C&C and AB InBev restructured distribution agreements in the UK and Ireland

The Irish beverage manufacturer C&C Group and the brewing giant Anheuser-Busch InBev have announced plans to realign their distribution and marketing agreements in the United Kingdom and Ireland. Dublin-based C&C, known for brands such as Tennent's, will assume control and distribution of its cider portfolio in the UK, including brands such as Magners and Bulmers. Simultaneously, AB InBev will reclaim the management and distribution of its beer offerings for the off-trade sector in the Republic of Ireland. Both changes will take effect from January 1. Since 2009, a distribution agreement has been in place between C&C and AB InBev, under which C&C was responsible for the production and distribution of certain brands of the US giant. In 2020, the group also took over brewing and selling Budweiser and Bud Light in Ireland. Since 2016, the Leffe brewer had directed the sales and marketing activities of C&C's cider brands in the UK. According to a statement from C&C Group, the internal assumption of distribution, trading, and marketing responsibilities offers both companies the opportunity to strengthen their respective brand portfolios and distribution platforms. Brian Perkins, President of AB InBev subsidiary Budweiser Brewing Group, confirmed: "C&C Group and AB InBev have built a valuable partnership over the years." Perkins added: "We are confident about this new path for AB InBev in the Republic of Ireland and look forward to leveraging the full strength of our portfolio to accelerate growth in this important market." AB InBev also stated that the distribution partnership with C&C remains effective and that they are committed to close collaboration. In Northern Ireland, C&C will continue to distribute AB InBev's beer brands, the Hoegaarden producer told Just Drinks. Ralph Findlay, CEO of C&C, added: "We have a strong relationship with AB InBev and the continuation of this partnership remains an essential part of our distribution plans. We look forward to investing in our Magners brand and driving the growth of this cider in the UK." The news was announced by C&C as part of a trading update for the first half of the fiscal year 2025. For the first six months up to August 31, the Addlestones cider owner expects a 3% year-on-year decline in net sales. The underlying operating profit is projected to be between €39 million and €41 million, which mainly reflects the staggered restoration of distribution profitability following last year's ERP disruptions. The company's "premium beer and cider brands" recorded double-digit sales growth during the same period, particularly driven by the Menabrea beer and Orchard Pig cider brands. C&C's wholesale businesses, Matthew Clark and Bibendum, are also expected to achieve 2% growth during the half-year period, as the number of distribution locations in August 2024 increased by 10% year-on-year. Despite "challenging" market conditions, the company remains focused on "improving efficiencies, simplifying operations, attracting customers, and expanding brand distribution." The objective of €100 million operating profit by fiscal year 2027 remains intact. The trading update also announced that the recruitment of a new CEO has begun, following the resignation of former CEO Patrick McMahon in June, due to financial errors in his previous role as CFO.