Peach Pub Company gets "significant" investment from Molson Coors

Molson Coors has made a “significant” investment in Peach, alongside a supply deal with the pub operator, as it eyes expansion of its 15-strong estate.

Peach co-founder Hamish Stoddart revealed that the initial funding of half a million pounds could be extended later.

He said the deal “does allow us to grow, without expanding bank funding, at three sites per year”, adding that the company has “a couple [of sites] lined up”.

The funding is effectively in the form of a loan, and Stoddart explained that the agreement means Peach will stock a set number of products from Molson Coors but retains the right to serve brands from other producers.

This is unlike traditional brewery loans, which typically involve a supply tie.

“It’s a bit of a hybrid deal that we came up with,” Stoddart told M&C Report .

“What was absolutely key to us was that we continued to be free of tie, and we can chose to bring the best for our market place.

That’s unusual because normally we would find investments are tied to less flexible commitments from the customer.”

David Hood, Molson Coors regional director, said: “This is not an ordinary brewery deal, it’s far more.

Having worked with Peach in the past, we were already familiar with the way they run their pubs and how high the bar is set.

We were able to arrange a deal which was both intelligent and flexible; and arrived at an innovative arrangement that’s mutually beneficial and where each side can learn from the other for a long term win-win partnership.”

Peach opened two pubs in 2011: the White Horse in Harpenden and Brookmans in Brookmans Park.