Molson Coors buys Sharp's

Carling brewer Molson Coors has acquired Cornish real ale brewer Sharp's.

The global brewing giant said the acquisition represented a "tremendous opportunity for growth in volume and distribution" with cask beer now accounting for 15.2% of on trade beer volumes — its highest for a decade — with 8.6m drinkers.

Molson Coors is believed to have paid around £20m for Sharp's.

Sharp's reported a quadrupling of profit after turnover growth of 40% in 2010. The company saw turnover leap from £11.4m in the year to 31 October 2009 to £16.1m in the year to 31 October 2010.

Pre-tax profits soared £428,225 in 2009 to £1.63m for the most recent year.

Progressive brand​

It is Sharp's main brand, Doom Bar, which attracted the attention of Molson Coors. "The Doom Bar brand is modern and progressive," said chief executive Mark Hunter. "It has a loyal following and excellent reputation amongst consumers and customers alike and has the potential to become a truly extraordinary brand.

"This is a new chapter for Sharp's Brewery and we are excited to play our part in taking Doom Bar to the next stage of its brand evolution."

Hunter stressed the company would "preserve the unique culture of Sharp's Brewery" and keep the brewery in Rock open although the Campaign for Real Ale has already raised concerns about whether the brewery will be closed and over the future of other Sharp's brands aside from Doom Bar.

"We have a wealth of experience with this type of venture and an excellent track record of building brands across all markets. We respect and want to preserve the unique culture of Sharp's Brewery and the special appeal of their brands to beer drinkers," he said.

Relationship​

Nick Baker, managing director Sharp's Brewery, said it had formed a great working relationship with Molson Coors over the years. "We recognised that they have the capabilities, comprehensive routes to market and the culture to build on and accelerate the progress the business is making which is why we are delighted to have done this deal.

"It was, and is, important to us to know how Molson Coors will manage Sharp's and their plan to invest in developing the brewery at Rock and the Doom Bar brand is spot on. We are excited to watch Sharp's Brewery achieve even more under their stewardship."

Concern​

But CAMRA voiced some concern over whether the brand would lose its heritage. Research and information manager Iain Loe said: "We always have a concern when a regional brewer is bought by a global brewer for its brands.

"Sharps has built up its reputation over a long period of time and it has an iconic brand. We are concerned it could lose its roots as a Cornish brewery.

"Marketing cask conditioned beers is different than lager. I wonder whether they have the expertise to marked cask conditioned beer. Worthington Red Shield seems to have had two or three attempts at a national launch.

"However, there is a bright spot in that Molson Coors are perhaps recognising there is a future in real ales."