UK: Molson Coors, C&C Group shake up Magners distribution link-up

Molson Coors and C&C Group have revised their distribution agreement over C&C's Draught Magners cider brand in the UK.

The two companies confirmed yesterday (26 November) that Molson Coors Brewing Company (UK) has agreed with C&C to enter a revised five-year contractual arrangement that retains Molson Coors (UK)'s exclusive rights to distribute Draught Magners in the England and Wales free on-trade (FOT).

C&C, meanwhile, will take over distribution for the brand in Scotland and the multiple on-trade (MOT) from 1 January.

The drinks firms agreed last year that Molson Coors (UK) would be Draught Magners exclusive distributor throughout the UK on-trade, excepting Northen Ireland.

However, in September, C&C completed the purchase of Anheuser-Busch InBev's brewing operations in Northern Ireland, Republic of Ireland and Scotland, leading Molson Coors (UK) to look to revise their partnership.

Molson Coors' UK portfolio includes Carling, which is in direct competition in Scotland with the market leading Tennent's lager brand - part of A-B InBev's former portfolio in the country.

"Molson Coors (UK) track record in creating effective brand-building partnerships and strong routes to market were key to C&C Group's choice of exclusive partner in developing draught Magners in the UK," said Tony Gibbons, director of sales at Molson Coors (UK).

"We have demonstrated our ability to deliver distribution growth in the UK FOT. We look to build on this momentum under the new agreement."