US-based beer brewer Pabst Brewing Company (PBC) has entered into a long-term distribution partnership with Vermont Hard Cider Company, which is manufacturer of American cider.
The agreement entails that Vermont Hard Cider will sell and distribute Vermont's cider brands within the US. The agreement is slated to become effectual from 1 March 2016.
The terms of the partnership entail that PBC will be the exclusive distributor of all of the Vermont's cider brands in the US including craft cider brands Woodchuck, Gumption, Wyder's and Hornsby's, in addition to the imported cider brands from Ireland and England, including Magners and Blackthorn.
The sales of the Vermont portfolio to distributors and retailers in the US will be taken care of by PBC's sales and national accounts organization.
Following the deal, Vermont's sales and marketing organization will continue to function as an independent entity focused on marketing activation and bolstering Vermont brands' performance.
Pabst Brewing Company chairman and CEO Eugene Kashper said: "We are honored to add Vermont's great ciders to our portfolio.This partnership is another key milestone as we look to collaborate with independent brand owners to build a best-in-class portfolio of craft and import brands. We are thrilled to be working with the team in Vermont and I am confident that together we will be able to return these rich heritage brands to growth."
Following the transaction closure, Vermont will retain complete ownership of its US cider brands and its related assets which include cidery in Middlebury, Vermont, which is believed to be one of the largest US facility dedicated to cider production and distribution rights to markets outside of the US.
The partnership is intended to bolster Vermont's expansion into the US market by utilizing PBC's extensive distribution network and sales platform. Through the combined marketing capabilities, the companies intend to achieve a smooth integration effort.
Vermont vice president of sales, Terry Hopper said: "This partnership will bring together iconic American brands and will insure Vermont's great products get the support they deserve. PBC's team has the experience and passion to grow our brands and to help expand the cider category as a whole. You will see the same level of customer service, category expertise, and even more day to day activity in the marketplace. It is important to note that the making of our domestic ciders will remain in Vermont and that our team of cider makers will continue their commitment to quality and innovation."
The agreement also facilitates an option for PBC to acquire Vermont's US Cider Brands and related assets, following regulatory approvals. The financial details will be arrived at, at the time of exercising of the option.
Image: Pabst Brewing to distribute Vermont's cider brands in the US. Photo: Courtesy of suphakit73/FreeDigitalPhotos.net.
