Canada’s Waterloo Brewing has signed a three-year agreement with Hiram Walker & Sons, a subsidiary of global spirits and wine company Pernod Ricard.

Under the agreement, Waterloo Brewing will produce cocktails and alcoholic sodas under the ABSOLUT vodka brand for Hiram Walker.

Established nearly 160 years ago in Canada, Hiram Walker produces a wide range of alcohol beverage brands including JP Wiser’s, Lot No 40, Pike Creek and McGuinness liqueurs for Canadian distribution by its affiliate Corby Spirit and Wine.

It operates a production facility in Windsor, Ontario.

Waterloo Brewing president and CEO George Croft said: “Hiram Walker & Sons Limited’s choice to work with us continues to reaffirm our strategy to be the best co-pack producer in the beer and alcoholic beverage category in Canada.”

The company states that it has been expanding its business through partnerships with some top tier global beverage companies.

Waterloo Brewing COO Russell Tabata said: “Waterloo Brewing’s capability to provide high quality, highly efficient production along with superior customer service, continues to drive impressive growth in our co-packing business.

“Our strategic use of capital is clearly paying dividends in the short term.”

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

Under the agreement, Waterloo Brewing is to serve as the exclusive Canadian producer of the cider brand. The company anticipated more than $20m in incremental revenue.

The company’s Somersby Cider products will appear in the market in 2020.