C&C Group to acquire Asahi UK’s wholesale business

C&C Group has reached an agreement to acquire Asahi Group Holdings' wholesale and distribution business in the United Kingdom. The UK-listed drinks company will purchase the assets for nominal consideration, integrating them into C&C's Matthew Clark Bibendum (MCB) operation. C&C CEO Roger White stated that the deal will help structurally grow the MCB business, bring new customers, and deliver immediate scale and efficiency to the group.

The acquisition includes the lease of Nectar Imports' depot in Hindon, Wiltshire, and the assumption of supply arrangements for Fuller, Smith & Turner's on-trade estate. Asahi will cease its direct distribution services from its Griffin Brewery site in west London, transferring them to MCB. For Asahi, the transaction aligns with its strategy to focus on brewing, brand building, and consumer engagement.

Asahi's UK managing director, Tim Clay, expressed that MCB is the right long-term home for Nectar Imports and Asahi UK's existing direct distribution customers. The deal was announced alongside C&C's trading results for the six months ending 31 August. C&C's net revenue declined by 3% year-on-year, with branded revenue up 2% and distribution revenue down 4%.

C&C anticipates first-half underlying operating profit between €43m ($49.8m) and €44m, with a full-year target of aligning with market expectations.