Analysis

Analysis - C&C Group's H1 hints at Ireland rebound

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C&C Group's latest half-year results suggest that Ireland's beer and cider market is “starting to turn the corner”, an analyst has said.

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The Irish owner of Magners and Bulmers reported yesterday (30 October) that  H1 net sales in the country, excluding the Gleeson Group acquisition made earlier this year, rose by 2%. Volumes in the country, again excluding Gleeson, were up by 2.7%, after an 11.5% decline in Q1.  

Nomura analyst Edward Mundy said today (31 October): “Strong H1 profit delivery in the ROI division should not be a surprise given the good summer weather. However, we detect greater optimism that the macro environment is starting to turn a corner and improving on-trade performance would indicate that price deflation from the move from on- to off-trade should start to moderate.”

Last year it was revealed that sales in the Ireland's off-trade channel had dropped by a third since 2007. Figures also showed that total consumption declined by 3.2% in the first seven months of last year, with decreases across beer, wine, spirits and cider.

Mundy today said the Gleeson purchase, completed in March, will help C&C grab a larger share of the Irish beer market than its current 2% slice, while also offering greater distribution opportunities for brands such as Tennent's and Caledonian Smooth.

In its results yesterday, C&C said that for the first time in seven years, the Irish on-trade in Long Alcoholic Drinks outperformed the off-trade, down 1% compared to off-trade's 2% drop.


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