C&C Group extends partnership with AB InBev

Manufacturer, marketer and distributor of branded cider, beer, wine and soft drinks in Ireland and the UK, C&C Group, announced on Monday that it has entered into expanded distribution and contract brewing agreements with AB InBev UK, in respect of that company’s respective cider and beer portfolios in the UK and Ireland.

The Dublin and London-listed firm said under a new distribution agreement, AB InBev will be responsible for the sale and trade marketing of C&C’s cider portfolio - Magners, Chaplin & Corks and Blackthorn - in England, Wales, the Channel Islands and the Isle of Man, including on and off-trade national accounts.

It said the existing contract brewing arrangements with AB InBev had been renewed and extended, whereby C&C will continue brewing, kegging, bottling and canning certain AB InBev products, including Stella Artois at C&C’s Wellpark Brewery in Glasgow.

The existing distribution arrangements with AB InBev, by which C&C distributes AB InBev’s beer portfolio - Becks, Stella Artois, Budweiser and Corona - in Ireland, Northern Ireland and Scotland had been amended and reconfirmed.

No consideration was payable by either party on the signing of the Expanded Partnership Agreements, which were expected to come into effect over the coming months, and are long term, multi-year contracts.

The Expanded Partnership Agreements are expected to be earnings neutral for C&C in the first full year of operation and accretive thereafter, driven by increased volumes and value, particularly in cider in England, Wales, the Channel Islands and the Isle of Man.

“We are delighted to renew and expand the scope of our long term partnership with AB InBev, the world’s leading beverages company,” said C&C CEO Stephen Glancey.

“The agreements leverage the manufacturing, distribution and portfolio strengths of our two businesses in our core markets in the UK and Ireland.”

Glancey said C&C was excited by the increased opportunities from combining Magners and its other cider brands with AB InBev’s portfolio of beers, marketing expertise and distribution capability; particularly in England, Wales, the Channel Islands and the Isle of Man and amongst national accounts.

“Magners Original transformed cider-drinking 10 years ago and this rich heritage is resonating with consumers again as the brand is firmly back in volume growth.

“We are confident that it will flourish further within the enhanced platform that our expanded partnership with AB InBev will bring.”

He added that C&C has been manufacturing and distributing AB InBev’s beer brand portfolio in its core territories of Scotland and Ireland since the acquisition of the Tennent’s business from AB InBev in 2009.

“Today’s renewal of these agreements is testament to the strength of our distribution networks across Ireland and Scotland and our leading positions and brands in these territories; and underscores the quality and efficiency of our manufacturing facilities.”

Jason Warner, president of AB InBev UK & Ireland, said his company’s close, strategic partnership with C&C has existed since 2009 and the board was very happy to announce the strengthening of business ties.

“The new and extended contracts will utilise AB InBev’s world class distribution network to bring people in England, Wales, the Channel Islands and the Isle of Man more choice in the cider category.

“This partnership will provide our customers in both the on and off-trade with a renowned, complementary portfolio including Budweiser, Corona, Stella Artois, Goose, Camden, Magners, Chaplin & Cork’s, Blackthorn and K from AB InBev.”