FDBusiness.com

C&C Group Acquires Number Two US Cider Brand

 Breaking News
  • Parmalat Acquires Canadian Natural Cheese Division of Kraft Heinz For €1.1 Billion Parmalat, the Italian dairy group, is acquiring Kraft Heinz Canada’s division that produces and markets Kraft’s natural cheese products, mainly under the Cracker Barrel, P’tit Quebec and aMOOza brands, for C$1.62 billion (€1.1 billion). Net revenue generated by the business being acquired amounted to about C$560 million (€374 million) in 2017. The acquired business includes [...]...
  • Lantmännen Unibake Expands in Australia The international bakery group Lantmännen Unibake has signed an agreement to acquire the Australian pastry manufacturer Bakery du Jour. The acquisition is an important step to expand Lantmännen Unibake’s global footprint. Family-owned Bakery du Jour was founded more than 20 years ago and is a leading supplier of premium pastry products to major Australian retailers as [...]...
  • Leading Global Online Grocery Markets to Create a $227 Billion Growth Opportunity by 2023 Ten leading global online grocery markets are predicted to experience combined growth of $227 billion, at an annual rate of 20%, by 2023, according to new figures unveiled by IGD. As the global leader in grocery eCommerce, China will grow at a 31% CAGR over the next five years, taking market share from 3.8% to 11.2%. [...]...
  • Agr’s New Multi-head Coating Measurement System Performs Body and Finish Coating Measurements in One Operation Agr International recently announced the introduction of the Combined Coating Measurement System (CCMS) for measuring metallic coatings on both the finish and body regions of glass containers. This totally new device provides operators with a one-stop, single operation testing station for measuring tin oxide coatings applied to the container during the production process. This system utilizes [...]...
  • PepsiCo to Acquire Pipers Crisps PepsiCo intends to acquire premium crisps brand Pipers, subject to approval from the UK Competition and Markets Authority. PepsiCo plans to accelerate the growth of the Pipers business in the UK and will continue to develop the export of its products. The kettle-cooked, gourmet crisp brand will complement PepsiCo’s existing savoury snacks portfolio, with Pipers’ award-winning [...]...

C&C Group Acquires Number Two US Cider Brand

C&C Group Acquires Number Two US Cider Brand
November 09
16:32 2011

UK and Irish beverages producer C&C Group has acquired Hornsby’s, the number two domestic US cider brand, from E & J Gallo Winery, for a cash consideration of up to €20 million ($27.5 million). The deal makes C&C the second ranked cider company in the US with an estimated 20% share of a rapidly growing category. The US long alcohol drinks (LAD) market is one of the largest in the world with significant growth potential for cider – cider’s current share of LAD is estimated to be 0.2%.

 

Hornsby’s complements C&C’s Magners Irish cider brand in the US market. Magners is primarily an on-trade and East Coast brand, whereas Hornsby’s is primarily an off-trade and West Coast brand. C&C will also benefit from a broader portfolio through the combination of a US domestic cider brand with strong brand equity and a premium imported craft Irish cider brand. The deal also presents a significant opportunity for C&C to invest in and grow Hornsby’s volumes in the US and the potential to develop export led growth of the brand.

 

In the year ended 31st December 2010, Hornsby’s volumes were 61,000 hectolitres and net revenue was $11.7 million. The business is currently delivering low single-digit revenue and volume growth. Based on year to date performance, the business is expected to generate a contribution after marketing of Eur3.6 million in the 12 months to December 2011 before estimated overheads of approximately Eur1.4 million.

 

Hornsby’s is produced and packaged at Gallo’s winery in Modesto, California. The business does not have its own dedicated sales and marketing resource and as a result, Hornsby’s is managed within the context of the entire Gallo portfolio of brands. Gallo is the largest winery in the world.

 

According to Stephen Glancey, C&C’s chief executive designate, the acquisition of Hornsby’s “represents a significant step towards the development of the group’s international, cider-led strategy.” He adds: “The Transaction more than doubles our volume in a growing market; broadens the scope of our cider portfolio; and, presents significant opportunity to develop the Hornsby’s brand throughout North America.”

 

C&C estimates that annual US sales of cider are currently 400,000 to 500,000 hectolitres. US cider category volumes are growing at approximately 20% per annum.

About Author

mike

mike

Related Articles



Food & Drink Business Conference & Exhibition 2016

Upcoming Events

  • November 21, 2018expoSE European Asparagus and Strawberry Fair
  • November 27, 2018Health Ingredients Europe
  • November 28, 2018FOOD & LIFE
  • December 3, 2018P&P 2018
AEC v1.0.4

find food jobs

The Magazine

F&D Business Preferred Suppliers

New Subscriber





Subscribe Here



Advertisements