Japanese brewer Asahi has agreed to buy the beer business of London Pride-maker Fuller’s for £250 million (US$327 million), the pair announced Friday.
As well as purchasing the production and distribution operations of Fuller’s beer, cider and soft drinks, Asahi’s European arm will take over also the wine wholesaling business and the centuries-old Griffin Brewery.
This will see Fuller’s focus on being a “premium pub and hotel operator”, a statement said.
“Recent structural changes to the beer industry, which have resulted in material economies of scale benefiting global brewers and a progressive beer duty spawning small brewers… have been challenging,” Fuller’s said.
Under the deal, Fuller’s will retain ownership of its brand name, while Asahi will hold the global licence to use the trademark.
“Fuller’s is one of the few brewers that show the same genuine commitment to brewing excellence and quality that we do,” said Akiyoshi Koji, chief executive of Asahi Group Holdings.
“We strongly believe that the brands of the beer business, including London Pride, Frontier (lager) and Cornish Orchards (cider) among others, complement our premium portfolio in the UK market.
“In particular, London Pride is a fantastic brand with an illustrious heritage dating back to the 1950s and we are excited about its untapped international potential which Asahi has the scale and global network to unlock,” Koji added.
Fuller’s was founded in 1845, while its main brewing facility is the Griffin in Chiswick, west London, where beer has been produced since 1654.
“Brewing has formed an integral part of our history and brand identity, however the core of Fuller’s and the driver of our future growth is now our premium pubs and hotels business,” the group’s chief executive Simon Emeny said in Friday’s statement.
Neil Wilson, chief market analyst at Markets.com, said while pubs across the UK “may be closing at a hell of a clip these days… consumers still want experiences and dining out is one of those”.
“Therefore, investing in pubs and hotels is essential as consumers demand more from their pub experience,” he added. – AFP
