Today we are pleased to announce the new joint venture between DB Breweries Limited and Redwood Cellars (2006) Limited.
DB Breweries has acquired a majority shareholding in Redwoods for the production and distribution of cider products in New Zealand and Australia.
The new Nelson-based joint venture will operate as a stand-alone business to be named Redwood Cider Company. It will incorporate Redwood’s existing brands and the DB cider brands providing the biggest portfolio of cider brands in the New Zealand market. Brands include Redwood Cellars Old Mout Cider and DB Breweries’ cider brands Monteith’s Crushed Apple and Pear Cider, Johnny Arrow and imported Swedish brand Rekorderlig.
Redwood Cellars’ Managing Director Justin Hall will be a shareholder in the new company and will become Managing Director of the newly formed Redwood Cider Company. There will be a five person board of directors headed by Brian Blake, Managing Director of DB Breweries, as Chairman.
The cider category has seen, and is forecast for, significant growth within the New Zealand and Australian alcohol markets in the coming years, so a decision to enter into the joint venture was a natural conclusion by both companies who already have a business partnership to produce Monteith’s cider.
Both Monteith’s and Old Mout Cider brands will be distributed by Drinkworks in Australia, a wholly owned subsidiary of DB Breweries.
The new venture will effectively ‘free up’ DB Breweries of its cider production, marketing and sales and will capitalise on the brewery’s core business strength and assets to focus on beer.
“The Redwood Cellars team is extremely proud of what has been achieved with the Old Mout Cider brand, and personally being a cider lover and advocate, I’m thrilled to be leading us into this new proactive cider venture with DB” says Justin Hall, Managing Director of Redwood Cider Company.
Brian Blake, Managing Director of DB Breweries and Chairman of Redwood Cider Company said, “DB has taken a majority position in Redwoods as part of its growth strategy and sees this as not just a joint venture in terms of investment, but also most importantly as a shared belief that cider is a mainstay. Beer may enjoy ‘mature’ market status but cider is still emerging and represents an exciting opportunity for further growth and innovation.”
There will be a short integration period before Redwood Cider Company becomes fully operational on 1st October 2012.
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