Carlsberg, Marston’s to create Carlsberg Marston’s Brewing Company in UK
Danish brewing company Carlsberg Group said that its UK subsidiary has agreed to form a joint venture beer company in the UK with British brewing and pub retailing business Marston’s.
The joint venture, which will be called Carlsberg Marston’s Brewing Company, is valued at £780 million.
As per the terms of the deal, both Carlsberg UK and Marston’s will contribute their brewing and distribution assets to the joint venture.
Additionally, at completion Carlsberg will pay up to £273 million to Marston’s, £34 million of which will be a deferred contingent payment.
Carlsberg UK will be the controlling shareholder with a 60% ownership in the joint venture, with Marston’s holding 40% in Carlsberg Marston’s Brewing Company.
Subject to shareholder approval at Marston’s and competition clearance, the deal is expected to close in the second half of 2020.
The portfolio of Carlsberg Marston’s Brewing Company will be made up of international, national, and regional beer brands.
Carlsberg’s brands include Carlsberg Danish Pilsner, Tetley’s, Carlsberg Expørt, Poretti, Somersby cider, and the London Fields Brewery craft portfolio, and also the UK licence for San Miguel, Mahou and the Brooklyn Brewery craft beer portfolio.
Marston’s portfolio, on the other hand, includes Hobgoblin, Marston’s Pedigree, Wainwright, and 61 Deep, and the company also owns the Banks’s, Jennings, Eagle, and Ringwood beer brands. It also has the UK licence for global brands Estrella Damm, Erdinger, Shipyard, Kirin, and Warsteiner.
As per the proposal terms, the joint venture will have access to the pub estate of Marston’s for its beer portfolio via a long-term strategic partnership. Marston’s operates nearly 1,400 pubs.
The joint venture is expected to benefit from the wide distribution network of Marston’s Beer Company, which distributes to nearly 11,000 customers directly, including the independent free trade, other pub firms, the off-trade and export.
Carlsberg Group CEO Cees ’t Hart said: “The creation of the joint venture is an important step forward for our UK business. The joint venture’s brand portfolio will allow us to offer a significantly stronger beer portfolio to our UK customers, and at the same time extend distribution into the Marston’s pub estate.
“In addition, the combined business will bring our customers wider choice, greater capacity, product innovation, and marketing and distribution efficiency benefits.”