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(Sharecast News) - Supreme said on Tuesday that it has signed an exclusive five-year licensing agreement with Carabao Group to manufacture and distribute Carabao energy and isotonic drinks in the UK, as it looked to expand its presence in the fast-growing functional beverages category.
Under the agreement, Supreme would take responsibility for production and distribution of the Carabao range across the UK, supporting the brand's long-term growth strategy in the market.
The AIM-traded company said the partnership would combine Carabao's established brand recognition, supported by its sponsorship of the Carabao Cup through to 2029, with Supreme's manufacturing capability and retail distribution network.
Carabao already has a presence with major UK retailers including Morrisons, Asda and Sainsbury's, and Supreme said its existing relationships and supply chain expertise would help broaden the brand's reach and visibility across multiple channels, while also supporting new product development and improved availability.
"Carabao is a fantastic brand with strong heritage, high consumer awareness, and a clear identity in the energy drinks category," said chief executive Sandy Chadha.
"This partnership is a perfect fit for Supreme and sits firmly within our sweet spot, leveraging our manufacturing capability, innovation expertise, and distribution strength.
"We see a significant opportunity to build on Carabao's existing success and drive meaningful growth across the UK market."
At 1440 BST, shares in Supreme were up 5.26% at 160p.
Reporting by Josh White for Sharecast.com.
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