‘Tough’ hospitality conditions drag sales lower at Magners owner C&C

By Henry Saker-Clark, Press Association Deputy Business Editor

The drinks firm behind Tennent’s lager and Magners cider has revealed a slump in sales after being hit by a “tough time” for hospitality firms.

C&C Group, which also makes Bulmers, saw a reported drop in revenues and profits for the past year but indicated it has seen recent improvement despite a challenging inflationary backdrop.

It revealed net sales slipped by 5.7 per cent to €1.81 billion for the year to February 28th, compared with a year earlier.

The company said this was linked to its planned exit from contracts with the Budweiser Brewing Group in Ireland, as well as “challenging hospitality market conditions” impacting its distribution arm.

Sales of Tennent’s and Bulmers were nevertheless stronger year-on-year.C&C highlighted that “ongoing macro-economic challenges” impacted trading last year, with “cautious consumers” constraining their spending ahead of the Chancellor’s autumn budget last November.

It added that consumer confidence across the UK and Ireland has “continued to be affected by elevated living costs, unpredictable interest rates, and geopolitical uncertainty”.

But boss Roger White told the Press Association that its performance has been “a little better” in recent months.

It comes amid a key summer for pubs and hospitality firms, with hopes that the World Cup can help drive more trade, but White stressed the company is not “relying too much on individual events” for a strong performance.

The group is currently shifting its strategy away from its previous “One C&C” programme to focus on running distinct operating models in the group, separating its C&C drinks brands and its Matthew Clark Bibendum wholesale business.

C&C also reported pre-tax profits of €57.4 million for the past year, dipping from €64.4 million a year earlier.

Shares in the company were up 1.6 per cent on Tuesday.