Two of the largest beer manufacturers in the U.S. are linking up.
Molson Coors Beverage Company and D.G. Yuengling & Son announced today a joint venture and long-term brewing partnership to expand distribution of the Pottsville, Pennsylvania-headquartered brewery’s beer beyond the East Coast.
The joint venture between the two companies will oversee new market expansion outside of Yuengling’s existing 22-state footprint, as well as future distribution growth within New England. Those efforts are slated to begin in the second half of 2021.
According to a joint press release issued by the two beer companies, Yuengling “remains a family-owned business and the existing company will operate separately from the joint venture with Molson Coors.”
As part of the JV, the Yuengling family will work with the Coors and Molson families and Molson Coors Beverage company “to brew Yuengling products and expand their geographic footprint as an extension of America’s Oldest Brewery. Together, Yuengling brewers will work hand-in-hand at Molson Coors’ world-class brewing facilities and tap into their expertise in brewing and distribution to make the Yuengling brands more accessible to fans by opening markets the company can’t currently reach.”
An evenly split board of directors made up of family members from both companies will govern those moves.
“We are excited to launch this brewing partnership with the team at Molson Coors. Like Yuengling, Molson Coors has an established commitment to quality and rich history of family brewing excellence,” Wendy Yuengling, chief administrative officer and sixth generation family member, said in a press release. “This partnership is a great opportunity for us to grow our distribution footprint for the long-term, while continuing to support our existing markets and the communities in which we operate.”
“This is a huge growth opportunity for Yuengling, it’s a huge growth opportunity for Molson Coors, and we’re going to make a whole lot of Yuengling fans out west really happy,” Molson Coors president and CEO Gavin Hattersley added. “Today, three storied brewing families and their collective 18 generations of brewing excellence, have come together with one goal for the future – a future focused on growth. That is worth celebrating.”
In 2019, the Brewers Association ranked Yuengling as the largest domestic craft brewery by volume production. Yuengling produced 2,654,622 barrels of beer last year, a 2% decline compared to 2018. The next closest craft brewer, Boston Beer company, produced 1.75 million barrels in 2019.
Year-to-date dollar sales of Yuengling products in off-premise retailers have increased 3.6%, to $241.3 million, through August 9, according to market research firm IRI. Yuengling’s traditional lager is a top 20 selling brand in multi-outlet and convenience stores, and its sales have increased 3.7%, to nearly $188.8 million, through early August.
The formation of a JV with Yuengling comes nearly 10 months after Pabst Brewing Company said it would transfer the majority of its production volume to City Brewing Company by December 2024, essentially beginning to wind down its long-time contract production agreement with Molson Coors. In May, Pabst also exercised its option to acquire Molson Coors’ Irwindale, California-based production brewery.
More details on the Yuengling-Molson Coors JV are expected to be revealed during a virtual press conference held later today.