News

US: C&C Group acquires Hornsby's cider from E&J Gallo Winery

Most popular

Mangrove MD warns of coronavirus impact on spirits

Will coronavirus put hard seltzer in the shade?

Could coronavirus make for more caring companies?

Advice for brewers in the time of COVID-19

Coronavirus special - US Distilled Spirits Council

MORE

C&C Group is set to become the number two player in the US cider market by acquiring the Hornsby's brand from E&J Gallo Winery for an initial EUR16.4m (US$22.5m).

//i4.aroq.com/1/candc-group.jpg

The price tag could rise by a further EUR3.6m depending on the performance of Hornsby's between now and April next year. Ireland-based C&C said today (8 November) that the deal will give it a 20% volume share of the US cider market, making it the number two player behind Woodchuck Cider.

While the market is small, accounting for just 0.2% of volume sales of long alcoholic drinks (LADs), the Magners producer believes that the US holds significant potential. The market is expanding at a rate of 20% per year and currently stands at sales of between 400,000 and 500,000 hectolitres per year, it said.  

C&C's current COO, and incoming CEO, Stephen Glancey, said that the Hornsby's deal "represents a significant step towards the development of the group’s international, cider-led strategy". He added: "The transaction more than doubles our volume in a growing market; broadens the scope of our cider portfolio; and, presents significant opportunity to develop the Hornsby’s brand throughout North America.”

Launched by Gallo in 1994, Hornsby's does not have its own sales and marketing teams, although it is already distributed across the US. In 2010, Hornsby's sold 61,000 hectolitres, which translated into net sales of US$11.7m and represented low single-digit growth on the previous year, C&C said. 

Gallo, which currently produces and packages Hornsby's at its Modesto winery in California, has agreed to provide C&C with sales support on the brand for a further six months. It will provide production and distribution support for 12 months following completion of the deal.  

C&C expects that Hornsby's will fit well into its existing US business, because the brand's stronghold is on the country's west coast, compared to Magners, which mostly sells on the east coast.


Related Content

E&J Gallo follows value-growth approach with Pahlmeyer Winery purchase - just-drinks comments

E&J Gallo follows value-growth approach with Pahlmeyer Winery purchase - just-drinks comments...

Constellation Brands offloads lower-end wines to E&J Gallo in US$1.7bn deal

Constellation Brands offloads lower-end wines to E&J Gallo in US$1.7bn deal...

Anheuser-Busch InBev deal gives fiscal-2018 boost to C&C Group cider volumes - trading update

Anheuser-Busch InBev deal gives fiscal-2018 boost to C&C Group cider volumes - trading update...

The Irish connection - How C&C Group plans to rescue Magners - Focus

The Irish connection - How C&C Group plans to rescue Magners - Focus...

Oops! This article is copy protected.

Why can’t I copy the text on this page?

The ability to copy articles is specially reserved for people who are part of a group membership.

How do I become a group member?

To find out how you and your team can copy and share articles and save money as part of a group membership call Sean Clinton on
+44 (0)1527 573 736 or complete this form..



Forgot your password?