Coors Distributing Company to Fight Constellation, Mark Anthony Contract Terminations

Coors Distributing Company (CDC), a subsidiary of Molson Coors, intends to fight the termination of its distribution agreements by Constellation Brands and Mark Anthony Brands. Constellation Brands informed CDC earlier this month that it planned to end their relationship within 30 days. Shortly thereafter, Mark Anthony Brands, the maker of White Claw, announced it would not renew its agreement with CDC, shifting its Denver distribution to Reyes Beverage Group.

CDC asserts that both suppliers' decisions to terminate their contracts without cause directly violate Colorado's beer franchise law. The company stated it is exploring all legal and commercial options to contest the contract endings. "We will fight their attempts to terminate our contracts using the wide range of legal levers available to us," a CDC spokesperson said.

Founded in 1971, CDC distributes products for 32 breweries across the Denver metropolitan area and employs over 400 people. The company views the suppliers' actions as a breach of state law designed to protect established distribution relationships.

Constellation Brands cited evolving industry service models and route-to-market capabilities as reasons for its review. The company indicated it continues to assess its distribution network to better serve retailers and consumers in the Denver market.