Bulmers cider manufacturer C&C Group has entered into a new partnership with UK craft beer business Innis & Gunn to sell and distribute Innis & Gunn's range of beers in the on-trade sector in Ireland and the UK.
Innis & Gunn's beers will continue to be produced and packaged at C&C's Wellpark Brewery in Glasgow as part of a renewed agreement, as well as at Innis & Gunn's brewery in Perth.
The new partnership, which builds on the long-term manufacturing relationship between the two companies, which began back in 2010, will be formalised through investment in Innis & Gunn which will give C&C an equity stake of 8%. A long-term incentive scheme is also in place which will make a number of additional shares available to C&C based on performance targets being met.
Under the new partnership, C&C will increase the distribution and availability of Innis & Gunn beers in the on-trade, wholesale and free-trade channels through its distribution businesses Bulmers Ireland and Tennent's NI in Ireland, and Matthew Clark in the UK.
Innis & Gunn will continue to be responsible for all brand marketing as well as for sales and distribution to national pub chains, the off-trade and current international markets.
"The Right Partner With The Right Platform"
Innis & Gunn founder Dougal Gunn Sharp stated, "At a time when we are seeing consumer demand for our beers increasing, in-fact becoming the sixth largest Scottish drinks brand in our home market in 2020, this is a key next step in our growth strategy. C&C's strength in the on-trade across the whole of the UK and Ireland, and our long-term relationship, means we have solid foundations from which to build. C&C is the right partner with the right platform to help us accelerate our growth into these channels and seek to replicate the success the brand has enjoyed in Scotland. The partnership will also create immediate synergies enabling us to re-direct additional capital behind marketing and new product development.
"We are retaining our independence and gaining a new distribution partner which can help us to introduce our brand to a much wider audience.
"The new manufacturing agreement leaves all options on the table to allow us to build our Edinburgh Brewery when the time is right and when there is less uncertainty in the market caused by the current COVID-19 pandemic."
"Exciting"
Meanwhile, Tennent's managing director Scotland Kenny Gray commented, "This new partnership with Innis & Gunn reflects well on our brand distribution model and it is exciting to welcome them into our portfolio. They will be a strong and complementary addition which no doubt will be well received by our customers who are increasingly seeking an extended range. As an equity partner, our interests are naturally aligned to grow the brand. To that end, we will use our platforms to gain access to the larger UK and Irish markets as well as seeking to collaborate in other, new international markets where we see opportunities."
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