Royal Unibrew has signed an agreement to acquire Birra Castello’s production facility in San Giorgio di Nogaro, Italy. The acquisition is expected to bolster Royal Unibrew’s expanding operations in Italy and international markets, while simultaneously reducing its periodic capacity constraints.
The deal will “significantly enhance” Royal Unibrew’s manufacturing and packaging capabilities for cans and glass bottles in Italy, as the production facility brings an estimated potential beer production capacity of up to 1 million hectolitres per year.
With two filling lines, the facility will enable Royal Unibrew to expand its footprint in the country, effectively meeting the growing demand for its products both in the domestic market and its international business segment.
Royal Unibrew’s investment in an additional production facility in Italy complements its previous acquisition of Terme di Crodo in 2018. The Terme di Crodo facility, which was acquired from Campari, is responsible for producing Royal Unibrew’s local soft drinks, such as Lemonsoda and Lemonsoda Energy Activator.
Through the expansion of production capacity in Italy, Royal Unibrew aims to create additional job opportunities. In addition, Royal Unibrew’s Italian business will have the means to explore new partnerships and collaborations.
Later this year, Royal Unibrew will take ownership of the assets after completing certain transaction-related processes. Terms of the transaction were not disclosed.