C&C would steal market share from competitors if minimum pricing takes effect, Nomura says

C&C would steal market share from competitors if minimum pricing takes effect, Nomura says

C&C Group's decision to turn its back on "unattractive" off-trade deals means it would benefit from a minimum unit price taking effect in Scotland, according to an analyst. 

The Dublin-based group, which reported a drop in full-year profits yesterday (15 May), would have "scope for market share gains in the off-trade", analysts Nomura said in a note. The controversial legislation, which has had Royal Assent but is the subject of an on-going legal challenge, would also mean a shift in sales to the more profitable on-trade, the note suggested. 

It added: "We would highlight that the average retail selling price of Tennent's in the Scottish off-trade, close to GBP0.50 per unit, is at a significant premium to most competitors, around GBP0.35 - GBP0.40, as C&C has walked away from unattractive off-trade deals." 

Nomura also flagged that the Magners producer's balance sheet is in "good health" offering firepower for more "value accretive deals". 

For a full round-up of just-drinks' coverage of C&C Group's FY performance, click here.