IRELAND: C&C Group export volumes leap, but UK "challenging"

By | 16 January 2013

C&C is making hay in North America

C&C is making hay in North America

C&C Group has reported a sharp jump in international volumes in its financial year-to-date, but UK trading remains “very challenging”. 

In a trading update today (16 January), the Dublin-headquarted firm reported that, in the nine months to the end of November, international volumes rose 45% year-on-year. Sales in the same period were up by 37.4%.

In the latest quarter, international volumes increased by 28%, as sales rose by 32%. Magners volumes were up by 16% in North America in the three-month period.

C&C also noted an “improved performance” in its home market of Ireland, with volumes edging up by 1.8% in the third quarter. 

However, the group was dragged down by its performance in the UK, where there has been “little discernible improvement” in the trading environment.

“It remains a tough market for brand owners and the increased competition in cider is adding to pricing pressure,” C&C said. Cider volumes in Q3 dropped by 11.9% as sales fell by 19%. 

Meanwhile, trading since 1 December has been “mixed”, the company said. But, it added that “good growth in export volumes should continue in the last quarter of the year”. 

Its EUR12.4m (US$16m) acquistion of Irish drinks firm Gleeson Group remains subject to approval from the country's competition authorities. In a note, analysts Nomura said that it believes the downturn in the Irish on-trade is starting to "bottom out". "In our view, this is constructive for C&C’s stronger distribution footprint into the Irish on-trade post the Gleeson transaction," it said.

And last month, C&C completed a US$305m deal to buy Vermont Hard Cider Company, which it expects to contribute EUR1.5m of earnings in its full-year results. 

The group reaffirmed its operating profit guidance at the “lower end” of its previously-stated range of EUR112m to EUR118m. 

For a full copy of C&C's update, click here.

Expert analysis

Cider Market in West Europe to 2017: Market Guide

Canadean’s, "Cider Market in West Europe to 2017: Market Guide" provides in-depth detail on the trends and drivers of the Cider market in West Europe. The quantitative data in the report (historic and forecast consumption values) analyses the dynamics in the West European countries, providing marketers with the essential information to understand their own and their competitors’ position in this market and the information to accurately identify where to compete in the future.

Sectors: Beer & cider, Company results

Companies: C&C Group

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