Bulmers parent C&C Group has announced the sale of its wholly-owned US subsidiary, Vermont Hard Cider Company, to Northeast Kingdom Drink Group LLC for $20 million, which will be used to drive down debt.
This follows on from the sale of Tipperary Coolers in Ireland for €7 million during the most recent financial year.
'Going forward, the objective is to continue to position C&C as the preeminent brand-led drinks distribution business in the core markets of the UK and Ireland,' the group said.
The company said that it is taking a 'series of proactive steps' to mitigate the impact of the COVID-19 pandemic on its operations, including a cost reduction programme that is set to deliver savings of €18 million per year.
It plans to accelerate the optimisation of its English and Scottish delivery networks by the first quarter of next year, which will consolidate volumes from three separate networks into two, while it has also postponed non-committed capital expenditure projects.
“C&C has an inherently strong business model, with admired brands that embody provenance and have a real affinity with their markets, coupled with a leading distribution infrastructure in terms of scale and reach," said David Forde, C&C Group chief executive
C&C Group will report its full-year preliminary results on 26 May.
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