C&C Branded Sales Up 2% as It Takes On Asahi UK On-Trade Supply

For retailers and hospitality operators, C&C's Asahi UK wholesale acquisition is a stock-availability story: supply arrangements for the Fuller's on-trade estate transfer to C&C, keeping Peroni, Grolsch and Pilsner Urquell flowing to pubs. Yet first-half figures show a split consumer picture—branded revenue up 2% on hot weather and the World Cup, while distribution sales slid 4% as outlet numbers and drinks categories decline.

C&C Group, the Dublin-based drinks company behind Magners and Tennent's, announced on September 11, 2026 that it has agreed to acquire Asahi UK's wholesale business for a nominal sum. The transaction transfers Asahi UK's wholesale customer and supplier relationships and agreements, intellectual property, a leased depot, vehicles and stock to C&C, which will fold the business into its Matthew Clark Bibendum (MCB) wholesale arm. In addition, all supply arrangements to the Fuller, Smith & Turner on-trade estate will transfer to C&C. The deal is expected to complete in October 2026. C&C shares rose 6% in morning trading on the announcement.

“

For retailers and hospitality operators, C&C's Asahi UK wholesale acquisition is a stock-availability story: supply arrangements for the Fuller's on-trade estate transfer to C&C, keeping Peroni, Grolsch and Pilsner Urquell flowing to pubs.

The low headline price underscores that this is a strategic rationalization rather than a premium acquisition. Asahi Group Holdings, the Japanese parent, owns Fuller's in the UK and global beer brands including Peroni, Grolsch and Pilsner Urquell. By exiting the UK wholesale operation, Asahi appears to be shedding a capital-intensive, margin-thin logistics layer while retaining brand ownership and production. For C&C, the deal offers an opportunity to consolidate distribution scale at minimal cash cost, deepen its customer base in the UK on-trade, and integrate critical supply arrangements for a major pub estate.

The trading update released alongside the deal reveals the operational pressures behind this move. C&C reported total revenues fell 3% in the first half to August 31, 2026. Branded revenues rose 2% in the half-year, helped by hot weather and the World Cup, but distribution sales dropped 4%. C&C attributed the distribution decline to the planned exit of some lower margin customer business, ongoing market decline in outlet numbers, and weakness in certain drinks categories. It maintained guidance for underlying earnings of approximately €43 million to €44 million (£37 million to £38 million) for the first half.

Integrating Asahi UK's wholesale assets into Matthew Clark Bibendum is expected to improve route density, absorb fixed costs across a larger delivered volume, and perhaps restore distribution margin by replacing lower-margin business. The inclusion of a leased depot, vehicles and stock means C&C can add physical capacity quickly without large capital outlay. But integration risk is real: customer and supplier contracts must be migrated, delivery routes rationalized, and service levels maintained, especially for Fuller, Smith & Turner's on-trade estate. Supply continuity is critical because any disruption in delivering Asahi brands to pub groups would quickly affect tap availability and consumer sales.