BULMERS has announced it is buying The Beer Seller, the leading independent national on-trade distributor, for £32 million.

Tim Furse, managing director of Bulmers UK, said: "Our intention with this acquisition is to strengthen our long-established trading relationships with on-trade customers. We will now be both a supplier and customer to them and will aim to continue to grow our business together.

"It will also give us the opportunity to develop new routes to market currently missing for our brands, especially new products, and it will be of particular importance to our beer agency, making us much more attractive to international brand owners seeking a UK distributor."

The Beer Seller, founded in 1987, has a turnover of £130 million and made a profit of £3.5 million in its last financial year.

The business operates from 18 depots across England, services 16,000 accounts and employs about 600.

Close ties

Chairman Paul Horsley and managing director Guy Newell will remain with the company, which will run as a stand-alone entity within the Bulmer Group.

Tim Furse said: "We plan to grow The Beer Seller business and to develop the close ties it already has with the majority of companies in the brewing and pub-retailing sector."

The combined Bulmer/Beer Seller salesforce will number some 300, making it a significant force in the on-trade. Beer Seller has a particularly strong portfolio of cask ales and a growing wine trade.

"Having a further direct route to market has been recognised as a key element in Bulmers long-term development plans. Currently, draught ciders are available in only 60 per cent of all on-trade outlets and have access to just 50 per cent of the independent free trade."