Cobra brews its first profit

The group posted pre-tax profits of £4.9m on sales of £48m last year, which comes after a deal in 2009 that left the group majority owned by Molson Coors.

Cobra underwent a ‘pre-pack administration’ in May 2009 in a controversial deal that saw Molson – which brews Carling, Grolsch and Worthington’s – acquire a 50.1 per cent stake in the business for a reported £14m, while unsecured creditors lost £75m.

The business, which was founded by Lord Karan Bilimoria, moved production of the beer from Bangalore to Molson Coors’ factory in Burton last May as part of cost cutting measures following the deal.

Cobra has also been benefiting from Molson’s marketing expertise and buying power, according to the group. It spent £3m last year on a marketing campaign and said it will boost this to around £5m this year.

Adrian Davey, managing director of the Cobra Beer Partnership, said the move would help grow the brand. He said: “2011 marks a new chapter and we are very excited as Cobra moves on to the next stage of its brand evolution.”

Cobra, which was first imported into the UK in 1990 by Lord Bilimoria, claims to be the perfect accompaniment to curry because it is less fizzy than most lagers.

By 2008, it became clear that Cobra needed the help of a large brewer to succeed in the highly competitive beer market and the company unsuccessfully tried to find a buyer, including drinks giant Diageo.