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Coors Light Beer is Coming to Russia

22. June 2010 by Christy 0 Comments

Despite a January tax hike which tripled the excise tax on beer, Molson Coors Brewing has signed a contract with Moscow brewing company MBC to bring the Coors Light brand to Russia. The contract extends until December 31, 2025 and the company will primarily focus on the Moscow market.

According to Evgeniy Kashper, co-owner of MBC, the Russian brewer plans to spend $8-$10 million on marketing in the first three years. MBC will also be responsible for brand advancement, a stipulation that thwarted Molson Coors’ attempt to enter the Russian market in 2005.

“Under that scheme we didn’t have a license but just bottled and distributed without a say in how the brand was marketed,” Kashper said (guess he doesn’t like the Coors Light train commercials).

A 2005 merger between two of North America’s largest breweries, Molson of Canada and Coors of the United States, led to the creation of Molson Coors Brewing Company. In 2009, the company generated $3.03 billion in revenue and reported a net income of $720 million. 

Source: RT.com