Molson Coors Brewing announced Monday it has bought a stake in L.A. Libations, a drink company and incubator that makes products like turmeric seltzer and aloe water.
As part of the deal, Molson Coors will receive a stake in new products created by L.A. Libations and the option to purchase new brands in full. The brewer will also get two seats on L.A. Libations' board.
Financial terms were not disclosed. People familiar with the matter said that Molson Coors is taking a 49% stake. Coca-Cola previously held a 25% stake in L.A. Libations, but the companies' partnership ended May 31.
The deal comes as Molson Coors and its rivals grapple with falling alcohol consumption — particularly beer. Global alcohol consumption fell 1.6% in 2018 to 27.6 billion cases, according to data from IWSR, which tracks alcohol trends.
Molson Coors said last month it will drop "Brewing" from its name next year and instead call itself "Molson Coors Beverage Company." The company has already started branching out beyond beer. It bought Clearly Kombucha last year and launched canned wine spritzers and an alcoholic cold brew in partnership with La Colombe.
Molson Coors has been working with L.A. Libations for the last year to expand Clearly Kombucha.
Shares of the brewer, which has a market value of $11.3 billion, were trading down about 1% on Monday afternoon. The stock is down more than 7% year to date.
Correction: This report was revised to correct that Coke's partnership with L.A. Libations ended in May.