Nearly a year after entering an exclusive 10-year distribution partnership with Philadelphia-based coffee roaster La Colombe, Molson Coors Beverage Company announced this week that it is taking the brand’s RTD coffee products nationwide in the conventional channel and big box accounts, including Kroger, Walmart, Target and HyVee alongside multiple West Coast regional grocers.
According to Molson Coors, the expansion comes earlier than anticipated due to the brand’s strong performance in national retailers such as CVS and QuikTrip. In a blog post, Pete Marino, president of emerging growth at Molson Coors, said the move was also emblematic of strong growth in the overall RTD coffee category.
“The fact that we have already unlocked these new distribution channels is a testament to La Colombe’s great products, our incredible distributor network and our ability to successfully drive a meaningful non-alcohol portfolio,” Marino said in the post. “Specialty and (ready-to-drink) coffee products are one of the fastest-growing spaces in the beverage industry, and I’m extremely excited that it is a fast-growing part of Molson Coors’ beyond beer portfolio as well.”
In a note to business partners yesterday, Marino wrote that the specialty and RTD coffee market is at nearly $4.5 billion in revenue. Molson Coors distributes La Colombe in about 15,000 retail stores nationwide. The company reported that through the partnership, La Colombe has increased its presence in the convenience channel by over 400%.
According to market research firm IRI, La Colombe’s cold brew products were up 45.2% to $12.7 million for the 52-week period ending June 13 and its products classified as cappuccino/iced coffee rose 40.5% to $23.4 million. The brand’s additional refrigerated RTD coffees were up 172.4% to $8.4 million.
The two companies entered the 10-year partnership in October 2020, with the initial focus slated around the drug and convenience channels. Speaking to BevNET at the time, La Colombe founder and CEO Todd Carmichael said he believed consumer awareness around cold brew coffee was “just starting” and noted that the strength of Molson Coors’s distribution network would help cement the brand’s status as a leader in the category.
“It’s been a real big climb,” Carmichael said in October. “You climb in the hopes that you connect with people and then you find there’s a David and Goliath scenario, but now the Goliath is your best friend — and that’s what I’ve done. You know, David and Goliath are besties.”
Molson Coors noted that La Colombe is “a critical part” of its non-alcoholic beverage strategy, alongside plant-based energy drink ZOA, and is among the most established brands in its portfolio. The company has continued to focus on growing its presence in the non-alc sector, including minority stakes in bottled water brand ZenWTR and California beverage incubator L.A. Libations, which has developed multiple new brands for the company.
“We are committed to building a great non-alc business and with brands like La Colombe and ZOA, we couldn’t feel better about driving the mass, margin and momentum that our network loves,” Marino said in the blog post. “It’s not easy to stand up a brand-new business like this, but with the quality of our brands combined with our organizational ambition and focus, we are confident in our future as a non-alc player.”