Molson Coors and Lord Karan Bilimora have entered into a joint venture to buy struggling Cobra Beer . The pair have agreed a pre-packaged administration deal, which will involve the sale being carried out without the business being offered on the open market. Molson Coors already own Carling, Coors Light, Grolsch and Sol.
The deal has been labelled as the ‘best outcome’ for lager brand Cobra Beer by administrators PricewaterhouseCoopers, who revealed the company had run into financial difficulties during the economic downturn, accruing losses of around £16 million last year. Experts have said the company has been a victim of declining beer sales in pubs and a reduced demand for premium lagers .
The company will now be jointly owned by Molson Coors UK, and a new company controlled by Lord Bilimoria, the founder of Cobra Beer. Lord Bilimoria, an Indian born British peer, had put the company up for sale in November, and now intends to expand the beers presence in India, with a target of taking 10 per cent of the Indian market by 2012. The beer is already sold in Indian restaurants, whilst the company has spent £40 million on marketing in the past 20 years in an attempt to gain a presence in the pub trade.
Duo Agree Joint Venture for Cobra Beer Takeover
Thu, 25 Jun 2009
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