Beverage M&A, December 2022 – What Just Drinks thinks

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Carlsberg Acquires Canadian Craft Brewery Waterloo Brewing

Carlsberg moved to strengthen its position in Canada, signing a deal to acquire Ontario microbrewery Waterloo Brewing for C$144 million (US$106 million).

After the deal, the Tuborg brand owner said it will produce both its own brand and the Waterloo Brewing brand at the craft maker’s production facility in Kitchener, Ontario.

Just Drinks believes: In December’s only (disclosed) beverage industry triple-digit deal, Danish giant Carlsberg moved to acquire Canada’s Waterloo Brewing Co. Carlsberg said the acquisition of Waterloo Brewing, Ontario’s largest Canadian-owned brewery, would provide “significant supply chain and revenue synergies” for the group.

Waterloo Brewing’s contract brewing and packaging experience will appeal to Carlsberg as well as the close relationship Tuborg brewers already enjoy with the Ontario outfit (Waterloo Brewing will We have been selling Carlsberg’s Summersby cider brand in the Canadian market since 2008). The move significantly increases Carlsberg’s presence in North America, where it previously had no manufacturing base.

For Waterloo Brewing, the deal “provides instant liquidity” at a time of rising input costs in brewing. The beer company was pulling few trees in domestic performance. Carlsberg hopes to turn a profit, with earnings plunging nearly C$7 million in his nine months through September.

Toast Ale receives investment from Heineken to fund food waste mission

British social enterprise brewer Toast Ale has raised £2m (US$2.5m) in a new funding round that attracts investment from Heineken. The exact amount Heineken invested in the business and the shares the Dutch brewer received in return were not disclosed.

Just Drinks believes: As we head into 2023, brewers large and small will be looking at ways to reduce raw material costs while also finding ways to deliver on the sustainability commitments demanded by the modern consumer. Acquiring Toast Ale, which uses leftover bread to brew beer and tackle food waste, could prove a clever business slice (a highly intended pun) for Heineken.

Amstel brand owners will not benefit from this investment as the profits from the toasted ale will be donated to charity and the profits of their shares must be reinvested in the business. The company said it intends to use its partnership with Toast Ale to “expand innovation and research and develop best practices.”

Exactly how scalable Toast Ale’s concept of buying extra bread from sandwich shops and bakeries across the UK remains unclear.

Pernod Ricard is ready for action with Cockorico’s investment

Pernod Ricard has acquired a majority stake in Cockorico, a French-based ready-to-use cocktail company.

The Paris-based group will provide distribution and guidance to the brand’s founders and they will remain in business.

Just Drinks believes: This domestic acquisition by Pernod Ricard does not shock its competitors, but it represents a departure from the French wine and spirits giant’s previous strategy. ready to drink (The RTD) approach was previously dedicated to RTD representations of flagship spirits brands such as Beefeater, Malfi, Jameson and Malibu.

Of course, Cockorico is unlikely to reach the heights of some of Pernod’s international brands, but it points to a broad path to growth that exists within the ready-to-drink/ready-to-serve segment.William While some spirits brand owners, including Grant & Sons, have tended to shy away from canned RTDs in favor of premium bottled cocktails, other spirits majors, and now Pernod, have We happily dip our feet in both kinds of premixed drinks. We expect it to continue to grow in popularity in 2023 and beyond as consumers continue to demand quality and convenience.

Symington Family Estate Purchases Vinho Verde Vineyard

Symington Family Estates has purchased 28 hectares of land in the Vinho Verde production area in Portugal.

The wine company and Port Wine House will produce various farm wines from the Casa de Rodas vineyards in the Montsant and Melgazo subregions in the north of the country. The first wines of the year are produced.

Just Drinks believes: Symington Family Estates has in recent years gone beyond its primary activity of producing Port and DOC Douro wines. The acquisition of Casa de Rodas follows the Group’s strategy of focusing on Portuguese wines, which it believes have great export potential. The group acquired his 42 hectares of land in the province of Alto Alentejo, Quinta da Fonte his Souto in 2016 and in 2022 his 50 shares of the sparkling wine producer Caves Transmontanas. purchased %.

This latest deal focuses on the trendy vinho verde growing region of Portugal, whose wines are being sold among European consumers for their zesty flavor, low alcohol content, light carbonation and affordability. is gaining popularity in Wines from the vineyard will be released in his 2023 and should complement Symington’s existing still and sparkling offerings.

Other notable beverage M&A news for December:

Kirin ‘seeking US craft beer expansion’ after strong sales growth

French wine investor Artemis Domaine owns Champagne Maison Maison Jackson

AG Barr acquires remainder of oat milk maker Moma Foods

Get Elephant Gin From A Caribbean Company

Spain’s Torre Oria Winery sells 35% stake to Portobello Capital

Lactalis Acquires Brazilian Fonterra-Nestlé Dairy Venture

Read more: Why beverage M&A won’t end in 2023