C&C Group has announced that it will cancel its cider partnership in the US with Pabst Brewing Company.
As of April 2018, C&C’s wholly-owned subsidiary Vermont Hard Cider Company will resume full responsibility for the sales and marketing of the group’s portfolio of cider brands in the US, including Woodchuck, Wyders and Magners.
In a statement, C&C Group and Pabst said they recognise that current market dynamics require a different approach that concentrates on Vermont’s core markets.
The transition will be effected by selected sales and marketing personnel returning from Pabst, supplemented by a small number of external hires. Changes to the distributor network are expected to be limited.
C&C’s partnership with Pabst in the UK, which was announced in 2016, will continue.
Last year, C&C’s US business constituted around 4% of its volumes and less than 1% of operating profits. The group does not anticipate any material transitional costs or change to its financial performance, prospects or carrying values in the US arising out of these new arrangements.
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