Molson Coors buys Sharp's Brewery for £20m

Molson Coors UK, which produces Carling and Grolsch lagers, announced today it has bought Sharp's, the Cornwall-based brewery, for £20m.

A spokesman for the Burton-based brewer said it had no plans to move Sharp's - best known for its Doom Bar cask ale brand - from its current home in Rock, near Padstow, nor were any job losses likely among the 80-plus staff.

Founded in 1994, Sharp's produces around 70,000 barrels of beer a year, with more than 90 per cent going into the on-trade. Its other cask ale brands include Cornish Coaster and Sharp's Own, while its bottled beers include the Rick Stein-inspired Chalky's Bark and Chalky's Bite.

Commenting on the deal Mark Hunter, Molson Coors' chief executive, said his company respected what he called the "unique culture of Sharp's brewery and the special appeal of their brands to beer drinkers".

The Doom Bar brand was "modern and progressive", Hunter added, and had the potential become a "truly extraordinary" one.

Hunter said Molson Coors had a wealth of experience with such ventures and an "excellent track record of building brands across all markets".

Nick Baker, Sharp's' managing director, said the brewery had worked with Molson Coors for a number of years and recognised it had 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".

Sharp's head brewer, Stuart Howe, said he recognised Molson Coors' "passionate commitment" to the Doom Bar brand and looked forward to it becoming the best cask beer in the UK with Molson Coors' support.

In the year to October 31, 2010, Sharps reported turnover of £16.1m, up from £11.4m the year before, while profits came in at £1.63m, up from £428,000 in 2009. Volumes have doubled in two years, said a spokesman.

Molson Coors said Sharp's' Doom Bar was a strong addition to its beer portfolio. At the end of last year it launched a £1m microbrewery in Burton, producing brands such as Worthington's White Shield.

Last year the brewing giant also snapped up distribution rights for Corona, the bottled Mexican lager previously handled by Charles Wells, and began brewing and bottling Cobra, the Indian lager, at its Burton headquarters.

One multiple pub operator said the deal would enable Molson Coors to enter a number of estates where it was currently under-represented but that Doom Bar was in danger of losing its uniqueness as its coverage grew.

"Plus I hope they don't close the brewery at Rock," he added. "Cornwall needs all the jobs it can get."