Carlsberg Canada has signed a three-year co-pack contract agreement with Waterloo Brewing for its Somersby Cider brand.

Under the agreement, Waterloo Brewing will serve as the exclusive Canadian producer of the cider brand.

Waterloo Brewing president and CEO George Croft said: “Our co-pack strategy has been a key driver of business growth, along with our impressive owner brand performance.

“The compounded annual growth rate of our co-pack business over the last three years is +29% and is projected to be over +45% by the end of the next fiscal year.

“Our strategic investment of capital in expanding our production capabilities and capacity over the last six years is directly responsible for this compelling track record.”

Under the partnership, Waterloo Brewing expects more than $20m in incremental revenue for the company.

Waterloo Brewing’s Somersby Cider products will be distributed in the market next year.

Carlsberg Canada president Sebastiaan Besems said: “Somersby’s partnership with Waterloo Brewing is integral to building the brand in Canada, delivering innovation and improving our service to customers.”

Established as Brick Brewing Co in 1984, Waterloo Brewing is the largest Canadian-owned brewery in the region.

The company provides a range of contract manufacturing services in beer, coolers and ciders by using its brewing, blending and packaging capabilities.

Earlier this month, Waterloo Brewing secured a three-year co-pack contract to produce a line of ready-to-drink (RTD) alcoholic beverages.