UK – American multinational beverage company Molson Coors has invested US$16 million in upgrading facilities at a 300-year old UK cider production facility.
The facility produces the Aspall Cyder cider brand which Delaware, Illinois based Molson Coors acquired in 2018 in a deal that gave the company an enterprise value of £40 million.
The new investment was used to fund a three-year modernisation project to make the facility in Suffolk more environmentally friendly, efficient and to increase production.
In addition to creating a new fermentation building, Aspalls also upgraded its wastewater treatment plant, allowing for wastewater to be treated on-site.
The project also included the construction of a new weighbridge, enabling transportation trucks to be weigheded on-site prior to departure to reduce mileage.
Together, the treatment plant and bridge will reduce “local traffic by the equivalent of 800 tankers a year,” the company said.
Molson which had committed to reinvesting into the company during the acquisition said the investment has helped to increase production by almost 60% to approximately 70 million pints of cider annually.
“Aspall is one of Suffolk’s best-loved exports and one of Britain’s most distinctive cider brands. So, a fundamental commitment when we took ownership of the brand was to strengthen – and never detract from – its rich heritage,” added Phil Whitehead, Molson Coors’ managing director for Western Europe.
Molson Coors investment comes as the U.K. continues to dominate the cider market with consumers gulping 800 million liters of cider in a year, according to data from Grand View Research.
Globally, the market research firm estimates that the cider market size was worth US$4.33 billion in 2018 and is anticipated to register a CAGR of 3.1% from 2019 to 2025.
Increasing demand for premium spirits on account of rising per capita income as well as consumption of alcohol as a status symbol is among the major growth drivers.
Molson Coors plans to leverage the project to keep up with demand for premium hard cider in the UK, and enable consumers to experience its range of vinegars and apple juices.
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