Dunns set to capitalise on Dameck acquisition

Posted on 5 Aug 2014 by Victoria Fitzgerald

Lanarkshire-based soft drinks manufacturer and wholesaler, Dunns Food and Drinks Ltd, acquired Dameck Drinks Scotland for an unknown amount.

Dameck bought the specialist beer distributor, which supplies 1,200 world and craft beers to 350 pubs, bars and restaurants in Scotland, last week.

Managing director of Dameck, Danny McGeough and his team of four have kept their jobs but have been transferred to Blantyre where Dameck will operate as a standalone business.

Dunns said the deal will increase turnover to £25m in 2015 from £22m.

It also has the potential to add a further £1m in sales to Dameck customers by selling in food, soft drinks, spirits and dispense products.

Jim Rowan, managing director of Dunns said: “Dameck sells over 1,200 craft and world beer products into the Scottish on-trade, and this acquisition will allow us access to a customer base and market sector in which we currently have little presence.

“Having expanded our spirits portfolio and joined the Country Range buying group, we have bolstered our range of food and non-food ranges.

“However, there is a growing consumer demand for niche products, hence our decision to acquire a business which has specialist knowledge of craft beers, a growing sector in Scotland.”

The Dameck transaction is the latest in several takeovers in the Scottish drinks supply sector.

Tennent Caledonian Breweries finalised its acquisition of Wallaces Express in March, JW Filshill acquired Lawrence McQueen in January, and Inverarity Morton took over Forth Wines in October 2013.

The acquisition comes as part of a large investment programme at Dunns, which includes £100,000 on a new IT system and £250,000 to develop its 70,000 square foot warehouse and office in Blantyre.

In addition, £40,000 will be invested in staff training and development over the next two years and £160,000 on improving its 26-strong vehicle fleet.