TORONTO — Molson Coors Brewing Co. and giant Mexican brewer Grupo Modelo — owner of the Corona brand — have created a joint venture to import and sell Modelo's beer in Canada.
Financial details about the establishment of Modelo Molson Imports LP were not disclosed Wednesday in a release.
Molson's Canadian division, based in Montreal, already imports, distributes and markets Modelo brands in Ontario, Quebec and the Atlantic provinces.
The 50/50 joint venture will have its headquarters in Toronto and be led by Robert Armstrong, previously CEO for Modelo's office in Canada, called Canacermex.
Grupo Modelo, founded in 1925, accounts for about 63 per cent of the beer sales market in Mexico. It has seven brewing plants, with a total annual installed capacity of 60 million hectolitres.
The joint venture's board will consist of six directors — half from Grupo Modelo and half from Molson, including Jose Pares, vice-president of international markets for Grupo Modelo, and Dave Perkins, Molson Coors's chief strategy officer.
The move ''presents the Modelo brands with an excellent opportunity for growth in Canada, our second most important export market,'' said Rodrigo Testas, director of North America for Grupo Modelo.
''Molson showed great commitment to our brands ever since it first began importing our products into Canada and is the ideal partner for us.''
Kevin Boyce, CEO of Molson, said the joint venture ''gives us an excellent opportunity to expand and further develop our business in Canada.''
Grupo Modelo's brands include Corona Extra — the top imported brand in Canada and No.1 Mexican beer sold in the world — Modelo Especial, Victoria, Pacifico and Negra Modelo.
Molson's roots date back to 1786 and its brand portfolio includes Molson Canadian, Coors Light, Molson Export, Molson Dry and Rickard's. Molson also has partnerships with other brewers to offer Corona, Heineken, Miller Genuine Draft and Foster's Lager.
Molson employs 3,000 Canadians and operates six breweries, including the craft brewery Creemore.
