Heineken and Molson Coors sign import agreement for Mexican beer Sol
Molson Coors has signed a ten-year agreement to import, market, and distribute Heineken’s Sol beer brand through its US division MillerCoors.
Sol is a Mexican beer that was established in 1899 and has been part of the Heineken USA portfolio since 2004. It will continue to be brewed in Mexico.
The new agreement will allow both the companies to focus on key areas of growth within each of their portfolios and help them increase attention on investment and market opportunities within North America.
In addition, the deal will help MillerCoors to balance its portfolio by combining Sol's existing brand equity with its own sales, marketing, and distribution capability and established nationwide distribution network. MillerCoors expects to tap development opportunities both in the short and long-term.
For Heineken USA, this deal allows it to focus on making additional investments with its current Mexican portfolio, which is led by Tecate and Dos Equis, two of its fastest growing Mexican beers in North America.
Molson Coors' president and chief executive officer (CEO) of Mark Hunter said: "Given the steady growth of the Mexican import segment in the US over the past few years, the addition of Sol represents a key addition to our portfolio.
“We are excited to be offering consumers even greater choice with the addition of Sol and are confident we can grow the beer based on the brand's strong equity and the added reach of Miller Coors' national distribution network.
“This agreement clearly demonstrates the added speed and flexibility that comes with being the single owner of the US business, which allows us to quickly capitalise on strategic opportunities like this."
Heineken's Americas president Marc Busain said: "As far as Mexican beers go, Heineken US is fantastically positioned with two strong brands in Dos Equis and Tecate. This effort helps focus our current portfolio while accelerating Sol in the short and long-term."
Upon completion of the ten-year term, Heineken will have the option to re-acquire the import rights and responsibilities for Sol. Financial terms of the deal were not disclosed by either of the companies.