Magners owner highlights ‘consumer caution’ ahead of Budget
It came as C&C Group revealed lower sales for the past half-year as poor summer weather hit demand for cider.
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Your support makes all the difference.The drinks firm behind Magners and Tennent’s said it has seen “some consumer caution” as shoppers tighten their purse-strings ahead of the Budget.
It came as C&C Group revealed lower sales for the past half-year as poor summer weather hit demand for cider.
Shares in the company slipped on Tuesday morning as a result.
Nevertheless, the Dublin-based business delivered stronger profits and said it is on track with performance targets amid efforts from the new management to revitalise the business.
Former Marston’s boss Ralph Findlay became chief executive officer in June, in addition to his role as chairman, when Patrick McMahon stepped down from the top job after overseeing accounting errors which cost the company millions of pounds.
Mr Findlay said he is “pleased” with the latest performance despite “unfavourable summer weather”.
Trading conditions remain tough, and sentiment regarding the UK autumn Budget has generated some consumer caution; however, positively, we have well-executed plans in place for the Christmas and New Year period, as well as encouraging trading momentum
C&C revealed that net revenues declined by 2% to 861.4 million euros (£715.6 million) for the half-year to August 31.
It said the drop reflects the sale of the non-core soft drinks business in Ireland, lower contract brewing volumes and weaker UK cider sales.
The group said Magners sales volumes came under pressure during the period, dropping by 10%, as “the lack of sunshine in the summer months” hit the brand.
It comes as C&C is set to regain control and distribution of Magners at the start of next year after having the brand managed by Budweiser Brewing Group over the past seven years.
C&C said it has witnessed a strong performance by lager brand Tennent’s, which increased its market share over the half-year.
However, the drinks firm highlighted continued market uncertainty ahead of the Budget.
The company said: “Trading conditions remain tough, and sentiment regarding the UK autumn Budget has generated some consumer caution; however, positively, we have well-executed plans in place for the Christmas and New Year period, as well as encouraging trading momentum.”
C&C Group shares were down 4.3% to 154.6p on Tuesday.