TORONTO - Labatt Breweries of Canada says it will buy Mike's Hard Lemonade and Okanagan Cider in a deal with the Mark Anthony Group of Companies worth US$350 million.
The sale will also cover Palm Bay pre-mixed drinks and the Turning Point Brewery in British Columbia, which brews Stanley Park beers.
The acquisition adds a more diverse lineup of drinks to Labatt's growing stable of beverages, the company said Tuesday.
“These additions are going to open up opportunities for our company in the fastest-growing space of beverage alcohol in Canada where Labatt has historically not played,” Labatt spokesman Charlie Angelakos told The Canadian Press.
“We plan to make the most of these opportunities by making strong consumer connections with the acquired brands and growing their presence across the country.”
The acquisition gives Labatt a bigger stake in the growing pre-mixed drinks and ciders markets, which have been growing in popularity in recent years.
“Increasingly consumers are looking for sweeter options,” said Angelakos.
The Mark Anthony Group would retain full ownership of its U.S. operations and its Canadian wine, spirits and beer import and distribution business.
Labatt, which is owned by Annheuser-Busch InBev (
NYSE:BUD,
Forum), has a portfolio of more than 60 beers made in six breweries in Canada.
Under the agreement, the company will bring in about 170 employees.
The sale is expected to close in the coming months.