Heineken Ireland has agreed to take on the Irish rights to distribute Molson Coors’ beer brands, the Sunday Independent reported this week.
The move comes as activity around acquisitions and distributions heat up across Ireland and the UK.
This morning, Carlsberg announced its purchase of Britvic for £3.3 billion, while, in recent weeks, Engine Capital – an investor in C&C Group – has called for the sale of the Bulmers owner.
Before the deal to distribute Molson Coors’ brands, Heineken Ireland already held the rights to Coors Light.
That partnership was part of a separate agreement between the two companies, which they had already extended.
Spokespeople from Heineken Ireland and Molson Coors confirmed the agreement, noting, ‘Heineken Ireland is in the process of engaging with regulatory authorities and while that is ongoing, and until the process is complete, it is business as usual in both Heineken Ireland and Molson Coors Ireland.’
C&C Group
News about the distribution deal comes amid market speculation about whether C&C Group could be the subject of a takeover bid.
This follows an open letter from shareholder Engine Capital, calling for the sale of the drinks company.
It noted that, despite the drinks company’s leading position in Irish and UK markets, it had been a ‘perennial underperformer’ due to ‘a combination of structural and self-inflicted problems.’
C&C Group responded to the letter with a statement noting that it welcomed feedback from all shareholders and has a clear focus on creating value for them.
An analyst covering the food and beverage sectors at Goodbody Stockbrokers, Patrick Higgins, said that the reaction suggests that buyers will wait to see how C&C navigates coming out of a difficult period before purchasing.
Higgins said, “On paper, I think it’s a really good business, but the company is now in ‘show me’ territory with the market because they have had these missteps over the last couple of years.
“So, the market isn’t giving them the benefit of the doubt, in terms of numbers or delivery.”
The chief executive of C&C Group, Ralph Findlay, said that trading in the first quarter had been encouraging, but added that the group remains “cautious about consumer outlook for the year.”
Read More: Carlsberg To Buy Britvic For £3.3bn And Take Over Marston’s Joint Venture
