Shares in C&C Group tumbled today (23 January) after the UK-listed drinks group cut its profit forecast amid “weak” consumer confidence.

The Tennent’s and Orchard Pig owner said “overall trading is below the board’s expectations” as the company nears the end of a financial year that runs to the end of February.

C&C Group said “customer performance” in November and early December had been hit by “weak consumer confidence associated with the November UK Budget”.

There had, the owner of wine distributor Bibendum said, been “softer than anticipated demand” in the hospitality sector. Drinkers, C&C Group added, were switching from wine and spirits to beer.

So far, January had seen “continued softness of consumer demand”, the company said. “We … anticipate that this will continue for the balance of the current financial year,” it added.

C&C Group expects its annual adjusted operating profit to be in the range of €70-73m ($82.2-85.7m) due to lower profits from its distribution business. The analyst consensus estimates prior to the revised forecast was €79.4m.

In the company’s last full financial year, it booked operating profit before exceptional items of €77.1m.

“The board expects a continuation of the current macroeconomic and consumer headwinds into next year but remains confident in the group’s ability to create value for shareholders in the medium to long term,” today’s trading update read.

“It is currently anticipated that FY27 profits will be similar to the current year, reflecting the impact of planned reductions in volumes through the distribution channel as less profitable business is exited but the lag between revenue decrease and cost reduction initiatives is expected to lead to some degree of short-term profit dilution.”

Shares in C&C Group stood at 116.23p at 10:15 GMT, down 9.62% on the open.