Magners volumes in the UK stabilise
Magners producer C&C Group has reported that its UK volumes are stabilising with a fall of just 2% in the six months ended 31 August.
Growth in Magners volumes elsewhere in the world had off-set the decline. The company, which completed the acquisition of the Irish and Scottish businesses of AB Inbev for £180 last month, said it is now reviewing its marketing investment plans after the deal and weaker trading in August and September.
John Dunsmore, chief executive, said: "Following a positive start to the first half, trading conditions in August and September have been more challenging.
"However, we remain on track to deliver on the objective of stabilised volumes and a full year operating profit outcome in line with our stated guidance.
"We expressed our intention to invest an additional €8m (of incremental profit growth) behind the Group's cider brands. Following the acquisition of the Tennent's business, and in light of recent trading conditions we will now review overall marketing investment and deploy our marketing spend where we believe we can get the best returns for shareholders."
Dunsmore added: "We are very pleased to have completed the acquisition of the Tennent's business. This transaction is an evolution of our stated strategy and clearly enhances the Group's position in the Long Alcoholic Drinks sector.
"Tennent's is a celebrated brand and is a compelling strategic fit for the Group to develop alongside Magners in Scotland and Northern Ireland.
"The acquisition presents a great opportunity to strengthen our route to market and broaden our product portfolio by combining our cider brands with some of the world's leading beer brands."
