C&C Group Plc Trading Statement
July 06 2017 - 1:00AM
UK Regulatory
TIDMCCR
AGM Trading Update
CCR.I CCR.L
Dublin, London | 6 July, 2017: C&C Group plc ("C&C" or
the "Group"), a manufacturer, marketer and distributor of branded
cider, beer, wine and soft drinks today issues a trading update
covering the period from 1 March 2017 to the date of this
statement.
Underlying trading to date, across core markets, is satisfactory
and in line with our expectations. C&C will be better placed to
assess recent brand and NPD investment in Ireland and the new ABI
partnership following the key trading months of July and
August.
The Scottish business has benefitted from multi-year investment
in both customers and brands. This has provided real competitive
advantage and there is a degree of momentum in customer recruitment
in our branded and wholesale channels.
In a flat market the Tennent's brand is gaining share, supported
by a new marketing campaign themed around 'Here to Serve' and our
award winning social media capability.
The premium and craft brands of Menabrea, Heverlee and Drygate
had a strong period, with a number of significant new listings
across all trade channels.
In Ireland, the overall trade has been subdued against strong
comparatives with beer and cider in year on year decline. Against
this backdrop, we re-launched Bulmers in March with new livery and
a heavyweight media campaign. This was supported by category
innovation through our Outcider offering.
It is early days but we are pleased at the response to the
marketing campaign and associated consumer recruitment.
Under intense competition Bulmers has lost more draught
distribution, mitigated by growth in the grocery channel and
innovation. As with the UK, our premium and craft portfolio in
Ireland grew strongly with Heverlee and 5 Lamps the standout
performers. Innovation continues in the Craft space with the launch
of our Dowd's Lane range of craft ciders and beers in Ireland.
The complex transition of Magners and our other cider brands to
AB InBev is on track with minimal customer disruption.
In a flat cider category in GB and against strong comparatives,
volumes are tracking slightly behind target. It is anticipated they
will normalise through the key summer trading months.
Export has had a solid start to the year with Europe maintaining
its strong performance from the prior year, but with a slower start
in the newer markets of Africa and Asia. Australia and New Zealand
have improved year on year and the new distribution arrangement is
bedding in to plan.
In the US, our business is stable, with some progress on
improving efficiencies and utilisation. However, the cider category
remains in negative territory, which is holding back any share
recovery for our brands.
We also continue to explore third party contract manufacturing
and distribution opportunities in our core markets as well as
further operating efficiencies, to supplement our organic growth
plans.
C&C is exposed to the translation impact of the further
weakening in the value of Sterling following the U.K. General
Election. At current EUR/GBP exchange rates, if sustained, our
financial performance for the full year will be negatively impacted
on account of currency movements.
-ENDS-
Contacts
C&C Group plcStephen Glancey, Chief ExecutiveJoe Thompson,
Investor RelationsTel: + 44 7980 844 580
Investors, Analysts & Irish MediaMark Kenny/Jonathan
NeilanFTI ConsultingTel: +353 1 765 0886Email:
CandCGroup@fticonsulting.com
UK & International MediaTim RobertsonNovella
CommunicationsTel: +44 203 151 7008Email:
TimR@novella-comms.com
About C&C Group plc
C&C Group plc is a premium drinks company which owns,
manufactures, markets and distributes branded beer, cider, wine,
soft drinks and bottled water. C&C Group brands include:
Bulmers the leading Irish cider brand; Tennent's, the leading
Scottish beer brand; Magners the premium international cider brand;
Tipperary Water; Finches soft drinks, as well as a range of niche,
premium and craft ciders and beers. C&C Group also owns and
manufactures Woodchuck, a leading craft cider brand in the United
States and manufactures and distributes a number of 3rd party
international beer brands in Scotland and Ireland. C&C is also
a leading drinks wholesaler in Scotland and Ireland, where it
operates under the Tennent's and C&C Gleeson brands
respectively. C&C Group is headquartered in Dublin with
manufacturing operations in Co. Tipperary, Ireland; Glasgow,
Scotland; and Vermont, USA. C&C Group plc is listed on the
Irish and London Stock Exchanges.
Note regarding forward-looking statements
This announcement includes forward-looking statements, including
statements concerning current expectations about future financial
performance and economic and market conditions which C&C
believes are reasonable. However, these statements are neither
promises nor guarantees, but are subject to risks and
uncertainties, including those factors discussed on pages 19 to 21
of the Group's 2017 Report & Accounts that could cause actual
results to differ materially from those anticipated.
View source version on businesswire.com:
http://www.businesswire.com/news/home/20170705006122/en/
This information is provided by Business Wire
(END) Dow Jones Newswires
July 06, 2017 02:00 ET (06:00 GMT)
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