C&C Ends Agreement With Pabst For US Cider Portfolio
Irish-based drinks company C&C Group has announced that its US subsidiary, Vermont Hard Cider Company, will resume full responsibility for the sales and marketing of the group's cider brands in the US.
From 1 April 2018, C&C will end its current arrangement with Pabst Brewing Company, and Vermont Hard Cider will become responsible for the company's US cider portfolio, which includes brands such as Woodchuck, Wyder's and Magners.
C&C says that changes to its distributor network are expected to be limited, adding that the company's partnership with Pabst in the UK will continue.
In 2017, C&C's US business accounted for around 4% of group volumes and less than 1% of operating profits.
The group said that it does not anticipate any transitional costs or changes to its financial performance in the US arising from the new arrangements.
In the first half of its 2018 financial year, C&C Group reported that revenues had fallen by 6.8%, to €273.1 million, as cider sales continued to struggle.
C&C will post its full-year trading update next month.
© 2018 European Supermarket Magazine – your source for the latest retail news. Article by Sarah Harford. Click subscribe to sign up to ESM: The European Supermarket Magazine.