Bulmers owner ends agreement with Pabst Brewing in the US
Bulmers owner C&C is to end its distribution agreement with Pabst Brewing in the US from 1 April.
In an announcement today, C&C said that its US wholly owned subsidiary, Vermont Hard Cider, would resume full responsibility for the sales and marketing of the group’s portfolio of cider brands in the US including Woodchuck, Wyders and Magners.
The termination of the agreement with Pabst Brewing comes less than two years after it first entered into the agreement.
Last year C&C's US business constituted around 4pc of group’s volumes and less than 1pc of its operating profits.
In its statement to the stock exchange, C&C said that both parties recognised that the current market dynamics require a different approach that concentrates on Vermont’s core markets.
It is not anticipated that the move will result in any material transition costs for C&C, or a change to its financial performance or prospects in the US arising out of these new arrangements.
Meanwhile C&C’s partnership with Pabst in the UK will continue.
In December C&C announced that it had closed the acquisition of a stake in a UK pub chain, Admiral Taverns.
C&C announced in September that it would buy a 47pc stake in Admiral. While C&C's Bulmers cider and Tennants lager are market leaders in Ireland and Scotland, the Admiral deal will give it a greater direct-to-market platform in the key English market it has struggled to crack.
C&C agreed to pay £37m (€40.2m) for its stake in Admiral.