EXCLUSIVE - UK: Wells and Young's offloads Kestrel to outgoing MD

By | 25 September 2012

Wells and Youngs expects the sale of Kestrel to complete on 1 October

Wells and Young's expects the sale of Kestrel to complete on 1 October

Wells and Young's has lined up the sale of its Kestrel beer brand to its MD, ahead of his departure from the UK brewer.

The company confirmed earlier today (25 September) that it is “in the final stages of negotiations” with Nigel McNally to offload Kestrel, a 9% abv lager, to McNally's new company, Brookfield Drinks Ltd. Just-drinks understands that, pending completion of the deal on 1 October, McNally will stand down from his position at Wells and Young's to concentrate on his new enterprise.

The company declined to give financial details behind the divestment, which sees the brewing, distribution and sales of Kestrel move to Brookfield.

“Whilst Kestrel has been a good brand for us, it isn’t central to our core brand portfolio,” said company chairman Paul Wells. “(McNally's) new venture means we’re able to focus our energies and resources on developing our range of distinctive beers.

“I’d like to thank him for his dedication and commitment and wish him every success in the future.”

McNally added: “I’m excited about taking ownership of Kestrel and applying some of the successes at Wells and Young’s into my own business.” 

Having joined Charles Wells in 1994 as marketing manager, McNally became marketing director before moving up to the MD role when Wells and Young’s Brewing Company was formed in 2006.

Wells and Young's acquired Kestrel from Scottish & Newcastle in 2005.

Expert analysis

Beer in the United Kingdom

In 2011 beer sales remained weak due to the ongoing and growing consumer concern about government spending cuts on jobs and incomes, which continues to constrain consumer spending. Total volume sales of beer declined by 5%, a more dramatic decline compared to the previous year and slightly sharper than the review period total volume CAGR. This was due to ongoing beer tax increases in March, with beer seeing excise duty increased two percentage points above the level of inflation at 5%. This tax...

Sectors: Beer & cider, Mergers & acquisitions

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EXCLUSIVE - UK: Wells and Young's offloads Kestrel to outgoing MD

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