Innis & Gunn signs distribution and sales deal, with C&C taking 8% share

07-Jan-2021 - Last updated on 07-Jan-2021 at 15:31 GMT

Sharp deal: Innis & Gunn founder Douglas Sharp (pictured) signs new C&C deal

Scottish craft brewer Innis & Gunn has signed a new long-term sales and distribution deal with manufacturer C&C to sell its beers in the UK and Ireland.

The beers will continue to be brewed and packaged at C&C’s Glasgow facility as well at Innis & Gunn’s Perth site as part of the renewed agreement.

The deal will see C&C take an 8% equity stake in the business, while what is being described as a long-term incentive scheme is also in place allowing C&C to take additional shares should performance targets be met.

The two companies began working together in 2010, and since Innis & Gunn has claimed to be the number one craft beer brand in Scotland, as well as a top three brand in the UK overall.

The new agreement

Under the new agreement, Innis & Gunn will aim to further increase its brand presence and investments in England, the two companies said in a statement today.

The plan to do so will hinge on C&C’s position as the UK’s largest independent alcohol beverage distributor, utilising C&C’s distribution businesses such as Matthew Clark.

However, Innis & Gunn will remain responsible for all brand marketing and sales, as well as sales distribution to national pub chains, the off-trade and to current international markets.

Innis & Gunn founder Dougal Sharp said: “At a time when we are seeing consumer demand for our beers increasing, in-fact becoming the sixth largest Scottish drinks brand in our home market in 2020, this is a key next step in our growth strategy.

“C&C’s strength in the on-trade across the whole of the UK and Ireland, and our long-term relationship, means we have solid foundations from which to build.”

Right partner and platform

Sharp continued: “C&C is the right partner with the right platform to help us accelerate our growth into these channels and seek to replicate the success the brand has enjoyed in Scotland.

“The partnership will also create immediate synergies enabling us to redirect additional capital behind marketing and new product development.”

Retaining the brand’s independence while gaining a long-term distribution deal would help the company introduce itself to a wider audience, he added.

Once uncertainties brought about by the coronavirus pandemic are removed, Sharp continued, Innis & Gunn would look to build its Edinburgh Brewery.

Managing director of Scotland Tennent’s, which is owned by C&C, Kenny Gray said: “This new partnership with Innis & Gunn reflects well on our brand distribution model and it is exciting to welcome them into our portfolio.