C&C Group has agreed to acquire Asahi Group Holdings’ Nectar Imports wholesale and distribution business in the UK.
In a statement today (11 September), the UK-listed drinks company said it was buying the businesses for “nominal consideration”.
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
The new assets will be integrated into C&C’s Matthew Clark Bibendum (MCB) wholesale operation.
The deal is an “attractive opportunity to structurally grow the MCB business”, C&C said.
Roger White, C&C Group’s chief executive, added the deal would bring “a significant number of new customers” to MCB while delivering “immediate scale and efficiency” to the group’s operations.
The deal includes cthe lease of Nectar Imports’ depot in Hindon in Wiltshire.
As part of the agreement, MCB will assume the supply arrangements for the Fuller, Smith & Turner on-trade estate.
Asahi will also end its direct distribution services from its Griffin Brewery site in west London, which will transfer to MCB.
For Asahi, the transaction forms part of a strategy to “focus on its core strengths in brewing, brand building and consumer engagement”, according to the statement.
The Japanese brewer will retain full ownership and operational control of the Griffin Brewery, including production of London Pride.
Tim Clay, Asahi’s UK managing director, said MCB was the “right long-term home” for Nectar Imports and Asahi UK’s existing direct distribution customers following a “a thorough review of Nectar Imports and the evolving market landscape”.
“We believe this proposed agreement creates the best outcome for our customers and strengthens our route-to-market. Importantly, it allows us to sharpen our focus on what we do best: brewing exceptional beers, building premium brands and investing in future growth,” Clay added.
The agreement was announced alongside C&C’s trading for the six months to 31 August.
C&C’s net revenue declined by 3% year on year, with branded revenue up 2% and distribution revenue down 4%.
C&C expects first half underlying operating profit of between €43m ($49.8m) and €44m.
It remains on track to deliver full-year operating profit in line with market expectations, although it cautioned that market conditions remain volatile ahead of the Christmas trading period.
