Falling Beer Sales Hasten Molson Coors' Transformation
Molson Coors (NYSE: TAP) is in the midst of a transition that it hopes will leave it less reliant on beer sales. Management sees the future of the company in a broader-based beverage portfolio that includes non-alcoholic drinks, which is why, among other things, it replaced "brewing" in its official name to "beverage" last year, took a minority stake in an "emerging beverages" maker, and formed a partnership with marijuana producer HEXO (NYSE: HEXO) to produce cannabis-infused beverages.
Now, Molson Coors is selling one of its breweries because it no longer needs the capacity it provides. Because it has had a long-standing relationship with Pabst Brewing to produce its beer, it entered into an agreement to give Pabst the option to purchase the facility.
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Source Fool.com
