Molson Coors Secures Controlling Interest in ZOA Energy Brand as Market Headwinds Impact 2024 Outlook

Molson Coors Beverage Company (TAP, TAP.A) has moved to strengthen its position in the premium energy drink segment by acquiring a majority ownership stake in ZOA, the health-conscious energy beverage brand that counts Dwayne “The Rock” Johnson among its co-founders alongside Dave Rienzi, Dany Garcia, and John Shulman.

Long-Term Partnership Evolution

The relationship between Molson Coors and ZOA traces back to the brand’s 2021 market entry, marking the beverage giant’s strategic pivot toward better-for-you categories. The company incrementally built its investment position, raising its ownership stake significantly in September of the previous year before now securing control of the company.

Full-Year Guidance Revised Downward

In a separate but equally significant announcement, Molson Coors revised its full-year 2024 financial expectations. The company adjusted its top-line trajectory, now projecting net sales to decline approximately 1% year-over-year on a constant currency basis—a notable shift from the previous forecast of low single-digit growth against the prior year on the same basis.

The recalibration reflects challenging conditions across the U.S. beer market, particularly during the critical summer selling season when consumer demand typically peaks. Despite the sales headwind, the company maintains confidence in its operational metrics, with underlying earnings per share still anticipated to grow in the mid single-digit range compared to 2023, though guidance has been tightened to the upper end of that range.

Market Response

Investor sentiment reacted swiftly to the news, with Molson Coors shares retreating 3% during pre-market trading on Thursday, reflecting broader concerns about near-term industry dynamics and the company’s competitive positioning.