Carlsberg has confirmed plans to acquire Waterloo Brewing, the “largest Canadian-owned brewery” in Ontario, for CAD144m [US$106m].
The transaction, which has been approved by Waterloo’s board ahead of a shareholders’ vote, would see the 38-year-old craft brewer fold into Carlsberg’s “small” business in the country. Subsequently, the Denmark-based group hopes to capitalise on Waterloo’s local sourcing, resulting in “significant supply chain and revenue synergies”.
The two companies have had a production arrangement for Carlsberg’s Somersby cider brand in Canada since 2020.
“One of our priorities in our ‘SAIL’27’ strategy is to grow our business in attractive markets, where we are small today, like Canada,” said CEO Cees ‘t Hart. “The acquisition of Waterloo Brewing significantly improves our growth prospects in the Canadian market.”
While Waterloo’s brewery – the company operates co-manufacturing partnerships as well as its own brands – is based in Kitchener, Carlsberg Canada has offices in Oakville, around 80km east but also in Ontario.
Historically, Carlsberg has steered clear of North America, where the beer category is dominated by Anheuser-Busch InBev and Molson Coors Beverage Co. The informal strategy has helped Carlsberg avoid a ‘volumes race’ with the brewer preferring to focus on Asia and Eastern Europe for growth.
Russia’s invasion of Ukraine earlier this year, however, prompted the company to ready its exit from the former country, where it owns major player Baltika Breweries through the Baltic Beverages Holding subsidiary.
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