(Alliance News) - Anheuser-Busch InBev NV's Budweiser division has ended its Irish beer distribution deal with Diageo PLC and has instead awarded the contract to C&C Group PLC, according to Dublin-based drinks distributor C&C.
C&C said Wednesday that Budweiser Brewing Group UK&I, a trading name of AB InBev UK Ltd, has expanded its existing multi-year partnership with C&C to include exclusive distribution rights of Budweiser and Bud Light for the island of Ireland, meaning the Republic plus Northern Ireland.
"With the addition of Budweiser and Bud Light, from July 1, 2020, C&C will have responsibility for the sale and distribution of Budweiser Brewing Group's complete beer brand portfolio across Ireland," the Bulmer's cider maker said.
C&C and Budweiser Brewing will collaborate on the marketing of the beer portfolio which also includes Stella Artois, Beck's, Corona, Leffe and Hoegaarden.
FTSE 250-listed C&C has been working with Budweiser Brewing since 2009 and has been responsible for brewing and distributing a selection of the brewer's brands in Scotland, Northern Ireland and the Republic of Ireland. The expanded partnership will see the kegging of Budweiser in Clonmel, a town in County Tipperary, Ireland.
Tom McCusker, managing director of C&C Group Ireland, said: "This agreement marks an exciting new phase in our partnership with Budweiser Brewing Group. With a portfolio of some of the world's most iconic beer brands, we look forward to optimising the portfolio and distribution strengths of our two businesses for the benefit of our mutual customers across Ireland".
Budweiser Brewing President Paula Lindenberg said: "This deal, part of our wider expansion strategy, will utilise C&C's expertise across Ireland to bring our loved brands, now under one unified portfolio, to even more customers and consumers."
Diageo Ireland Country Director Oliver Loomes said: "Budweiser Brewing Group and their team have been fantastic partners over the years and I am proud of the work we have done together to build Budweiser into one of the most successful beer brands in Ireland. We will of course continue to brew, market and distribute Budweiser until the end of June and wish the team at Budweiser Brewing Group the very best in the future as they forge ahead with their plans."
Shares in C&C were up 1.2% at 334.00 pence each in London on Wednesday afternoon, while Diageo was down 0.2% at 2,815.00p each. AB InBev shares in Brussels were down marginally at EUR51.25 each.
By Tapan Panchal; tapanpanchal@alliancenews.com
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