Denmark-based Royal Unibrew is moving to an in-market brewing model in North America as pressure on exporting prompts an acquisition in Canada.
The purchase of Amsterdam Brewery Co, a “large-scale craft brewery” in Toronto, values the business at around CAD44m (US$33.9m), Royal Unibrew confirmed late last week. While the transaction adds a “more premium offering to our current above-mainstream portfolio in Canada”, the acquirer also noted increased challenges to its export approach.
“Our export business model in the Americas has grown over recent years, but is currently challenged by high freight costs and longer and more unpredictable logistical supply chains,” the Royal Pilsner and Lapin Kulta brand owner said. “The export business model has had natural limitations on both breadth and depth of the offered product portfolio and local production capacity will make us a more flexible supplier.”
Amsterdam Brewery Co, which was founded in 1986, will also produce beer for Royal Unibrew’s business in the US.
Last year, the Canadian company posted sales of CAD34m (US$26.2m). Royal Unibrew, meanwhile, saw its 2021 sales total DKK8.75bn (US$1.2bn).
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