Molson Coors takes 50.1% stake in Cobra

Molson Coors will produce and market Cobra Beer in the UK, where it is sold in 6,000 restaurants, a majority of which offer specialities from the Indian subcontinent.

Bilimoria was forced to put the company into administration after failing to secure a sale or a company voluntary arrangement. Bilimoria had tried hard last year to sell his company for around £180-200m.

Mark Hunter, chief executive of Molson Coors UK, said the brand would have a much healthier financial position after transferring distribution to Molson Coors, which controls 20% of the UK beer market.

The venture doesn’t include Cobra’s Indian operations, which will remain owned by Cobra’s existing shareholders. Established in 2002, Cobra’s Indian sales grew 35% in the three months to 31 January 2009.

Source: Business Standard