Molson Coors takes majority stake in ZOA Energy
Molson Coors – which initially invested in the brand in 2021 and subsequently increased its stake last year while assuming a presence on the board of directors – will now lead the entirety of ZOA’s marketing, retail and DTC sales and development.
Natural caffeine
ZOA was founded in 2021 by Dwayne 'The Rock' Johnson, entrepreneur Dany Garcia, strength and conditioning coach Dave Rienzi and investor John Shulman.
The company’s better-for-you energy drink formulation includes camu camu (a fruit loaded with antioxidants and vitamins), electrolytes, B&C vitamins, caffeine (from green tea and green coffee beans) and amino acids.
The zero sugar drink’s flavors include Strawberry Watermelon, Frosted Grape, Green Apple, Cherry Limeade and Tropical Punch.
The brand is now available at more than 25,000 retail locations and more than 86,000 points of distribution across North America.
ZOA boasts repeat purchase rates of 50%, and an ability to attract new consumers to the energy category.
In fact, 30% of ZOA buyers are new to the space, according to the brand.
The brand’s direct-to-consumer business is also a significant driver of sales and consumer visibility, and it's one of the top 10 energy drink brands on Amazon.
Molson Coors – which sees better-for-you energy drinks sales outpacing the broader category - says ZOA is ready for a ‘step change’ in growth to make the most of the momentum behind the category and will lead this growth charge moving forward.
That comes on the back of new packaging, a new visual identity and ZOA’s first national marketing campaign (featuring Dwayne ‘The Rock’ Johnson).
Johnson will remain a ‘visible face of the brand’ moving forward through this 'Big Dwayne Energy' campaign, which was launched earlier this year.
For Molson Coors, the deal is part of its strategy to move beyond beer and across the beverage category.
“We’re building a winning portfolio that offers consumers choices across a wide range of occasions, and non-alc is a key part of that strategy,” said Molson Coors Chief Commercial Officer Michelle St. Jacques.
“ZOA opens the door for us to participate in more parts of the day and incremental opportunities beyond our core business. We’ve built a strong foundation with ZOA over the past three years and we see a ton of opportunity for this brand to achieve its next stage of growth and scale.”
Molson Coors’ latest investment in ZOA is subject to standard regulatory approval processes and customary closing conditions. The value of the investment has not been disclosed.
The deal comes just after Keurig Dr Pepper announced a $1bn deal to acquire GHOST Energy and the GHOST sports nutrition business, starting with a 60% stake in the brand for $990m and a pathway for the full acquisition in 2028.
PepsiCo, meanwhile, has invested in better-for-you energy drink Celsius.
