S&N outlines new ale and cider joint ventures
Scottish & Newcastle (S&N) today spelt out details of its new heritage brand joint venture.
The venture, Heritage Drinks Ltd (HDL), will assume the UK sales and marketing rights plus management of what S&N describes as its heritage brands: McEwan's, Youngers, Newcastle Exhibition, as well as cider brands including Scrumpy Jack and Woodpecker.
S&N's partner in the new arrangement is Jygsaw, a company created by a team of four existing S&N managers, led by Simon Brown, a senior S&N director. The new Jygsaw team will leave its current S&N employment to start up the group.
As well as assuming responsibility for the heritage brands from January 1 2008, Jygsaw will also take on the marketing of the Newcastle Brown Ale brand in the UK.
Tim Seager, Managing Director for S&N UK said: "We have already shown, though other joints ventures such as Theakston and Courage Ales, that bringing renewed focus and resources to non core brands can pay great dividends.
"I am looking forward to working with the Jygsaw team and wish them every success in this exciting new venture."
Simon Brown, added: "We hope that, over the coming months, we can demonstrate both our and S&N's ongoing commitment and support for these brands.
"By focussing our expertise and resources on these much respected and often cherished brand equities we believe that there are real opportunities for both parties.
"Over time, we hope that customers and consumers alike will enjoy the unique benefit of the choice that these brands offer within the S&N portfolio."
S&N said the changes only related to the brand management and ownership; there were no changes planned to manufacturing, delivery, sales, tele-sales and technical support arrangements.
In addition the HDL arrangement, S&N also announced the creation of a joint venture with Herefordshire-based Q-Group to produce packaged cider.
The new facility, based at Q Groups site in Ledbury, Herefordshire, will be the largest of its type in western Europe and be closely linked to S&N's main cider-making site at Bulmers in the centre of Hereford.
The current site will continue to produce around 3.5 million hectolitres of cider per annum, while the new venture will ensure that future cider growth can be accommodated easily.
Stephen Glancey, group operations director for S&N, said: "This is a good long term strategic solution to manage the rapid growth of the cider industry whilst ensuring that we remain loyal to our Herefordshire roots."
In the last quarter, S&N said it had seen total cider market share increase to 52.7 per cent, with Strongbow continuing double digit growth and Bulmers Original in the last quarter achieving a market share of 26.4 per cent.
