The WA-based owner of beer brands including Gage Roads, Matso's and Atomic has struck a deal with Chicago-based Molson Corrs to exclusively represent the Miller Chill, Miller Genuine Draught, Coors and Molson Canadian brands in Australia.
Good Drinks Australia (ASX: GDA) expects to sell approximately 15 million litres annually of these brands, representing a material volume and earnings driver that will deliver an estimated $35-40 million in additional revenue and a further $3-4 million in earnings.
This compares to FY21 sales of $51.6 million and $10.7 million in EBITDA for the company, which earlier this year opened its destination waterfront brewery Gage Roads Freo.
The company claims the Molson Coors brands complement its current product range, broadening the offering to include the significant premium international beer category of the alcohol market without competing directly with its existing brand portfolio.
The Molson Coors brands will be manufactured by Coopers Premium Beverages, with some brands being imported, and will not impact on Good Drinks’ production capacity.
An initial on-boarding of inventory and terms of trade will require additional working capital, to be funded via an extension of CDA's existing working capital facility.
"The Molson Coors partnership is a game-changer for our business and delivers a step change increase in revenue and earnings whilst also expanding avenues to market for Good Drinks proprietary brands," says GDA managing director and co-founder John Hoedemaker.
"The Molson Coors partnership is a game-changer for our business and delivers a step change increase in revenue and earnings whilst also expanding avenues to market for Good Drinks proprietary brands."
Molson Corrs APAC regional director Shaun Morton is pleased to have secured a long-term distribution agreement with Good Drinks.
"We have managed to find a trusted business partner in GDA that will help us deliver on our growth ambitions on the Australian market," Morton says.
"Australia is a priority market for Molson Coors and as such, GDA’s local market expertise and nationwide distribution coverage provide an excellent platform from which to develop our portfolio.
"We are looking forward to a long and successful partnership with Good Drinks."
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