ZOA will use the investment (which represents an expanded minority stake, value of which has not been disclosed) to increase media and marketing to drive incremental sales and expand distribution to international markets. Molson Coors will continue to be ZOA’s exclusive distribution partner and will assume a presence on its board as part of the agreement.
Molson Coors initially invested in ZOA at its 2021 launch. Today, ZOA is available at more than 42,000 retail locations and more than 160,000 points of distribution across the US and Canada.
“This investment is another meaningful step for Molson Coors and our transformation into a total-beverage company,” said Chief Commercial Officer, Michelle St. Jacques. “ZOA is an incredible brand in a growing category, so we’re fueling it with the right resources to scale and accelerate its results to become a bigger player in the energy space.”
ZOA reported more than $100m in sales in 2022 and 138% year-over-year growth. With Molson Coors’ expanded minority stake, ZOA will be positioned for further growth across its retail and direct-to-consumer business. The brand also plans to double its media investment in 2024.
ZOA’s plans for 2023 include product innovation, fresh new flavors and a new can design. Two new flavors - Strawberry Watermelon and Cherry Limeade - were recently launched. Paired with its redesign, ZOA recently unveiled its “Fuel Something Bigger,” initiative, where it will more than double its marketing investment, focusing on this new campaign and shopper marketing efforts through a variety of channels including digital, out-of-home, and paid social media.
Molson Coors Brewing Company became Molson Coors Beverage Company in 2020 to reflect a 'strategic intent to expand beyond beer and into other growth adjacencies'.
The partnership with ZOA follows Molson Coors’ acquisition of Kentucky's Blue Run Spirits last month, which also complements the company’s Beyond Beer strategy to include an array of 'powerhouse brands' in growing categories and new routes to market.
“We’ve been building our beyond beer portfolio steadily for years, and it’s paying off,” St. Jacques said. “We think ZOA is poised to be the next big energy drink brand, and it’s a great example of investing in a brand that’s disrupting a growing category.”