FDBusiness.com

C&C Group to Acquire US Cider Marker For $305 Million

 Breaking News
  • Lidl Becomes the UK’s Seventh Largest Supermarket The latest grocery market share figures from Kantar Worldpanel, for the 12 weeks ending 13 August 2017, show Lidl has increased its market share to a new record high of 5.2% – up 0.7 percentage points year on year – to become the UK’s seventh largest grocer. Fraser McKevitt, head of retailer and consumer insight at [...]...
  • 2 Sisters Plans Investment in Welsh Plant Britain’s biggest food manufacturer, 2 Sisters Food Group, has announced plans to expand supply from its Welsh processing facility in Merthyr Tydfil. The £1.4 million investment in the beef and sheep plant will be spent on modernising the beef boning hall and improving efficiency, quality and process control. Ranjit Singh, chief executive of 2 Sisters Food [...]...
  • Towards a Fairer Food Supply Chain – European Commission Asks For Input The European Commission is launching an EU-wide public consultation on how to make the EU food supply chain fairer. Farmers, citizens and other interested parties are invited to share their views on the functioning of the food supply chain through an online consultation that runs until 17 November. There are indications that the added value [...]...
  • Bord Bia Leads First Irish Presence at Japan International Seafood & Technology Expo Bord Bia (Irish Food Board) and Irish seafood exporters will exhibit for the first time at Japan International Seafood and Technology Expo in Tokyo  determined that its extensive market insight and promotion activity in South East Asia will lead to new business opportunities. The Bord Bia seafood strategy of expanding into emerging markets and maintaining its strong position in [...]...
  • New Video Guide to WCB Universal Twin Screw Pumps SPX FLOW is committed to providing excellent support and ensuring customers get the most from their equipment. As part of this regime, a series of maintenance videos have been created which provide clear, step-by-step guides to the correct maintenance procedures for SPX FLOW pumps, valves and other products. Properly maintaining equipment is an essential part [...]...
  • World’s Most Modern Snack Plant Begins Operations in Finland The world’s most modern dairy snack plant has commenced operation at Valio Riihimäki in Southern Finland. The snack plant is the largest single investment in Valio’s history. Construction of the new snack plant began in 2014 and took about three years. The area of the plant building is approximately 20,000 square metres. The plant is [...]...

C&C Group to Acquire US Cider Marker For $305 Million

C&C Group to Acquire US Cider Marker For $305 Million
October 24
11:53 2012

C&C Group, the Irish and UK branded cider and beer producer, is acquiring the Vermont Hard Cider Company, an independent, premium, craft cider company in the US, for $305 million (Eur233 million). VTHCC owns a leading US cider brand, Woodchuck, a well-invested cidery inVermontand a national distribution platform. The acquisition will accelerates C&C’s growth prospects, increasing its exposure to the US cider category, which grew approximately 60% in the first six months of 2012.

The business being acquired is expected to generate about $15 million of EBITDA for the 12 months ending 31 December 2012. The deal is expected to be immediately earnings accretive.

Stephen Glancey, chief executive of C&C Group, says: “This transaction transforms our international cider business and accelerates our growth prospects. We intend to invest in the company to capitalise on the growth opportunities presented by this business.”

C&C has exported its Magners cider brand into the US for over a decade. In 2011, C&C acquired the Hornsby’s brand, on the US West Coast, as a first step in building a presence in domestic US cider.

However, while C&C is expanding its international operations, its domestic business faces challenging trading conditions in the UK and Ireland. In the the six months ended 31 August 2012, C&C Group reported a 2% fall in net revenue to Eur263.4 million and a 2.7% decline in operating profit before exceptional items to Eur65.6 million, as strong performances from the Tennent’s beer business and the international division helped to offset weak core cider markets.

International volume growth, including acquisitions, was 53%, representing 9% of the group’s total branded volumes. Tennent’s was successfully launched in several new markets including Italy, Russia and Ukraine.

“Despite a very challenging trading and economic backdrop, the group’s results for the period demonstrate the resilience of our business model with a marginal operating profit decline of 2.7%. While our core cider brands Magners and Bulmers both saw volume declines in the period, other parts of the business performed well,” comments Stephen Glancey. “The Tennent’s brand continues to outperform with net revenue and operating profit growing ahead of the Scottish beer market. Our international business, including acquisitions, continues to grow at an exciting pace, with volumes increasing by over 50%.”

About Author

mike

mike

Related Articles



Food & Drink Business Conference & Exhibition 2016

Upcoming Events

  • September 11, 2017drinktec
  • September 13, 2017FI Asia
  • September 19, 2017PROCESS EXPO 2017
  • September 22, 2017Global Summit on Food & Beverages
AEC v1.0.4

The Magazine

F&D Business Preferred Suppliers

Advertisements