Molson Coors confirms distribution of Corona from 2011

Molson Coors has confirmed that it will distribute Modelo brands including Mexican lager Corona Extra from January next year.

The Carling brewer will distribute the products across the UK, Channel Islands and Japan.

Grupo Modelo decided not to renew its contract with the brand's previous UK distributor Wells & Young's after 15 years.

"We are delighted to serve as distributor of Modelo's portfolio of brands in the UK and Channel Islands," said Molson Coors CEO Mark Hunter.

"Among their many strong brands, Corona Extra is one of the world's top five beer brands and, as an established premium lager, is a great addition to our growing portfolio of world beers. We are committed to providing significant marketing support behind these brands for the benefit of our beer drinkers, our partner Modelo and Molson Coors UK."

Vice-president of Grupo Modelo José Pares added: "We are pleased to be extending our relationship with Molson Coors into the UK and Japan. Modelo and Molson Coors are two major beer groups with complementary brand portfolios. This new partnership will allow us to collaborate in offering our consumers a wide range of products to satisfy different needs at different moments".

In another blow to Wells & Young, the Bedfordshire brewer also lost Red Stripe to Diageo, resulting in an overall £85m loss to the business.