UPDATE: UK: Young's to merge with Charles Wells
Wells & Young's is aiming to become the UK's largest supplier of speciality beer, according to the man set to head the newly-created brewer.
Nigel McNally, due to assume the position of managing director at Wells & Young's, told just-drinks today (23 May) that the merger of brewers Young's & Co. and Charles Wells had created a "major force in the UK brewing industry".
Wells & Young's will assume all of the brewing, wholesaling and distribution rights of both brewers, inheriting a stable of brands including Young's Bitter and Bombardier.
Wells & Young's will also gain the Charles Wells' UK licences to Red Stripe, Kirin and Corona. The two companies' combined volumes will stand at around 400,000 barrels with Young's accounting for about a quarter.
"We are the clear number two supplier in speciality beer - and by speciality beer, I mean speciality cask ale alongside speciality premium lager - and we have the ambition to become number one," McNally said. He added that Wells & Young's was targeting top spot "within two to three years".
InBev UK, which owns a stable including Hoegaarden and Leffe, is the country's largest supplier of speciality beer.
McNally said the deal gave the company a "very balanced" portfolio of brands, noting that Wells & Young's would own the fastest-growing standard ale, Young's, alongside Bombardier, the fastest-growing premium ale. Wells & Young's remained "keen" to add to its licensed portfolio and "would look at every opportunity", McNally said.
He added: "(The merger) was a meeting of minds between two businesses with a strong heritage in brewing, it allows Young's to remain vertically integrated and means they will bring their crack brewing team to Bedford. It benefits both parties."
Wells & Young's will be based at the Charles Wells site in Bedford with Young's in talks to sell its Ram Brewery in Wandsworth, south-west London. Job losses would be "kept to a minimum", McNally said, with jobs likely to be created at Bedford.
Charles Wells will hold a 60% stake in the new brewer with Young's holding the remaining 40%.
Goldman Sachs has raised its price target for the global brewer InBev....
AmBev is about to launch a share buyback programme....
Kirin Brewery has launched a friendly bid to buy a majority stake in wine company Mercian Corp....
San Miguel Corp has reported a strong set of figures for the year so far....
Brewing giant InBev has dismissed accusations that Belgian executives are being pushed out of the company in favour of managers from Latin American unit AmBev. InBev, which was formed in a 2004 merger...
InBev UK has launched a nationwide advertising campaign for its Peeterman Artois brand....
Investment bank Morgan Stanley has raised its price target for InBev. The bank said that the Belgian beer maker's third quarter results had been ahead of its expectations....
Belgian-based brewing giant InBev has posted a 34% rise in net profit to EUR479m(US$612m) for the third quarter, on the back of strong sales growth in Latin America and Eastern Europe....
- Is Diageo approaching its "Et tu, Brute" Moment?
- Diageo Q4 & FY - Preview
- Has Diageo added Beer to its 'Non-Core' List?
- SABMiller, Carlsberg, Heineken: Poland's beer itch
- Diageo, Heineken and NBL in South Africa & Namibia
- NPD: Tomatin Contrast, Cù Bòcan
- Diageo, Heineken end South Africa, Namibia JV
- Diageo comm's director latest to leave
- Diageo hit by SEC investigation in US
- Pernod launches pomegranate whisky drink
- Global gin insights - market data, product innovation and consumer trends research
- Global rum insights - market forecasts, product innovation and consumer trends research
- Global Tequila insights - market forecasts, product innovation and consumer trends research
- Global cachaca insights - market data, product innovation and consumer trends research
- Global non-Scotch whiskies insights - market forecasts, product innovation and consumer trends research