Canada: Molson Coors and AB InBev agree to shut down JV on Modelo brands distribution earlier than planned

Molson Coors Brewing announced earlier this week that it had agreed to exit a JV with AB InBev early – March 1 2014 rather than January 1 2018 – that covers the distribution of Grupo Modelo’s brands in Canada.

AB InBev will pay Molson Coors C$70 mln ($67 mln) to terminate the deal, while doubts persist over the future of the latter’s licensing deal with SABMiller (via MillerCoors) to distribute its brands in Canada.

Molson Coors won a temporary injunction back in June to continue managing the SAB brands ahead of a full court hearing over the dispute – SAB blames low sales volumes and missed targets on its move to terminate the licensing agreement – after Molson Coors sued its partner back in January.

08 November, 2013