Yuengling and Molson Coors Form Joint Venture to Expand Geographic Footprint of Yuengling Beers

Discussion in 'Beer News & Releases' started by Jason, Sep 15, 2020.

  1. Jason

    Jason Founder (8,627) Aug 23, 1996 Massachusetts
    Staff Moderator Fest Crew Society

    Yuengling and Molson Coors Form Joint Venture to Expand Geographic Footprint of Yuengling Beers

    Partnership to expand Yuengling's distribution to millions of fans

    POTTSVILLE, Pa., Sept. 15, 2020 - D.G. Yuengling & Son, Inc., America's Oldest Brewery®, and Molson Coors Beverage Company (NYSE: TAP, TSX: TPX) have launched a long-term brewing partnership, which will bring Yuengling's beer to millions more people outside of their East Coast footprint. This partnership will allow the distribution of Yuengling beers to expand further west for the first time in history. The formal announcement will be made at a press conference today at 10:00 a.m., EDT. Media interested in participating can RSVP here.

    The joint venture between Yuengling and Molson Coors will oversee any new market expansion beyond the 191 year old brewer's existing 22 state footprint plus any future New England expansion. The partnership is expected to begin by launching in the second half of 2021 and will be governed by a board of directors, consisting evenly of Yuengling and Molson Coors family members and executives. Importantly, D.G. Yuengling & Son, Inc. remains a family-owned business and the existing company will operate separately from the joint venture with Molson Coors.

    "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," said Wendy Yuengling, Chief Administrative Officer and 6th generation family member, D.G. Yuengling & Son, Inc. "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."

    The Yuengling family will work closely with the iconic Coors and Molson brewing families, and the 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.

    "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," said Gavin Hattersley, President and CEO of Molson Coors Beverage Company. "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."

    "We are excited to work with the Molson Coors' team on this partnership," said Jennifer Yuengling, Vice President of Operations and 6th generation family member, D.G. Yuengling & Son, Inc. "Fans can expect the same Yuengling recipes and great taste they have come to love for more than 190 years."

    About D.G. Yuengling & Son, Inc.

    D.G. Yuengling & Son, Inc., America's Oldest Brewery®, is family-owned and operated since 1829. Now sold in 22 states, production is supported by two breweries in Pottsville, PA and one in Tampa, FL. Principal beer brands include Yuengling® Traditional Lager, Light Lager, Black & Tan, Golden Pilsner, Premium, Light, Dark Brewed Porter, Lord Chesterfield Ale®, Oktoberfest, Yuengling Hershey's Chocolate Porter and new FLIGHT by Yuengling, the Next Generation of Light Beer™. Get access to media images here.

    Overview of Molson Coors

    For over two centuries Molson Coors has been brewing beverages that unite people for all of life's moments. From Coors Light, Miller Lite, Molson Canadian, Carling, and Staropramen to Coors Banquet, Blue Moon Belgian White, Blue Moon LightSky, Vizzy, Leinenkugel's Summer Shandy, Creemore Springs and more, Molson Coors produces some of the most beloved and iconic beer brands ever made. While the company's history is rooted in beer, Molson Coors offers a modern portfolio that expands beyond the beer aisle as well. To learn more about Molson Coors Beverage Company, visit molsoncoors.com, MolsonCoorsOurImprint.com or on Twitter through @MolsonCoors.
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  2. jesskidden

    jesskidden Poo-Bah (2,081) Aug 10, 2005 New Jersey
    Society Trader

    Damn. Now there's a deal that no one would have predicted...

    And thus answering the question, "Gee, when Pabst ends it deal with Molson Coors to brew most of its beers, how is MC going to make up the lost production and keep their US breweries operating efficiently as possible?"

    Well, in the 1980s the importer Merchant du Vin owned by Charles Finkel acted as the master distributor for Yuengling beers outside their then-traditional marketing region of the northeast.

    It's not the first time Yuengling had another brewery contract-brew their beer. When their Black & Tan took off in the '80s (and they still operated only the original brewery) Stroh brewed some B&T at their big brewery outside of Allentown for them - the same brewery now owned by the Boston Beer Co.
  3. EmperorBatman

    EmperorBatman Initiate (127) Mar 16, 2018 District of Columbia

    Who ended up picking up production for Pabst? I still see their stuff in stores.
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  4. jesskidden

    jesskidden Poo-Bah (2,081) Aug 10, 2005 New Jersey
    Society Trader

    (Note the word "when") It's explained in the snip from the Brewbound article (no longer available in full since the site went to subscription) in the linked thread.
    (Oh, it's in the thread title, too :grin:... "by December 2024").

    Beside using City's facilities (La Crosse, Latrobe, Memphis) Pabst is (supposedly) buying MC's closed California brewery in Irwindale. That brewery's rated capacity is 7M bbl., more than Pabst's current barrelage. (Of course, shipping beer from California to the mid-West and East Coast would not be cost-effective given Pabst's portfolio of mostly economy- and popular-priced brands).
  5. FBarber

    FBarber Poo-Bah (3,850) Mar 5, 2016 Illinois
    Moderator Society Trader

    Interesting development. I can't say Im super enthused by this ... I guess if the beer actually tastes the same and it gets distribution in IL, I'll be okay with it. But honestly, I'd rather just make occasional runs to IN to pick it up.
  6. dennisthreeninefiveone

    dennisthreeninefiveone Initiate (42) Aug 11, 2020 New Jersey

    I can see the posts already The Yuengling brewed in Golden is not as good as the the Yuengling brewed in Pottsville.
  7. EmperorBatman

    EmperorBatman Initiate (127) Mar 16, 2018 District of Columbia

    I'm looking forward to the debates about the water!

    WCKDVBZ Meyvn (1,034) May 9, 2014 South Carolina

    Who cares! Do people still by their swill?
    adrock314 likes this.
  9. Foyle

    Foyle Savant (981) Sep 29, 2007 North Carolina

    Should be a profitable arrangement for both companies. Although I never saw it coming, it makes sense for both MolsonCoors and Yuengling to enter into this deal.
    denver10, officerbill and FBarber like this.
  10. officerbill

    officerbill Zealot (560) Feb 9, 2019 New York
    Society Trader

    From the Morning Call (Allentown, PA) story

    I thought they were known for a little more than that, but oh well.

    MC will finally get a popular brand, Yay:clap:
  11. Ranbot

    Ranbot Defender (641) Nov 27, 2006 Pennsylvania

    ...or Tampa?

    Yuengling's "Golden" Pilsner might take on new unintentional meanings now. :grin:

    I do and yes. Just bought a 12-pack of their Oktoberfest last weekend to take to a family dinner.

    Coincidentally, I also bought a 12-pack of Coors Banquet stubby bottles because I was inspired by Cobra Kai [which shockingly Coors does not sponsor, but Johnny isn't exactly a responsible drinker either].
    #11 Ranbot, Sep 15, 2020
    Last edited: Sep 15, 2020
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  12. officerbill

    officerbill Zealot (560) Feb 9, 2019 New York
    Society Trader

    Yuengling 2019 sales= $60,400,000
    Molson Coors 2019 sales= $10,600,000,000

    Yeah, I'd say that people still buy their “swill”.
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    WCKDVBZ Meyvn (1,034) May 9, 2014 South Carolina

    Of course! I meant, as far as the "craft" (better) beer drinkers go.
    officerbill likes this.
  14. jesskidden

    jesskidden Poo-Bah (2,081) Aug 10, 2005 New Jersey
    Society Trader

    And it might get confusing, too:
  15. southdenverhoo

    southdenverhoo Devotee (413) Aug 13, 2004 Colorado

    So--is Yeungling still craft per the Brewer's Association? I'm guessing yes because they aren't "owned" 25% or more by Molson-Coors, indeed not even a single share of stock changed hands.
    officerbill likes this.
  16. jesskidden

    jesskidden Poo-Bah (2,081) Aug 10, 2005 New Jersey
    Society Trader

    Well, Boston Beer Co. was still "craft" when Heileman, Stroh and finally Miller brewed most of their beer.

    (Doubt that there is any Yuengling "stock" as such, it's simply wholly-owned privately by the head family member - current owner, Dick, Jr. actually bought the brewery from his father, Dick Sr. Don't know that they've announced the plans for when the daughters take control/ownership).
  17. PA-Michigander

    PA-Michigander Meyvn (1,448) Nov 10, 2013 Pennsylvania

    Will this push Yuengling’s production above the BAs limit of craft?
    officerbill likes this.
  18. jesskidden

    jesskidden Poo-Bah (2,081) Aug 10, 2005 New Jersey
    Society Trader

    I kinda doubt having their beer contract-brewed by Molson Coors and distributed in the rest of the country is going to more than double Yuengling's sales, which for 2019 was 2,654,622 bbl. At least not right away :grin:

    I'd imagine that, concentrated east of the Mississippi in about 2 dozen states (?) they are probably already available to the majority of the US population.
  19. rgordon

    rgordon Meyvn (1,080) Apr 26, 2012 North Carolina

    Well, how could it be? That Rocky Mountain water can't touch the Pottsville agua.
  20. EmperorBatman

    EmperorBatman Initiate (127) Mar 16, 2018 District of Columbia

    I’ve heard that that Pottesville agua is remarkably similar in water chemistry to the Wasser in Munich!
  21. rgordon

    rgordon Meyvn (1,080) Apr 26, 2012 North Carolina

    Das ist gut! I do like the Munich beers better.
  22. Kman_Colorado

    Kman_Colorado Initiate (68) Aug 17, 2014 Colorado

    Just to pick the nits...

    The PA Department of Corporations website shows there is a D. G. YUENGLING AND SON, INCORPORATED, which was formed in 1914. Ownership of a corporation is based on holding shares issued by the corporation. Assuming this is the top legal entity, there is at least one share outstanding, if not more. Now it is not publicly traded so you and I can't easily buy it unless Dick Jr is willing to sell you a share.
  23. hopfenunmaltz

    hopfenunmaltz Poo-Bah (1,827) Jun 8, 2005 Michigan

    The water in Tampa has a lot of treatment, it's from limestone.
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  24. Coronaeus

    Coronaeus Meyvn (1,139) Apr 21, 2014 Canada

    But will we get it up here?
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  25. jesskidden

    jesskidden Poo-Bah (2,081) Aug 10, 2005 New Jersey
    Society Trader

    According to a 1997 article, the brewery in Pottsville used the water from the Schuykill County Municipal Water Authority reservoirs, which is chlorinated and filtered - the brewery checks for the pH-level of 6.4. The brewery has it's own filtering system (sand, carbon & UV light) but doesn't always use it (?) except for the water added to bring the high gravity beer down to the correct levels.

    Prior to the 1960s*, they used water from the spring pump house a few blocks away from the brewery at 10th & Mahantongo (where Yuengling Park is) but "heavy use of the water source dried up the spring."

    (*And the old timers say the beer never was the same... and many started drinking Mt. Carbon's beer until they closed at which time the switched to Bud, Miller High Life and Genesee...)
    unlikelyspiderperson and FBarber like this.
  26. deanzaZZR

    deanzaZZR Initiate (143) Jan 8, 2015 California

    I remember drinking their Pottsville Porter in California in the early 1980s.