UK revenues dip for Tennent’s owner

C&C Group, the parent company of Tennent’s and Magners, claims to be on track to increase its operating profit in the current financial year, despite what it described as “difficult” trading conditions in the first quarter.

In an interim statement, C&C said its UK cider revenues were down 24% in the three months to May 31, compared to the same period in 2012.
Tennent’s revenues fell 6.1% in the three months.
In volume terms, sales of its cider brands in the UK were down 22.2% in the period, while Tennent’s volumes were down 12.4%.
C&C attributed the decline in beer and cider volumes to a weaker off-trade performance, with the on-trade described as more “robust”.
Tennent’s total branded volumes were said to have increased by 7% in the Scottish independent free-trade during the period.
C&C Group chief executive Stephen Glancey said Tennent’s “again performed well and provides a degree of balance to a competitive UK cider market”.
“We are pleased to guide towards continued earnings growth for the current financial year,” he said. “We remain focused on developing our multi-beverage capability in core markets and investing in customers through our trade lending model.
“We expect to continue to reduce operating costs, deliver earnings growth and to enjoy the benefits of balance sheet strength.”