C&C Group has mutually agreed to restructure certain elements of its distribution agreement with AB InBev’s Budweiser Brewing Group (BBG) subsidiary.
From 1 January, C&C will reassume control and distribution of its cider portfolio – including Magners – in Great Britain, while BBG will assume control and distribution of its beer portfolio in the off-trade in the Republic of Ireland.
Since July 2020, C&C Group had held complete sale and distribution rights for the BBG beer portfolio across Ireland, while the two companies had jointly looked after marketing for brands including Budweisr, Stella Artois, Beck’s, Corona and Leffe.
Bringing sales, distribution and trade marketing responsibilities in house would “provide both companies with the opportunity to strengthen their respective brand portfolios and distribution platforms”, C&C Group said.
BBG, meanwhile, said it had an “effective distribution partnership” with C&C and remained “committed to close collaboration to ensure a seamless transition for customers”.
Brian Perkins, president of Budweiser Brewing Group, part of InBev, said: “C&C Group and AB InBev have established a valuable partnership over the years, and we will continue to build upon this across the UK and Ireland.
“We are confident about this new direction for AB InBev in the Republic of Ireland, and we are delighted to be able to leverage the full strength of our portfolio to accelerate growth in this key market.”
Ralph Findlay, C&C’s chief executive and executive chair, added: “We have a strong relationship with InBev and continuing this partnership remains a key element of our distribution plans.
“We’re excited about the opportunity to develop and invest in our Magners brand to drive growth as part of our cider portfolio across the on and off-trade in Great Britain.”
The news came alongside a trading update from C&C covering the first half of its 2025 financial year.
Sales in the six months ended 31 August 2024 were expected to have fallen by 3%, the Tennent’s and Magners brand owner said.
This reflected “growth in Matthew Clark & Bibendum” and “in-line performance” across core and premium brands, offset by the disposal of its non-alcoholic beer business in Ireland, as well as lower contract brewing volumes and softer cider volumes in Great Britain, it added.
Tennent’s had achieved “volume and value share growth” in the past 12 weeks, owing to marketing activations around Euro 2024, C&C Group said.
Posher tipples including Menabrea and Orchard Pig “continued to perform strongly, reporting double-digit revenue growth”. Bulmers, meanwhile had “outperformed the cider market in Ireland”.
Operating profits were expected to be between €39m-€41m (£33m-34.6m), reflecting the “‘phased rebuilding’ of profitability” after a botched software upgrade last year cost the business around €22m, C&C Group added.
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