Deal could boost Magners markets

IRISH drinks group C&C could use its newly cemented strategic agreement with industry giant, Anheuser Busch-InBev (ABI) to boost its Magners cider brand in international markets, over the long-term.

The group’s shareholders yesterday formally approved C&C’s previously announced €205 million acquisition of ABI’s Irish, Northern Irish and Scottish divisions – the chief assets of which are the Tennent’s lager brand and the Glasgow-based Wellpark Brewery where the drink is brewed.

The Competition Authority here passed the deal last week.

In total, 99.85% of shareholder approval was received, yesterday, according to C&C.

John Dunsmore – C&C’s chief executive for the past nine months – said that the deal could act as a route to market for Magners in new territories, in time.

However, as well as saying that C&C would be open to making more acquisitions, Mr Dunsmore said that the immediate focus – with regard to the group’s cider business – would be on boosting Magners’ market share in the British market.

At the group’s annual general meeting, last month, Mr Dunsmore said that Sweden and Finland were two new markets at which Magners could be targeted.

At the time he said that market entry there could be gained within the next three years, but the move was still at the “drawing board” level.

The group’s new management has also said that it is open to exploring future product opportunities within the cider sector, in the long-term, though not necessarily under the Bulmers/Magners brand name.

C&C’s deal with ABI also grants it the distribution rights on the island of Ireland and in Scotland for a number of brands such as Stella Artois, Beck’s, Leffe and Hoegaarden, as well as for Budweiser in Scotland and Northern Ireland.

Diageo has the distribution rights for the Budweiser brand in the Republic.