C&C Group takes 8% stake in brewer
The deal will see the manufacturer sell and distribute Innis & Gunn’s portfolio in the UK and Ireland and gain an equity stake of 8% in the company.
C&C Group will also continue to manufacture Innis & Gunn brands at its Wellpark Brewery in Glasgow, following a deal agreed in 2010. Additional shares will also be available to C&C Group based on performance targets.
Innis & Gunn will remain at the helm of the distribution and sales of its beer to national pub chains, the off-trade and current international markets. The craft brewer will also retain responsibility for brand marketing.
Dougal Gunn Sharp, founder of Innis & Gunn, said “At a time when we are seeing consumer demand for our beers increasing, in-fact becoming the sixth largest Scottish drinks brand in our home market in 2020, this is a key next step in our growth strategy.
“C&C’s strength in the on trade across the whole of the UK and Ireland, and our long-term relationship, means we have solid foundations from which to build.
“C&C is the right partner with the right platform to help us accelerate our growth into these channels and seek to replicate the success the brand has enjoyed in Scotland. The partnership will also create immediate synergies enabling us to redirect additional capital behind marketing and new product development.
“We are retaining our independence and gaining a new distribution partner which can help us to introduce our brand to a much wider audience.
“The new manufacturing agreement leaves all options on the table to allow us to build our Edinburgh Brewery when the time is right and when there is less uncertainty in the market caused by the current Covid-19 pandemic.”
Kenny Gray, Tennent’s managing director, said: “This new partnership with Innis & Gunn reflects well on our brand distribution model and it is exciting to welcome them into our portfolio. They will be a strong and complementary addition which no doubt will be well received by our customers who are increasingly seeking an extended range.
“As an equity partner our interests are naturally aligned to grow the brand. To that end, we will use our platforms to gain access to the larger UK and Irish markets as well as seeking to collaborate in other, new international markets where we see opportunities.”