, let’s hope Molson Coors decides to send some Three Fold across the pond.

Erin Grafton
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