C&C Group Regulatory News (CCR)

11 Dec 2015 07:52

C&C Group Announces Long-Term Distribution Partnership with Pabst Brewing Company

Partnership positions Vermont subsidiary to participate in US cider category growth

Adds strong cider brands to PBC’s growing US portfolio

C&C Group plc announces, in conjunction with US wholly owned subsidiary, Vermont Hard Cider Company, an exclusive long term partnership agreement with Pabst Brewing Company (“PBC”), the world’s largest American owned brewer, for the sale and distribution of C&C Group’s cider brands within the United States (US). The agreement between C&C Group and PBC will take effect as of 1 March, 2016.

US Cider Partnership

Under the terms of the Partnership, PBC will have the exclusive license to distribute, market and sell all of C&C’s cider brands in the US, including premium craft cider brands Woodchuck, Gumption, Wyder’s and Hornsby’s and all of C&C’s imported cider brands, including Magners and Blackthorn.

PBC’s sales and national account organisations will assume responsibility for sales of the full portfolio of C&C cider brands to distributors and retailers in the US. PBC has proven expertise in successfully launching and scaling brands in the US market including building its flagship Pabst Blue Ribbon into a leading beer brand; and, more recently, leading the highly successful national roll out of Small Town Brewery’s Not Your Father’s Root Beer.

“PBC is a leading player in the US LAD market and the strength of their portfolio and market access will help us strengthen our position in the US cider category,” said Stephen Glancey, C&C Group plc CEO. “We expect cider’s share of beer to grow double digits and to reach 3% over the next 5-7 years. We have a truly unique asset in the US market with our Vermont cidery and are very proud of the heritage and craftsmanship behind our domestic and imported cider brands. We now have the best partner to capitalise on the potential for Woodchuck, Gumption, Wyder’s and Magners in the US market.”

“We are honoured to add Vermont's great ciders to our portfolio” said Eugene Kashper, Chairman and CEO of Pabst Brewing Company. "This partnership is another key milestone as we look to collaborate with independent brand owners to build a best-in-class portfolio of craft and import brands. We are thrilled to be working with the team in Vermont and I am confident that together we will be able to return these rich heritage brands to growth."

Option to Acquire US Cider Brands and Related Assets

C&C Group will retain full ownership of its US Cider Brands and related assets, including the cidery in Vermont, America’s largest facility dedicated to cider production; and, the distribution rights for the US Cider Brands in all markets outside the US.

The Partnership substantially strengthens C&C’s route to market in the US by leveraging PBC’s extensive distribution and sales platform. The overlap of Vermont's and PBC's distribution networks, combined with PBC’s proven marketing activation capabilities will allow for a smooth integration effort.

Under the terms of the Partnership, PBC has a long term option to acquire C&C Group’s US Cider Brands and related assets, subject to any regulatory approvals. Consideration will be determined at the time of any exercise of the option; however, it will at least be consistent with the current carrying value of the assets.

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About C&C Group plc

C&C Group plc is a manufacturer, marketer and distributor of branded cider, beer, wine and soft drinks. The Group manufactures Bulmers, the leading Irish cider brand, Magners, the premium international cider brand, Gaymers cider and the Shepton Mallet Cider Mill range of English ciders and the Tennent's beer brand. C&C Group also owns Woodchuck and Hornsby’s, two of the leading craft cider brands in the United States. The Group’s Irish wholesaling subsidiary, Gleeson Group, owns and manufactures Tipperary Water and Finches soft drinks. The Group also distributes a number of beer brands in Scotland, Ireland and Northern Ireland, primarily for Anheuser-Busch Inbev, and owns Wallaces Express, a Scottish drinks wholesaler.

For more information about C&C Group plc, please visit: www.candcgroupplc.com.

About Vermont Hard Cider Company

Vermont Hard Cider Company, LLC, located in Middlebury, Vermont, is a leading hard cider producer in the United States, including Woodchuck Hard Cider and importer of Magners Irish Cider. Vermont Hard Cider Company handcrafts and manages all levels of quality control in Middlebury, VT by employing a team of cider makers with over 30 years of combined experience directly in cider making and a team devoted exclusively to producing, marketing, and selling hard cider.

For more information about Vermont Hard Cider Company, please visit: www.woodchuck.com.

About Pabst Brewing Company

Since 1844, Pabst Brewing Company has been American-owned and operated, and is North America's largest privately held brewing company. Pabst's portfolio includes iconic brands with deep ties to America's heritage, such as its flagship Pabst Blue Ribbon and others such as Ballantine IPA, Lone Star, Rainier, Schlitz, Old Style, National Bohemian, Stag, Stroh's, and Old Milwaukee.

For more information about Pabst, please visit: www.pabstbrewingco.com.

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