C&C Delegates US Ciders To Subsidiary
Drinks company C&C Group has announced that its wholly owned US subsidiary, Vermont Hard Cider Company, will resume full responsibility for the sales and marketing of its cider brands in the US, including Woodchuck, Wyders and Magners, effective 1 April 2018.
The group, which owns Bulmers Irish Cider, said that both parties recognise that current market dynamics require a different approach that concentrates on Vermont Hard Cider Company’s core business.
The transition will involve the return of selected sales and marketing personnel from Pabst, supplemented by a small number of external hires, the company said.
Low Cost Transition
C&C said that it does not anticipate the new arrangements to lead to any material costs or change to its financial performance, prospects or carrying values in the US.
Changes to the distributor network are expected to be limited and C&C’s partnership with Pabst in the UK will continue, according to the company.
In the 2017 financial year, C&C’s US business amounted to about 4% of group volumes and less than 1% of operating profits.
C&C said it will provide its usual period end trading update for the Group as a whole in early March.
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