Carlsberg and Marston’s plan UK joint venture

Brewers Carlsberg UK and Marston’s are planning to create a joint venture called Carlsberg Marston’s Brewing Company in a deal valued at £780 million (US$959m).

On completion Carlsberg UK will pay £273m ($336m) to Marston’s and hold a majority 60 per cent share in the jv which will combine the brewing and distribution assets of the brewers.

The deal is expected to be completed in the second half of 2020 subject to shareholder and competition authority approval.

Carlsberg Marston’s Brewing Company aims to build on both brewers’ portfolio of brands and could help to promote Marston’s beers in global markets. The deal will bring together brands such as Carlsberg Danish Pilsner, Carlsberg Expørt, Tetley’s and San Miguel with Marston’s Pedigree, Hobgoblin and Wainwright.

Once the deal is complete, Carlsberg UK managing director Tomasz Blawat will be appointed chief executive of the new business, with Marston’s chief executive Ralph Findlay appointed as non-executive chairman. Richard Westwood, current managing director of Marston’s Beer Company, will be appointed chief operating officer, with responsibility for integrating the two businesses.

“We are excited to move into the next phase of our growth strategy,” said Blawat. “After a successful relaunch of Carlsberg Danish Pilsner in the UK last year, we are now building a new beer company by combining two organisations with shared values and strong history and heritage in brewing.

“Our intent for Carlsberg Marston’s Brewing Company is for it to become a platform for growth for all of our customers and suppliers, offering a bigger beer portfolio of complementary international, national and regional brands. We believe the new business will deliver even more value for employees, customers and consumers, thereby creating greater future growth potential.”

Findlay added: “Marston’s strong heritage, extensive distribution platform and established reputation for brewing and logistics excellence, together with Carlsberg UK’s global brand portfolio and scale, combine the best attributes of both to create a compelling beer business with an outstanding portfolio of global and local beer brands, proven brewing expertise, strong distribution network and wholesale opportunity.”