Bundaberg Brewed Drinks says the huge distribution deal it has signed with Pepsi in the United States will boost its production by 45%.
The deal means Bundaberg Brewed Drinks’ ginger beer will It will potentially be available in more than 400,000 stores, bars and restaurants through the Pepsi network. It is already the No.5 ginger beer brand nationally and the number one in California.
Given our market leadership in Australia and the demand for craft brewed beverages among United States consumers, the logical next step for our brand is to grow our US business through expanded distribution,” said John McLean, CEO at Bundaberg Brewed Drinks (pictured above). “We’ve built our own distribution network globally, but PepsiCo is a great partner for us in the US with their established channels and belief in the craft segment.”
The partnership comes as the craft beverage industry continues to grow in the US, largely driven by millennials searching for new beverage experiences and authentic brands, quality ingredients, and thoughtful production. The U.S. craft beverage sector was up 3.1% as of January 2018, with the category expected to reach $1.5 billion by 2020.
PepsiCo global foodservice vice-president Scott Finlow said: “Bundaberg delivers on what US consumers are seeking and by leveraging the strength and scale of our national distribution network, we are able to get its iconic ginger beer and other refreshing beverages on to shelves.”
McLean said the Pepsi deal would increase production to the US by 700,000 cases next financial year. While some bottling of the company’s drinks could occur in the US, manufacturing of the syrup base would continue to be made in Bundaberg using local sugar cane and ginger. The company will potentially move to a 24-hour production cycle to meet demand.
Queensland politicians celebrated the news by clinking Ginger Beer bottles at Parliament House last week. Opposition leader Deb Frecklington, Member for Burnett Stephen Bennett and Member for Bundaberg David Batt all praised the news.
“Bundaberg is once again in the spotlight on the international stage and we could not be prouder,” Bennett said.
“We all know the products that are homegrown in the Bundaberg and Burnett region are exceptional, and now the rest of the world is catching on and falling in love with our iconic products.
“What is even more remarkable about this ever-expanding company is their commitment to remain a family-owned and locally operated company based in Bundaberg.”
Bundaberg Brewed Drink already has annual net sales of $160 million and currently produces 81 million litres of ginger beer a year.