Everything’s bigger in Texas and America’s oldest brewery is hoping that beer sales will be too.
This fall, the Lone Star State will be the first new market to receive D.G. Yuengling & Son beer as part of the Pennsylvania brewery’s joint venture (JV) with Molson Coors Beverage Company, the companies announced in a press release.
“We have heard from consumers all over the country who are excited to enjoy our beer, which is why we’re proud to announce that Texas will be the first western state we’ll be expanding to,” chief administrative officer Wendy Yuengling said in the release.
Yuengling and Molson Coors announced the JV in September 2020, in which Molson Coors will brew, distribute and sell Yuengling products in the 25 western states where its beer isn’t currently sold.
Molson Coors will brew Yuengling offerings for the Texas market at its Fort Worth production brewery.
“We are working hard to ensure our recipes and brewing traditions will be followed to our high-quality standards,” Wendy Yuengling said. “We have passionate fans in Texas, so we are excited to finally bring them the goods.”
The JV is a 50/50 split between both companies. On the business operations side of the JV, Molson Coors will provide category management and analytics, while Yuengling will handle sales and marketing strategies, brand management and chain relationships.
“We are excited to take the first step in our long-brewing partnership, a step that will provide tremendous growth opportunity for Yuengling and Molson Coors,” Molson Coors CEO Gavin Hattersley said in the release. “By brewing Yuengling’s iconic beer at our world-class Fort Worth facility, we are going to make a lot of Texans happy.”
Texans are no strangers to legacy lager brands. Yuengling Lager stands to face competition from Pabst-owned Lone Star Beer, which was first brewed in 1884, and Gambrinus-owned Spoetzl Brewery’s Shiner Bock, which was first brewed in 1913.
When the partnership was first announced in September, Hattersley, Wendy Yuengling and her sister Jennifer Yuengling declined to specify which states the JV would explore first during its rollout. Launching in a state where Molson Coors has a production facility was a logical first choice. The company’s other breweries west of the Mississippi River are in Golden, Colorado, and Milwaukee, Wisconsin.
Yuengling teased the announcement on its Instagram account Wednesday with an animated map that flashed a Yuengling eagle in six states: Colorado, New Mexico, Kansas, Oklahoma, Missouri and Texas.
Earlier this week, Yuengling announced a partnership with Lee Brice, who sings the country song “More Beer.” Brice will serve as brand ambassador for Yuengling Lager and will work with the company’s Stars & Stripes program, an initiative to support members of the military.
In 2020, both companies’ off-premise dollar sales grew by modest single-digit increases. Yuengling’s dollar sales at off-premise retailers increased 4.5%, to $394 million, according to market research firm IRI. Molson Coors’ dollar sales increased 4.7%, to $7.873 billion, the firm reported.
Both companies lost share of beer category dollars, however. Molson Coors’ share declined by 1.71 sharepoints, to 17.98 sharepoints. Yuengling’s share declined by 0.09 sharepoints, to 0.9 sharepoints.