C&C appoints Pabst for US cider sales
Prior to this agreement C&C handled US distribution itself.
The agreement between the C&C Group and PBC takes effect from 1st March 2016.
Under the terms of the long-term partnership agreement, PBC will have the exclusive license to distribute, market and sell all of C&C’s cider brands in the US including premium craft cider brands Woodchuck, Gumption, Wyder’s and Hornsby’s and all of C&C’s imported cider brands, including Magners and Blackthorn.
Under the terms of the partnership, PBC also has a long-term option to acquire C&C’s US cider brands and related assets subject to any regulatory approvals. “Consideration will be determined at the time of any exercise of the option” stated the company recently, however it will at least be consistent with the current carrying value of the assets including C&C’s cidery in Vermont which it purchased in 2013 and which is America’s largest facility dedicated to cider production.
This partnership with PBC substantially strengthens C&C’s route to market in the US by leveraging PBC’s extensive and successful distribution and sales platform.
“PBC is a leading player in the US LAD market and the strength of their portfolio and market access will help us strengthen our position in the US cider category,” confirmed C&C Chief Executive Stephen Glancey, “We expect cider’s share of beer to grow double-digits and to reach 3% over the next five to seven years.”