UK: Constellation sells Strathmore to AG Barr
Constellation Brands is to sell its Strathmore bottled water business to UK soft drinks producer AG Barr for GBP15m (US$28.1m).
The US drinks giant gained Strathmore when it acquired Matthew Clark in 1998 but has decided the water brand is no longer a key part of its business in the UK.
"Strathmore is a non-core product for us in a category in which we do not generally compete, and we believe our resources can be better utilised in support of our UK beverage alcohol portfolio," said Richard Sands, Constellation Brands chairman and CEO today (22 May).
"The benefits of owning Strathmore, which largely relate to sales through our UK wholesale business, have been protected by an ongoing supply contract with AG Barr."
Strathmore's generated net sales and operating income of GBP12.6m and GBP1.3m respectively for the year to 28 February.
The brand joins an AG Barr stable including Irn-Bru and Findlays spring water. AG Barr chief executive Roger White said: "We are extremely proud to be bringing a brand with such a strong Scottish heritage into the fold of a successful Scottish company. Strathmore is an established brand from a trusted water source that is performing well in the category and with an excellent track record in new product development.
"We believe it has exceptional potential for further growth in today's market and we are very much looking forward to rolling out a dynamic investment programme for its development in the months and years ahead."
The European Forum for Responsible Drinking (EFRD) has had to postpone its plans to publish self-regulatory guidelines on drinks sponsorship because of a failure to find consensus on the subject. Ben ...
Kicking off just-drinks' 2006 harvest reports from northern hemisphere wine regions, Chris Losh takes a look at the contrasting fortunes experienced this year by Spanish and Portuguese wine producers....
The amount spent on wine by UK consumers does not necessarily increase with age, according to research into the market....
The US association of spirits producers The Distilled Spirits Council (DISCUS) hosted a media buying summit yesterday (15 Nov) which brought together industry leaders to share best practices for respo...
Pyramid Breweries has announced that gross sales for the third quarter of 2006 stood at US$15.8m, a 10% increase on the same quarter last year....
The European Forum for Responsible Drinking (EFRD), the industry-sponsored social aspects organisation, has been forced to postpone plans to set out specific guidelines on sponsorship after the member...
Constellation Brands' CEO has described the drinks industry landscape as "a pretty target-rich environment"....
Constellation Wines' US arm is embarking on a host of festive season promotions to drive sales of five drinks brands....
- Why Scotch must drop the 'malts good, blends bad'
- Pernod's mood darkens over India - Analysis
- Heineken Q1 2017 by region - results data
- Remy Cointreau Fiscal-2017 sales - results data
- Soft drinks is losing the recycling game
- Diageo to cut 105 jobs in Scotland, 50 in Italy
- Scotch sales set to soar, despite recent struggles
- Edrington shifts innovation to US in shake-up
- TWE's Beringer Main & Vine Dry Rosé - NPD
- Pernod Ricard posts solid YTD sales jump - results
- Global Champagne and sparkling wine insights - market forecasts, product innovation and consumer trends
- Global Scotch insights - market forecasts, product innovation and consumer trends
- Battle of the Generations - The fight for iGen, Millennial, Gen X and Baby Boomer consumers
- Myanmar - ISA Country Report
- Top Trends in Hot Drinks 2017