Molson Coors takes $75m hit on Blue Run Spirits
Brewing giant Molson Coors has recognised a US$75.3 million impairment charge for Kentucky-based Blue Run Spirits, signalling a decline in the value of its first major spirits acquisition.
Molson Coors made its first spirits acquisition in August 2023 with the purchase of Bourbon and rye whiskey producer Blue Run Spirits. Financial terms of the deal were not disclosed.
At the time of the deal, Molson Coors established Coors Spirits Co to house its existing spirits business, which includes Five Trail Blended American Whiskey, Barmen 1873 Bourbon, and ‘future innovation’.
However, the Chicago-headquartered firm recently disclosed in its third-quarter (Q3) results that Blue Run Spirits’ value has fallen significantly.
Molson Coors noted in its financial results: “During the third quarter of 2025, we identified triggering events that indicated that the carrying values of the Staropramen family of brands and the Blue Run Spirits asset group exceeded their respective fair values resulting in intangible asset impairment charges.”
The beer maker did not divulge any further details around Blue Run Spirits’ US$75.3m value write-down in its results.
Molson Coors recorded a sales drop of 2.3% for its third quarter and a decline of 4.6% for the first nine months of this year.
In recent years, the company has expanded its portfolio beyond beer to include brands like Vizzy hard seltzer, Five Trail whiskey and alcohol-free beverages.
Molson Coors also purchased an 8.5% stake in UK-based mixer producer Fever-Tree for £71m (US$88.4m) in January this year. The investment aims to grow the brand in the US.
Regarding the Fever-Tree deal, Molson Coors noted an “unrealised gain of US$39.3 million resulting from the change in the fair value of the investment” during its nine-month financial results.
Last month, Molson Coors announced a restructuring of its business with the aim of cutting approximately 400 positions by the end of this year. This would result in the reduction of 9% of the company’s Americas workforce.
As part of this plan to become a ‘leaner, more agile’ organisation, the company intends to focus on its beer portfolio and expansion into adjacent categories, such as premium mixers, alcohol-free beverages and energy drinks.
Molson Coors to fill gaps in spirits and RTDs
Speaking during the Q3 earnings call, Rahul Goyal, president, CEO and director of Molson Coors Beverage Co, said the company would prioritise the transformation of its ‘above premium beer’ and ‘beyond beer’ portfolios.
He also noted that the business has gaps in the portfolio, including in spirits and ready-to-drink, which the firm intends to fill.
On alcohol-free, Goyal said the business is “focused on building scale” with the Fever-Tree partnership providing a “strong base” to grow the company’s total non-alcoholic portfolio.
He told investors during the call: “In fact, Fever-Tree volume has been performing strongly, and it has been very well received by distributors and retailers, and we are excited by the opportunity to significantly grow the brand in the years to come.
“And this is just the beginning of our non-alc efforts as we see opportunities to enter some other interesting areas. So we are making the infrastructure investments in people and systems that help to support the development of this business into something meaningful over time.”
In March 2023, Blue Run revealed plans to build a distillery in Kentucky, which Molson Coors said would continue under its ownership when it announced the acquisition.
In August this year, Blue Run Spirits unveiled a limited edition Bourbon finished in gin barrels, called Glimmer.
Glimmer was the first barrel-finished Bourbon release created by Shaylyn Gammon, head of whiskey development and innovation at Coors Spirits, and marked the second finished release for the Blue Run brand.
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