US sale off table as C&C pulls distribution deal

US sale off table as C&C pulls distribution deal

By Geoff Percival

Drinks group C&C has prematurely pulled the plug on its US distribution deal with brewer Pabst, firmly putting paid to any near-term sale of the Irish cider-maker’s American operations.

Pabst Brewing Company is the world’s largest American-owned brewer. It signed up as exclusive American distributor of C&C’s US cider brands and imported labels, such as Magners and Blackthorn in 2015.

Despite the deal including a long-term option for Pabst Brewing Company to buy C&C’s US assets, the Irish group poured cold water on that outcome last year — largely based on it writing down the value of its struggling US operations by €279m over two years.

C&C is chiefly known for its twin Bulmers/Magners cider brands and Tennent’s lager.

Yesterday, it announced the development, saying it was a mutual agreement which will have no material effect on C&C’s balance sheet.

C&C will continue to distribute Pabst Brewing Company’s products in the UK, but C&C’s wholly-owned north American subsidiary, the Vermont Hard Cider Company, will undertake all distribution work in the US.

It is understood that C&C is not looking to outsource its US distribution to another external source.

“Both parties recognise that current market dynamics require a different approach that concentrates on Vermont Hard Cider Company’s core markets,” C&C said.

More in this Section

Cork supermarket recognised for autism awareness initiatives in international awardsCork supermarket recognised for autism awareness initiatives in international awards

OBR warns no-deal Brexit could push UK economy into recessionOBR warns no-deal Brexit could push UK economy into recession

Asos warns on profits over warehouse problemsAsos warns on profits over warehouse problems

Warning economy close to overheating; think tank recommends taxing the richWarning economy close to overheating; think tank recommends taxing the rich


Lifestyle

Breanndán Ó Beaglaoich will not let a day pass without his ritual dip in the sea, which he describes as the best anti-depressant ever, says Lorna Siggins.Taking the plunge has a depth of benefits

10% of women suffer from it worldwide.As Alexa Chung reveals she has endometriosis, here’s everything you need to know about the condition

Pinnies, cookie cutters and wooden spoons at the ready.Food projects to do with the kids this summer

Stop. Climbing. Uluru.As tourists rush to climb Uluru despite an incoming ban – 5 ways to enjoy the rock respectfully

More From The Irish Examiner