Scottish craft brewer Innis & Gunn has announced an extended manufacturing and distribution partnership with C&C Group, the owner of brands such as Bulmers and Tennent’s.
Innis & Gunn’s beers will continue to be produced and packaged at C&C’s Wellpark Brewery in Glasgow as part of a renewed agreement, as well as at Innis & Gunn’s Brewery in Perth.
The partnership is being formalised through investment in Innis & Gunn which will give C&C an equity stake of 8%. A long-term incentive scheme is also in place which will make a number of additional shares available to C&C based on performance targets being met.
The agreement builds on a long-term manufacturing relationship between the two companies which dates back to 2010. Under the new partnership, C&C will use its position as the largest independent beverage-alcohol distributor in the UK and Ireland to increase the distribution and availability of Innis & Gunn beers in the on-trade, wholesale and free-trade channels, through its distribution businesses Matthew Clark in the UK and through Bulmers Ireland and Tennent’s NI in Ireland.
Innis & Gunn will continue to be responsible for all brand marketing and for sales and distribution to national pub chains, the off-trade and current international markets.
Dougal Gunn Sharp, Founder of Innis & Gunn, said: “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 re-direct 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, Managing Director Scotland at C&C-owned Tennent’s commented: “This new partnership with Innis & Gunn reflects well on our brand distribution model and it is exciting to welcome them into our portfolio.”
He added: “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.”
