Advertisement
Australia markets closed

  • ALL ORDS

    7,937.50
    -0.40 (-0.01%)
     

  • ASX 200

    7,683.00
    -0.50 (-0.01%)
     

  • AUD/USD

    0.6497
    +0.0008 (+0.13%)
     

  • OIL

    82.84
    +0.03 (+0.04%)
     

  • GOLD

    2,328.90
    -9.50 (-0.41%)
     

  • Bitcoin AUD

    99,017.67
    -3,112.84 (-3.05%)
     

  • CMC Crypto 200

    1,385.35
    -38.75 (-2.72%)
     

  • AUD/EUR

    0.6071
    +0.0015 (+0.24%)
     

  • AUD/NZD

    1.0944
    +0.0014 (+0.13%)
     

  • NZX 50

    11,946.43
    +143.15 (+1.21%)
     

  • NASDAQ

    17,526.80
    +55.33 (+0.32%)
     

  • FTSE

    8,040.38
    -4.43 (-0.06%)
     

  • Dow Jones

    38,460.92
    -42.77 (-0.11%)
     

  • DAX

    18,088.70
    -48.95 (-0.27%)
     

  • Hang Seng

    17,201.27
    +372.34 (+2.21%)
     

  • NIKKEI 225

    38,460.08
    +907.92 (+2.42%)
     

The Rock's new energy drink is off to a strong start: Molson Coors CEO

Brian Sozzi
·Executive Editor
·2-min read

Molson Coors (TAP) could be poised to lay the smack down on established players such as Red Bull in the surging energy drink space, thanks to the help of the star power of Dwayne "The Rock" Johnson.

"The energy drink space is massive. Our partnership with The Rock is tremendous. He is not just a celebrity endorser. He is a partner with us in this venture. The ZOA energy drink just started to hit stores. We just had the first order from the distributors, and it was significantly more than we expected. And it's a big market, a $16 billion market in the United States and we think we can get a meaningful share of that," Molson Coors CEO Gavin Hattersley told Yahoo Finance Live.

In January, Molson Coors signed an exclusive distribution agreement for The Rock's new ZOA energy drink. It has launched recently at grocery stores and the likes of Vitamin Shoppe with five flavors in single-serve 16-ounce cans.

John Shulman, left, and Dwayne Johnson were among a group of partners to create ZOA, a new, better-for-you energy drink that will be distributed by Molson Coors. Credit: Molson Coors
John Shulman, left, and Dwayne Johnson were among a group of partners to create ZOA, a new, better-for-you energy drink that will be distributed by Molson Coors. Credit: Molson Coors

For beer giant Molson Coors, the foray into energy drinks coincides with a greater push into hard seltzer via a new deal with Coca-Cola for Topo Chico hard seltzer. Coca-Cola CEO James Quincey told Yahoo Finance Live the new Topo Chico hard seltzer line is off to a strong start.

ADVERTISEMENT

Hattersley is leading a charge to diversify Molson Coors from beyond beer.

The company estimates it could reach $1 billion in sales by 2023 from ancillary businesses such as energy drinks, CBD drinks, hard seltzer and a new distribution agreement for ready-to-drink La Colombe coffee.

These new lines of business come as the maker of Coors battles to overcome challenging beer sales at bars globally as a result of the COVID-19 pandemic. Molson Coors said this week net sales fell 9.7% in the first quarter. Adjusted operating profits dropped 20.2% from a year ago.

Here is how Molson Coors performed compared to Wall Street estimates for the first quarter:

  • Net Sales: $1.9 billion vs. $1.89 billion

  • Diluted EPS: $0.01 vs. a loss of 0.08

Despite the first quarter sales and profit declines, Molson Coors still sees full year sales up by a mid-single digit percentage. The company also anticipates reinstating its dividend later this year after suspending it in May 2020 amid the COVID-19 pandemic.

Brian Sozzi is an editor-at-large and anchor at Yahoo Finance. Follow Sozzi on Twitter @BrianSozzi and on LinkedIn.

What’s hot from Sozzi:

Watch Yahoo Finance’s live programming on Verizon FIOS channel 604, Apple TV, Amazon Fire TV, Roku, Samsung TV, Pluto TV, and YouTube. Online catch Yahoo Finance on Twitter, Facebook, Instagram, Flipboard, SmartNews, and LinkedIn.