CHICAGO -- Mike's Hard Lemonade Co., owner of one of the best known malt beverage brands in the United States, is in the early stages of exploring a sale that could value it at more than $1 billion, two people familiar with the matter told Reuters.
The Chicago-based company has initiated a sale process that is likely to attract the interest of large beverage companies, the people said.
Mike's Hard Lemonade parent, Mark Anthony Group Inc., Vancouver, B.C., may decide against a sale of the company based on any offers received, the sources, who declined to be identified because the matter is not public, added.
Mike's Hard Lemonade and Mark Anthony Group did not immediately respond to the news agency's requests for comment.
Founded by British Columbia winery owner Anthony von Mandl in 1999, Mike's Hard Lemonade signature product mixes lemonade with vodka as an alternative to beer and cocktails. The company also sells alcoholic beverages in flavors such as black cherry, classic margarita, mango punch and blood orange.
Mike's Hard Lemonade has made changes to its brand within the last two years to fight off competition from fast growing rivals like Anheuser Busch InBev SA's Lime-A-Rita and MillerCoors LLC's Redd's Apple Ale, said the report.
For example, the company last year changed its packaging and rolled out flavors like Mike's Hard Peach Lemonade and a mango lemonade flavor for its Frozen Pouches product.
The company also said last June it would sell several of its flavors in smaller 8-ounce cans to appeal to more health-conscious and on-the-go consumers.
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