C&C Group and Anheuser-Busch InBev are planning to restructure their sales, marketing and distribution deals in Great Britain and Ireland.
Dublin-based C&C, home to brands including Tennent’s, intends to “reassume control and distribution” of its cider portfolio in Great Britain, which includes the brand Magners.
AB InBev, meanwhile, will take back managing distribution of its beer range for the off-trade in the Republic of Ireland.
Both moves are to be effective from 1 January.
C&C has had a distribution agreement with AB InBev in the UK and Ireland since 2009, being responsible for some production and distribution of some of the US giant's brands. In 2020, the group also took control of brewing and selling Budweiser and Bud Light brands on the island of Ireland.
The Leffe brewer had managed the sales and marketing of C&C's cider brands in Great Britain since 2016.
“Bringing the sales, trade marketing and distribution responsibilities in-house will provide both companies with the opportunity to strengthen their respective brand portfolios and distribution platforms”, C&C Group said in a statement.
Brian Perkins, the president of AB InBev subsidiary Budweiser Brewing Group, added: “C&C Group and AB InBev have established a valuable partnership over the years, and we will continue to build upon this across the UK and Ireland.
"We are confident about this new direction for AB InBev in the Republic of Ireland, and we are delighted to be able to leverage the full strength of our portfolio to accelerate growth in this key market."
In a statement, AB InBev said it still has "an effective distribution partnership" with C&C "and remain committed to close collaboration". C&C Group will still distribute AB InBev beer brands in Northern Ireland, the Hoegaarden producer told Just Drinks.
Ralph Findlay, C&C's CEO, added: “We have a strong relationship with AB InBev and continuing this partnership remains a key element of our distribution plans. We’re excited about the opportunity to develop and invest in our Magners brand to drive growth as part of our cider portfolio across the on and off trade in Great Britain.”
C&C announced the news in a trading update for the first half of its 2025 financial year today (9 September).
In the six months to 31 August, the Addelstones cider owner said it expected its net revenue to decline 3% year-on-year.
Underlying operating profit will sit between €39m ($43.1m) and €41m, the group said, “principally reflecting the phased rebuilding of our distribution business profitability following last year’s ERP disruption”.
The group’s “premium beer and cider brands” business saw “double-digit revenue growth” in the period, attributed to Menabrea beer and Orchard Pig cider.
C&C's wholesale businesses Matthew Clark and Bibendum are also expected to book 2% growth in the half-year period, as distribution points grew 10% year-on-year across both businesses in August 2024.
Despite “challenging” market conditions, the group said it remains focused on “improving efficiencies, business simplification, winning customers and brand distribution”, and still aims to hit its €100m operating profit target for FY2027.
In its trading update, the group also noted it had “commenced the recruitment process” for a replacement CEO, with the former chief executive Patrick McMahon having been expected to depart this month.
McMahon announced his intention to exit C&C earlier in June, following financial mistakes made in his prior position of CFO.
