Molson Coors Beverage Acquires Whiskey Producer Blue Run Spirits, Marking It First Spirits Acquisition

Molson Coors Beverage Company TAP has reached an agreement to acquire a producer of bourbon and rye whiskies, Blue Run Spirits for an unknown sum.

The deal is expected to broaden Molson Coors' evolution as a total beverage company, away from its history as just a beer company, and will provide Blue Run with growth resources.

The acquisition will more than double the size of Molson Coors' spirits team, further supporting the company's premiumization strategy.

Molson Coors entered the whiskey space with the 2021 launch of Five Trail Blended American Whiskey and the 2022 introduction of Barmen 1873 Bourbon.

Blue Run, launched in 2020 has been lauded by whiskey experts and branding aficionados for its premium whiskies that generate intense interest with each release.

The company has established Coors Spirits Co, which will house Blue Run, Five Trail Blended American Whiskey, and Barmen 1873 Bourbon.

Mike Montgomery, Tim Sparapani, Jesse McKnight and Andy Brown, the founders of Blue Run will all remain with the brand, with Montgomery taking on an expanded role with Molson Coors as its vice president of Coors Spirits Co.

Molson Coors Beverage held $960.9 million in cash and equivalents as of June 30, 2023.

Price Action: TAP shares are trading  lower by 0.85% at $4.47 on the last check Tuesday.