Yuengling, a Philadelphia brewery, is heading west for the first time in its 191-year history.
DG Yuengling & Son and Molson Coors Beverage Company said on Tuesday that they would form a joint venture to make and sell Yuengling beer in the western United States. The agreement leads Yungling to national expansion and provides an opportunity to increase revenue for Molson Coors as the producer of Calls Light and Blue Moon, which leads to declining beer sales.
So far, Yuengling has kept much of the east of Mississippi, where its major lager and other beers have been distributed in 22 states. While the joint venture will be responsible for the production and sales of the brand in the Midwest and West, DG Ungling will remain a family-owned company and will continue to expand in its existing markets and others may add it to the Northeast.
Wendy Yengling, the chief administrative officer of DG Yuengling, said the exact details of the rollout will be determined with the official launch in a year.
This expansion has been a long time for DG Yungling, who has taken a slow and systematic approach to development in its nearly two-century history. That part can be attributed to logistics: DG Yuengling has two breweries in Pennsylvania and one in Florida. Meanwhile, Chicago-based Molson Coors has seven American breweries including Colorado, California and Wisconsin.
By tapping into the breweries’ network of Molson Coors, Yengling Bears can bring their fans out via traditional distribution channels vs. West to pack them in their checked baggage or their car trunks.
The full terms of the 50–50 joint venture were not disclosed.
Sales and production partnerships come amid a time of turmoil in the American beer industry. After a year, overall beer sales dropped 2%, according to data from the Brewers Association, with the epidemic quickly causing turmoil for winemakers as restaurants and bars closed, the bulk of sales The part sank. Brewers are also increasing supply chain challenges due to huge changes in liquor and grocery stores.
CNN-Wires ™ and © 2020 Cable News Network, Inc., a Time Warner company. All rights reserved.