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Kingsland Drinks to acquire Bottle Green Limited

Published:  30 April, 2015

Kingsland Drinks yesterday agreed to purchase Bottle Green Limited from DCC Food & Beverage UK Limited for an undisclosed sum.

Kingsland Drinks yesterday agreed to purchase Bottle Green Limited from DCC Food & Beverage UK Limited for an undisclosed sum. 

Andy Sagar, the managing director of Manchester-based Kingsland Drinks said: "As we continue on our journey to become the destination drinks company, we are extremely proud to bring Bottle Green into the Kingsland family. "

According to Sagar the two business will be managed separately in the short term. "The two strong businesses can continue to operate independently however the management teams will explore how best to collaborate and identify integration synergies across all areas," he said.

Bottle Green, which was founded in the 1990s, was bought from Irish company DCC in 2004, and formed part of DCC's Food & Beverage division. 

Frank Fenn, the managing director of the DCC Food & Beverage said: "We are pleased to have reached agreement with Kingsland Drinks in relation to their acquisition of Bottle Green." 

"We look forward to seeing Bottle Green and its employees continue to grow and develop under Kingsland's ownership."

Fenn confirmed that other subsidiaries in this division were sold by DCC earlier this year.

The acquisition of Bottle Green, which is based in nearby Leeds, will further help Kinsgland help deliver on expanding its on-trade and independent reach. It has been steadily growing its business and has had success with its on-trade and independent division, Bottle Green Wines. The division posted a 15% rise in sales last July and reported a boost in orders from on-trade customers to its highest level and accounted for a third of the group's business.

However Bottle Green Limited saw losses last year which it attributed to tough trading conditions, an unsuccessful soft drink launch and one of its larger customers changing its supply policy. According to accounts filed at Companies House, turnover rose 5.59% to £34.3m to the end 31 March 2014, but there was an operating loss of £567k.

Kingsland, which is one of the largest bottlers of bulk wine in the UK, has been diversifying its on-trade and premium ranges in recent years, as demonstrated by the acquisition in 2012 of the Stratford's Wine Agencies. The acquisition brought several more premium producers like de Grendel from South Africa, Pascual Toso in Argentina and Southern France based Domaine Paul Mas into their portfolio.

Last week the Manchester-based firm announced it was investing in a carbonation line at its bottling facility which would allow it to produce sparkling wine and infused wines.