Beer wholesale distribution business Jolly Good Beer (JGB) is set to be bought out by chilled logistics operators Fardel Shipping and Hedges Chilled Distribution.
JBG, which is based in Norfolk, announced yesterday that it had secured investment from the logistics companies, and JGB founder Yvan Seth confirmed to Drinks Retailing that the investment is “the first stage in a process that results in full acquisition of the business”.
“This is a highly complementary joining of forces, combining their resources and service model with our direct to trade wholesale network,” added Seth. “Beyond significantly stabilising JGB after three years of difficult times this partnership gives us access to a wealth of capabilities that will allow us to expand coverage, range, and services to better serve brewers and trade customers.”
Fardel Shipping was established in 2009 by Ciaron Reynolds and Paul Jackson – and the pair bought Hedges Chilled in 2018. Seth said JGB will be acquired by a business unit called DrinkFresh “hopefully around April”.
“We are delighted to bring Jolly Good Beer into our group of companies,” said Reynolds. “Jolly Good Beer provides an excellent quality of service for its customers, many of whom we also work with on a daily basis. Yvan and his team share our recognition that good logistics are important to good product condition. There are many synergies between our companies that we will combine to establish a wider distribution network that our customers can rely upon for many years to come.”
Seth said the deal will result in one immediate redundancy, with three more roles at risk due to overlaps in capabilities.
“We are working to minimise this,” he added. “This means 10+ jobs are retained (we have 14 staff), and in the short term we expect at least two jobs to be created directly as a result of the acquisition.”
Financial details behind the deal were not disclosed.