C&C taps beer profits
DRINKS maker C&C Group yesterday announced a partial cure for its hangover from falling cider revenues as it flagged better-than-expected profits from its move into beer.
The Irish company, which last year bought Scotland’s Tennent’s in a £180million deal with brewing giant Anheuser-Busch InBev, said it expected the beer to add about e7million (£6.2million) to this year’s profits.
Magners cider group C&C said, excluding Tennent’s, it was on course to deliver annual profits approaching e77 to e82million.
But its trading update showed tough conditions for its cider business, despite a three per cent upturn for December on the previous year.
Revenues in the three months to November 30 were down nine per cent, due mainly to a 13 per cent drop in cider revenues, with a four per cent decline in spirits. Over nine months to the end of November, revenues excluding Tennent’s were down seven per cent.
“Business conditions in the cider markets remain challenging. C&C expects to report a year-on-year decline in volumes for 2010, compared with a decline of more than 14 per cent in 2009,” the company said.