Molson Coors has agreed to purchase Kentucky-based distillery Blue Run Spirits, marking the beer giant’s first spirits acquisition and the formal launch of its Coors Spirits Co. business. The amount was not disclosed.
Blue Run, an award-winning maker of bourbon and rye whiskies, will join Five Trail Blended American Whiskey (launched 2021), Barmen 1873 Bourbon (launched 2022) and “future innovation” under the Coors Spirits Co. umbrella , according to a press release this morning. The acquisition will more than double the size of Molson Coors’ spirits team and further support the company’s premiumization strategy.
Launched in October 2020 by founders Mike Montgomery, Tim Sparapani, Jesse McKnight and Andy Brown, Blue Run has racked up several industry awards for its expressions and is currently available in retail and on-premise accounts in every region of the U.S and online.
“Molson Coors has been on a journey to broaden beyond our beer roots and build powerful brands in growing categories, and Blue Run joining us is an exciting next step as we establish Coors Spirits Co.,” Michelle St. Jacques, Molson Coors’ Chief Commercial Officer, said in the release. “Blue Run has accomplished in three years what many brands hope to do in a generation and has done it at the luxury end of the whiskey category. Importantly, we are committed to maintaining Blue Run’s well-known quality, design and innovation as we continue to grow our spirits portfolio.”
All four founders will remain with the brand, with Jim Rutledge set to continue to serve as its distillery consultant and liquid advisor. Meanwhile, Montgomery is moving to vice president of Coors Spirits Co., where he’s joined by Shaylyn Gammon as whiskey curator. David Coors will continue to lead top-level spirits strategy and development as executive chair of Coors Spirits Co.
Blue Run’s previously announced plans to construct a distillery in Kentucky by 2025 are still on track, per the release.
“Since launching Blue Run, we have always strived to do things a little differently to truly embrace today’s younger, more diverse generation of whiskey drinkers,” Montgomery said. “We are humbled by how the whiskey community has embraced our vision and that Molson Coors wants to join and support us in this journey.”
Molson Coors is among the major beer and soft drink companies that have transitioned into total beverage businesses through ready-to-drink beverages, but may be the first to extend into straight spirits. Global cannabis firm Tilray acquired Colorado-based Breckenridge Distillery in 2021 with an eye to expand its offerings and launch THC-infused spirits.
As higher end whiskey drives spirits sales, the entrance into the new category mirrors other recent acquisitions from major spirits players. Pernod Ricard made a play for flavored whiskey with a majority stake in Skrewball Whiskey in March, Indiana-based whiskey giant MGP Ingredients acquired Penelope Bourbon for $105 million in May, and the Campari Group purchased Wilderness Trail last year for $600 million. American whiskey sales were up 10.5%, totaling $5.1 billion in 2022, and more than 60% of the spirits sector’s total revenue was from sales of high-end and super-premium spirits, mainly led by tequila and American whiskey.