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Molson Coors Brewing Company and Cobra India announce joint venture
Our Bureau
Date of posting: 18-07-11
      Molson Coors Brewing Company and Cobra India announced the formation of a joint venture that will brew and market Cobra beer in South Asia.

      Under the terms of the agreement, Molson Coors will purchase a controlling stake of Cobra India from two existing investors and will have operational control over the new Molson Coors Cobra India. The joint venture will be chaired by Lord Karan Bilimoria, Cobra’s founder and chairman of the Cobra Beer Partnership in the UK. Molson Coors will also be investing additional capital in Molson Coors Cobra India to meet the working capital requirements and the future expansion plans of the brewery operations. The total investment by Molson Coors is approximately $35 million.

      The deal with Cobra India includes land, a 175,000 hl brewery in Bihar state, with potential to expand to 500,000hl, and a beer portfolio consisting of Cobra Premium, King Cobra Superior and Iceberg 9000.

      Kandy Anand, president of Molson Coors International, described the deal as “the beginning of a long-term commitment to establish Molson Coors in India, the world’s fastest growing beer market".

      The Indian beer market is growing at 12% annually in average and is estimated to grow to 50 million hl by 2020, putting it in the top 10 beer markets globally. The capacity of the Indian brewing industry year ending March 2011 was just under 27 million hl and it has a per capita consumption of just under 1.5 litres.

      The joint venture will have its headquarters in Mumbai, with operations led by the company’s president, Ravi Kaza.

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