Mumbai: Montreal-based Molson Coors Brewing Company and Cobra Beer India have jointly announced the formation of a joint venture company between them to brew and market Cobra beer in South Asia covering India, Bangladesh, Bhutan, Maldives, Nepal, Pakistan and Sri Lanka.
Under the terms of the agreement, Molson Coors will purchase a controlling stake of Cobra from the existing shareholders and will have operational control over the new joint venture company - Molson Coors Cobra. The joint venture will be headed by Lord Karan Bilimoria, Cobra’s founder and chairman of the Cobra Beer Partnership.
Molson Coors will also be investing additional capital in Molson Coors Cobra 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.
This deal marks the beginning of a long-term commitment to establish Molson Coors in , the world’s fastest growing beer market. Our first step will be to work with Cobra’s employees, customers and suppliers to consolidate the business.
Longer-term, our ambition is to build this compelling brand and grow the business to a meaningful market share as part of Molson Coors International strategy to achieve critical mass in high-growth emerging markets, said Molson Coors International president Kandy Anand in a Thursday statement.