Company, which already distributes Coors Light, is to become the distributor for beers including Madri
The move by Heineken comes as activity around distribution rights and speculation over acquisitions heat up in the drinks market across Ireland and the UK.
Recently, Engine Capital, an investor in Bulmers cider maker C&C Group, called for a sale of the business, while Carlsberg made a bid to buy MiWadi producer Britvic. San Miguel also switched its UK distributor from Carlsberg to ABInBev-owned Budweiser Brewing Group.
Before the deal to take on the distribution of Molson Coors’ brands, Heineken Ireland already had the rights to one of the Canadian-American group’s most well-known brands, Coors Light. That partnership between the two was part of a separate agreement that had already been extended.
Heineken Ireland already had the rights to one of the Canadian-American group’s most well-known brands, Coors Light. Photo: Stock image/Getty
The Sunday Independent understands Heineken taking over distribution of the other Molson Coors brands in the Irish market will have to be cleared by the Competition and Consumer Protection Commission.
Spokespeople for Heineken and Molson Coors confirmed the agreement.
“Heineken Ireland and Molson Coors Beverage Company have entered into an agreement which would see the appointment of Heineken Ireland as the licensed distributor for the Molson Coors Beverage Company for the additional brands in the Republic of Ireland.”
The additional brands included in the deal are Madri Excepcional, Carling, Franciscan Well, Molson Canadian, Miller Genuine Draft, Staropramen, Cobra, Blue Moon, Rekorderlig, and Aspall.
“Heineken Ireland is in the process of engaging with regulatory authorities and while that is ongoing, and until the process is complete, it is business as usual in both Heineken Ireland and Molson Coors in Ireland,” the spokespeople added.
Heineken Ireland already has several strong brands in its portfolio, including Heineken, Birra Moretti, Orchard Thieves, Lagunitas, Beamish, Murphy’s, and Foster’s.
Heineken Ireland already has several strong brands in its portfolio, including Heineken, Birra Moretti
Heineken Ireland entered the Irish market in 1978 when Murphy’s Brewery launched the product here. The Dutch company then acquired Murphy’s in 1983.
Heineken has since become one of the top-performing alcohol brands in the Irish market. It brews from Lady’s Well Brewery in Cork.
News of the Heineken and Molson distribution deal comes amid market speculation about whether Bulmers producer C&C could be the subject of a takeover bid.
It follows a letter from activist investor Engine Capital, which owns 5pc of C&C, calling for a strategic review and sale of the UK-listed, Irish-headquartered drinks group.
The market response to the letter was tepid. When reports of the letter emerged, C&C shares were trading at around £1.61 (€1.90). At the time of writing, shares were trading at around £1.59.
C&C responded to the Engine Capital letter, saying it welcomed feedback from all shareholders and had a “clear focus on creating shareholder value”.
“As set out in the recent 2024 financial year year-end results update, the underlying performance has been in line with expectations, and progress has been made in returning capital to shareholders.
“Operationally, the key priority is to deliver the substantial actions currently being progressed at pace throughout the business, driving forward both brand and distribution revenue, improving margin, while returning up to €150m by the end of financial year 2027.”
Patrick Higgins, an analyst covering the food and beverage sectors at Goodbody Stockbrokers, said the reaction suggests any prospective buyer of the business would be more likely to wait and see if C&C can emerge from what has been a difficult period, steady itself and deliver more consistent results.
Should C&C steady itself and achieve better results, and the share price fails to rise, then a bid for the business could become more likely, he said.
News comes amid market speculation about whether Bulmers producer C&C could be the subject of a takeover bid
Higgins added that C&C’s impressive branded and distribution businesses would be attractive to any group looking to gain a foothold in the Irish or UK markets.
“On paper, I think it is a really good business,” he said. “But the company is now in ‘show me’ territory with the market because they have had these missteps over the last couple of years. So the market isn’t giving them the benefit of the doubt in terms of numbers or delivery.”
In C&C’s recent annual report, Ralph Findlay, chair and CEO of C&C, said the business had stabilised in a “challenging environment and year for the group”. He added that C&C had continued to focus on enhancing its operations, maintaining the strength of its balance sheet and rebuilding its profitability.
Findlay also said trading in the first quarter had been encouraging and was in line with its expectations. However, he added that C&C remained “cautious about the consumer outlook for the year”.