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Scottish & Newcastle UK and Wells & Young’s Brewing Company agree sale for Courage brands
17th Jan 2007
Scottish & Newcastle UK (S&N UK) has announced today that it has reached an agreement with Wells & Young’s Brewing Company (W&YBC) to sell the rights for the production, marketing and sales of the Courage portfolio of ale brands.To facilitate these arrangements, a new joint venture business will be formed, Courage Brands Ltd, in which W&YBC will take an 83% equity stake. The Courage brands include; Courage Best, Courage Directors, Courage Dark Mild and Courage Light Ale.
"These new arrangements are part of S&N's continuous strategy to find the right organisational and ownership solutions for our brand equities. The Courage brands are an excellent fit with W&YBC's existing specialist beer portfolio and they have already proven excellent brewers of a number of our brands over the years so part of this strategy is to optimise the use of the excellent brewing facilities that they have at Bedford. Our sale of the Theakston brands back to family members in 2002, has proved that this type of innovative deal structuring can be beneficial for both parties and for the development of niche brands. Importantly, there should be no negative impact on Courage stockists or drinkers. Indeed, under the stewardship of W&YBC, we will see substantial new investment in these classic cask ale brands which will be able to flourish under the new arrangement."
Nigel McNally, Managing Director of W&YBC comments that;
“This is a significant first major acquisition for Wells & Young’s and firmly cements our commitment to brew and develop speciality cask ale. The Courage portfolio compliments the W&YBC portfolio and gives us further authority to speak to the trade, both in the on and off trade sectors as category leaders of cask ale.These Courage beers are iconic within the brewing heritage of this country. The Courage name, which we are committed to retaining, underpins all that is great about our industry.”
S&N will retain a 17% stake in the new holding company and will continue to sell and distribute Courage brands throughout its direct regional on-trade business. WYBC will be free to promote the brands within its own customer base and seek new stockists around the UK. It will also take on existing S&N national pub accounts, wholesalers and the take-home sector.
The transfer of brewing, from the John Smith’s Brewery at Tadcaster, to the W&YBC Brewery in Bedford, will take place progressively over the next few months and great care & attention will be made to flavour matching and product quality over this period. Jim Robertson W&YBC Master Brewer trained for 10 years as a Courage Brewer at Horsleydown Brewery and as such is already immersed into the traditions of brewing these iconic beers.
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For more information of this release contact Nigel Pollard, S&N UK, on +447785 531756, or Jo Dring, W&YBC, on +447967 835294
NOTES TO EDITORS; This joint venture, Courage Brands Ltd, is substantially owned and managed by W&YBC. However W&YBC remains an independent company owned by Charles wells Ltd & Young’s & Co Plc and continues to operate as the no. 1 Brewer of Speciality Beers in the UK.
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