Heineken sells drinks wholesaler Waverley

Needless to say, Heineken would not admit that it has failed to turn the struggling WTBS around. Instead Heineken said the sale would allow both it and WTBS to focus on their respective core businesses – with the Dutch brewer continuing to sell main brands such as Kronenbourg 1664, Foster’s, Heineken and Strongbow through WTBS.

S&N acquired the Beer Seller wholesale drinks group as part of its purchase of the Bulmers cider company in 2004.

It merged with S&N’s existing Waverley wine business to form WTBS, which last year reportedly had sales of GBP 500 million (EUR 620 million) as it supplied 31,000 national and independent free-trade pubs.

Waverley’s subsidiary United Wine Merchants, which operates in Northern Ireland, is not included in the sale and will remain part of Heineken UK.

Waverley will retain a number of commercial agreements with Heineken UK, including a brand supply agreement and trading incentives.

Waverley racked up pre-tax losses of GBP 21 million in 2008, according to UK media reports.