Magners firm snaps up US rival cider

Irish drinks group C&C, which owns brands including Tennent’s lager and Magners, yesterday upped its presence in the fast-growing US cider market in a deal worth up to €20 million (£17.1m).

The acquisition of Hornsby’s, the second-largest cider brand in the US, from E&J Gallo Winery will give C&C around 20 per cent of cider sales in the US. Hornsby’s is primarily sold in shops on the US west coast while Magners is mainly sold in bars and restaurants on the east coast.

The US is seen as a key market for C&C given significantly faster growth rates than the UK. Sales of Magners there grew 38 per cent in the year to February with volumes expected to increase by a further 20 per cent in the current financial year.

Stephen Glancey, the former Scottish & Newcastle executive who is taking over the reins as chief executive of C&C from John Dunsmore next month, said it was a strategically significant acquisition which positioned C&C as the No 2 player in a rapidly growing sector.

Liam Igoe, an analyst with Goodbody stockbrokers in Dublin, described it as a “logical, positive move”.