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C&C expands partnership with AB InBev

By BFN News | 07:24 AM | Monday 12 December, 2016

C&C Group has entered into expanded distribution and contract brewing agreements with AB InBev UK for their respective cider and beer portfolios in the UK and Ireland. Key points of the expanded partnership agreements: - under a new distribution agreement AB InBev will be responsible for the sale and trade marketing of C&C's cider portfolio (including Magners, Chaplin & Corks and Blackthorn) in England, Wales, the Channel Islands and the Isle of Man, including on and off-trade national accounts; - the existing contract brewing arrangements with AB InBev have 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 (including Becks, Stella Artois, Budweiser and Corona) in Ireland, Northern Ireland and Scotland have been amended and reconfirmed; - no consideration is payable by either party on signing of the Expanded Partnership Agreements, which will come into effect over the coming months, and are long term, multi-year contracts; - the expanded partnership agreements are expected to be earnings neutral 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. Chief executive Stephen Glancey said: "We are delighted to renew and expand the scope of our long term partnership with AB InBev, the world's leading beverages company. The agreements leverage the manufacturing, distribution and portfolio strengths of our two businesses in our core markets in the UK and Ireland. "AB InBev will represent Magners and our other cider brands in England, Wales, the Channel Islands and the Isle of Man and to UK national accounts alongside their portfolio of leading global beer brands. We will continue to sell and distribute AB InBev's beer brands into the independent on and off-trade in Scotland, Northern Ireland and the Republic of Ireland alongside our 'local champion' brands ? Tennent's, Magners and Bulmers and our growing portfolio of speciality beers and ciders. We have also renewed and extended our existing contract manufacturing arrangements to brew and package an increased volume of AB InBev's beer portfolio at our Wellpark Brewery. "We are excited by the increased opportunities from combining Magners and our other cider brands with AB InBev's leading 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. "We have been manufacturing and distributing AB InBev's beer brand portfolio in our 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." Story provided by

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