Murphy Brewery Ireland has expanded its drinks distribution business through the acquisition of a 50 per cent shareholding in Western Beverages. The deal followed the merger of the packaged licensed trade of Clada Soft Drinks of Galway and Mulrine Beverages of Donegal.
This could be followed by other similar acquisitions and the move can be seen as retaliation for the recent expansion by Guinness.
"Murphy Brewery has noted with increasing concern the increased concentration of control in the distribution sector," said Mr Marien Kakebeeke, managing director of Murphy Brewery. "Control of key areas of the distribution network by competitors of Murphy Brewery has meant that we must give major priority to the security of our supply channels to the trade through Ireland.
"Making joint venture investment with companies like Clada and Mulrine will ensure access for Murphy Brewery products to key markets in the west and northwest of Ireland."
He said that his company and others in the drinks trade have viewed "with dismay" the recent decision of the Competition Authority to allow United Beverages to be acquired 100 per cent by Guinness.
"This is an excessive concentration of control and we have therefore taken action against this decision to protect our interest and those of the trade."
He claimed there was a "real danger that this control could be anti-competitive and could inhibit the access which Murphy Brewery products have to the trade in key markets throughout Ireland".
The other 50 per cent of Western Beverages is held by the Owen family which controls Clada and the Mulrine family which owns Mulrine.
The consideration has not been disclosed but there is an unquantified cash injection into Western Brewery by Murphy Brewery.
Murphy Brewery will have the management responsibility for Western Beverages under a management contract. The board will be chaired by Dr Frank Mulrine and will include directors from Clada, Mulrine and Murphy Brewery. As Connaught's only soft drinks manufacturer, Clada will continue to operate its own soft drink and bottled water manufacturing business, including Galway Spring Water, and its fresh produce importation and distribution business. The Mulrine manufacturing base in Donegal will remain owned by the Mulrine family.
