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Drinks

C&C Group Acquires Stake In Scottish Drinks Wholesaler

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C&C Group Acquires Stake In Scottish Drinks Wholesaler

Bulmers parent C&C Group has acquired a 50 per cent stake in Scottish wines and spirits wholesaler Wallaces Express, in a move that will 'offer enhanced service and increased value for the on-trade across Scotland', the company said in a statement.

The 138-year-old company is Scotland's largest independent wines and spirits wholesaler, employing 295 staff, and is part of C&C's strategic expansion in the country. "This announcement is consistent with our ambition of developing a multi-beverage platform in the Scottish drinks market," said Kenny Neison, C&C Group chief financial officer.

"Whilst Wallaces Express will be run independently from our beer business, we will seek opportunities to take advantage of cross-selling for customers, particularly in wines and spirits. This partnership between two great drinks businesses will provide our customers with a one stop shop for all their alcoholic and soft drinks needs."

According to Barry Gallagher of Davy Stockbrokers, the deal is a "good strategic move" for the cider firm. "Wallaces has direct distribution to about 2,500 on-trade outlets; C&C's Scottish business has direct distribution to about 2,000 pubs. While undoubtedly there is some overlap in distribution, Wallaces' geographical scope is to the west and south of Scotland and the north of England, whereas much of C&C’s focus is around Edinburgh and Glasgow. Wallaces should help C&C to deepen its influence in Scotland and allows C&C to cross-sell more of its brands to customers through these networks."

C&C Group has yet to make a comment on the future of its newly-acquired Gleeson portfolio of wines in this country, however a statement is expected in advance of its full-year results, set to be announced on May 15. (26 March)

© 2013 - ESM: European Supermarket Magazine by Kevin Kelly

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