C&C Group has agreed to acquire the Nectar Imports wholesale business and direct distribution operations from Asahi UK.

Following completion, anticipated in October, the business will be fully integrated into C&C’s Matthew Clark Bibendum (MCB) wholesale operation.

The transaction includes the Nectar Imports business, including customer and supplier contracts, and the lease of the depot in Hindon, Wiltshire. It also includes vehicles, stock, operating assets, technology and systems associated with the business and operations.

C&C Group said new customers will have immediate access to MCB’s drinks portfolio, category expertise and established commercial, service and supply chain capabilities.

The agreement includes the full transfer of the supply arrangements to the Fuller Smith Turner on-trade estate.

As a consequence of the proposed transaction, Asahi UK will cease direct distribution services currently managed from the Griffin Brewery site in Chiswick, which will transfer to MCB.

Asahi UK’s portfolio will continue to be available through MCB.

Roger White, CEO, C&C Group, said: “This move represents an attractive opportunity to provide a significant number of new customers with MCB market leading service and range proposition. At the same time driving immediate scale and efficiency into the Group operations.

“We expect the majority of the customer and supplier transitions to be completed with pace in the coming weeks, and we look forward to welcoming this group of new partners into our business.”

Tim Clay, managing director of Asahi UK, added: “This agreement represents an important strategic step for Asahi UK. Following a thorough review of Nectar Imports and the evolving market landscape, we concluded that Matthew Clark Bibendum is the right long-term home for both our Nectar and our existing direct distribution customers.

“We believe this proposed agreement creates the best outcome for our customers and strengthens our route-to-market. Importantly, it allows us to sharpen our focus on what we do best: brewing exceptional beers, building premium brands and investing in future growth.”

Asahi UK reaffirmed its commitment to the long-term future of brewing at Griffin Brewery – of which it retains full ownership and operational control – including the continued production of brands such as London Pride.

Financial details were not disclosed.