April’s top news stories

Constellation Brands to divest wine and spirits brands for $1.7bn

Constellation Brands agreed to sell nearly 30 brands from its wine and spirits portfolio to E&J Gallo Winery for $1.7bn to accelerate growth and increase shareholder value.

The transaction includes six winemaking facilities in California, Washington and New York.

Subject to regulatory approval, the transaction is expected to close by the end of Q1 2020.

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Aprirose acquired British Land’s pub portfolio for $170m

Aprirose acquired Spirit Pub Company’s portfolio of public houses from British Land for around £130m ($170m).

The deal comprised 45 sites, including properties in Brighton, Middlesbrough, Newcastle, Nottingham and Twickenham.

British Land is one of the largest property developers in the UK. The Telegraph reported that it has divested more than £2.5bn worth of assets ranging from individual shops and supermarkets to office blocks over the last five years.

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Coca Cola bottler Arca Continental planned to invest $681m in 2019

Arca Continental is planning to invest around MXN13bn ($681m) this year to strengthen its operations.

The company manufactures, distributes and markets non-alcoholic beverages under The Coca-Cola Company brand. The money will be used for market execution in its food and beverage divisions.

Of the total MXN13bn ($681m), Arca will allocate around MXN4.6bn ($240m) to its Mexican business, MXN3.4bn ($178m) (26%) for its activities in South America and MXN5bn ($261m) for its operations in the US, including MXN3bn ($157m) for a new manufacturing plant in Houston.

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Diageo submitted plans to upgrade Cardhu and Clynelish distilleries

Diageo submitted an application to upgrade its Cardhu and Clynelish distilleries.

The project will be part of a £150m initiative announced in April last year that aims to transform Diageo’s Scotch whisky visitor facilities and promote the beverage worldwide.

The company provided details of the upgrade to Moray Council and the Highland Council for review.

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Lion acquired UK’s Magic Rock Brewing to support growth

Kirin Holdings’ beverage company Lion acquired UK-based craft brewer Magic Rock Brewing Company.

Lion aims to use the acquisition to drive its next phase of growth in the UK’s craft beer market. The brewer intends to meet the growing demand for its products in the domestic market, as well as aims to build its growth in pubs and supermarkets.

Lion Global Markets managing director Matt Tapper said: “Magic Rock has been one the pioneers in the UK craft beer scene and has built a loyal following due to its relentless pursuit of authenticity and quality.”

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Jack Daniel’s released No. 27 Gold Tennessee whiskey in US

Brown-Forman’s launched Jack Daniel’s No. 27 Gold Tennessee whiskey in the US.

First released as a travel retail exclusive item and select markets in Asia, the whiskey is claimed to have been matured in new charred American white oak barrels at Jack Daniel Distillery.

Jack Daniel’s master distiller Jeff Arnett said: “Jack Daniel’s No. 27 Gold pays homage to our distillery’s golden rule of, ‘Every day we make it, we’ll make it the best we can.’”

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Pernod Ricard acquired Italian gin brand Malfy

Pernod Ricard signed an agreement with Biggar & Leith to acquire Italian gin brand Malfy.

Pernod Ricard global business development managing director Christian Porta said: “This acquisition is true to our long-standing strategy of investing in brands with strong potential in growing categories.

“In line with the launch of our Transform and Accelerate strategic plan, we will continue actively manage our fantastic portfolio of brands.”

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Butterfly to acquire Bolthouse Farms from Campbell for $510m

Butterfly signed a definitive agreement to buy Bolthouse Farms from Campbell Soup Company for a cash consideration of $510m.

Subject to customary purchase price adjustments, the investment in Bolthouse Farms is reported to be the fourth within Butterfly’s seed-to-fork approach, which focuses on the agriculture, aquaculture, beverage, food service and distribution markets.

Founded in 1915, Bolthouse Farms produces organic plant-based protein milk and fruit-based beverages. The company was acquired by Campbell in August 2012, and operates facilities in Illinois, Ontario and Washington.

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PepsiCo released three flavoured soft drinks made with real fruit juice

PepsiCo launched Pepsi Berry, Pepsi Lime and Pepsi Mango to the US market.

The drinks are claimed to offer strong fruity flavours derived from real fruit juice.

PepsiCo Marketing vice-president Todd Kaplan said: “We are really excited to release these three new flavours, as they provide our fans with a flavourful new cola experience that combines the delicious flavour of an ice-cold Pepsi with a splash of real fruit juice.”

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McLeod Russel agreed to sell three tea estates in India

McLeod Russel signed an agreement to sell three of its tea estates located in the state of Assam to Luxmi Tea Company for an estimated value of nearly INR1.5bn ($21m).

As part of the agreement, McLeod Russel will sell Addabarie Tea Estate, Mahakali Tea Estate and Dirai Tea Estate assets. Together, the three sites contributed around INR770m ($11m) to McLeod Russel’s turnover in the 2018 financial year.

Luxmi Tea is engaged in the growing, manufacture and sale of tea. McLeod Russel intends to use proceeds from the divestiture to reduce its debts and make new investments in its existing tea estates.