Cider maker takes 47 percent stake in Admiral Taverns

dbba8da3-0726-419a-8daf-8f2af158ddd7articleimage.png

07 Dec 2017 --- Cider maker C&C has completed the deal to invest in UK pub group Admiral Taverns. The makers of Magners, C&C confirmed to FoodIngredientsFirst that is has completed on the deal that, at the time of the initial announcement, was said to be worth approximately £37 million (US$49.5 million). 

The remaining equity is provided by Proprium Capital Partners and Admiral management. Debt funding for the acquisition is non-recourse to C&C.

The investment will be funded from existing C&C facilities and Admiral will be accounted for as an associate of C&C after all conditions of the Admiral investment have now been satisfied. 

C&C believes that the investment will deliver significant economic and route-to-market benefits to its businesses through collaboration with a highly experienced and skilled management team and “participation in a resilient and growing earnings stream from a quality, tenanted pub estate.”

The Admiral business
Admiral currently owns and operates 845 pubs, mainly in England and Wales, with a broad geographic distribution. The pubs are 95 percent freehold or long leasehold, in predominantly suburban or city locations and are operated as a tenanted estate.

The management team at Admiral will remain invested and continue to lead the business.

At the time of the original announcement earlier this year, C&C CEO, Stephen Glancey, said: “The local pub remains at the heart of many suburban and city communities – often the hub of local activity and their economic and social contribution is immeasurable. C&C has a long and successful track-record of supplying and providing financial support to local pubs within the independent free-trade in Scotland and Ireland.”

“In the UK, the tenanted pub model is a key component of the pub industry. When well invested, and with the right operator and product range, it can provide excellent sustainable returns to all participants.”

“Admiral management has a proven track record in balancing these returns with the needs of their tenants and consumers. Today’s new arrangements will enhance choice for both tenants and consumers and provide a platform for further growth at Admiral.”

“For C&C, this is an attractive opportunity to create a new long-term investment in the important on-trade channel, without taking significant financial and operational risk. The investment will provide our brands with improved distribution in some of the best community pubs across the UK, with an opportunity to enhance on-trade penetration further over time.

To contact our editorial team please email us at editorial@cnsmedia.com

Related Articles

Food Ingredients News

Australian foodservice labeling: Seafood sector calls for expansion of Country of Origin Labeling

06 Jul 2018 --- All food sold in retail stores in Australia has to be marked with the product’s country of origin, since new regulation came into force last week (July 1). But the Country of Origin Labeling changes do not cover the foodservice sector, which has led to calls for a widening of the regulation by trade bodies. For example, The Seafood Industry Australia (SIA) is now urging consumers to demand the same for foodservice sales.

Business News

Europe’s carbon dioxide shortage: Drinks industry concern as CO2 runs low

22 Jun 2018 --- The closure of carbon dioxide production sites in Europe has led to a shortage of CO2 and concerns over the possibility of low stocks of soft drinks and beer during one of the busiest times of the year. Despite the fact that most retailers and drinks manufacturers hold high volumes of soft drinks, there are growing concerns that stocks could run low during the height of summer, a high-demand period for carbonated beverages and beer.

Food Ingredients News

World Cup flavor fever: Russian blends and cuisines take center stage

15 Jun 2018 --- With football World Cup hosts Russia opening up their campaign with a 5-0 drubbing of Saudi Arabia yesterday, a higher sense of optimism now exists around the national team, despite their lowly world ranking and recent form. Flavors and cuisines from the hosting country are also in the spotlight. World Cups and Olympic Games offer consumers the chance to try out new cuisines from the spotlighted host countries and this year is no exception, with a wealth of flavors and cuisines on offer from this vast and diverse country.

Food Ingredients News

From hop to hip: Craft moves to the mainstream

05 Jun 2018 --- Craft beverages, functional and botanical ingredients and clean label have long been dominating NPD in the beverage space for some months. Contributing to this is the world of social media, which backs the current wave of food and drink related content as a form of self-expression and the debate around beverages – what’s in them, what’s new and so on – continues to dominate the sector.

Food Ingredients News

Sugar taxes start to bite, but agile formulators have been prepared

03 Apr 2018 --- A controversial sugar tax billed as a new health-promotion levy by the South African government has just started. Designed to support the Department of Health’s aim to reduce the incidence of diabetes, obesity and related diseases, the levy is 2.1 cents per gram of sugar content that exceeds four grams per 100ml (the first four grams per 100ml are levy-free) and sugar content includes added sugar and other sweetening matter.

More Articles