An optimistic outlook from Tennent’s owner C&C
Tennent’s owner C&C has revealed that trading picked up in the last three months of the year in Scotland. In a trading update, the company said, “Trading in the last quarter of the year provides grounds for optimism and the Board is confident in the earnings prospects of the Group in FY17.” With regard to Scotland specifically the company stated, “general trading picked up in the last quarter as the impact of tighter drink driving legislation in December 2014 fell out of the comparatives. Share performance of the Tennent’s brand in the key Independent Free Trade channel improved in the second half of the year.”
The group will reveal its results for 2016 on 11th May but it is forecasting a Group operating profit in the region of £79.5m.
In a Capital Markets Day presentation on March 10, the company also revealed that In the On and off-trade Tennent’s remained Scotland’s favourite drink (AC Nielsen/CGA) with value sales of £369.8m, Coca-Cola is second with Smirnoff the third most popular drink with sales of £217.2m. The importance of the on-trade to the brand was highlighted in the presentation with the company revealing that two-thirds of Tennent’s volume comes from the on-trade.
The company also said that 8% of its brand volumes are now coming from boutique and speciality brands with Heverlee seeing growth of 265% over the last two years in Scotland and Ireland.
In the presentation Kenny Neison, Group Chief Financial Officer C&C suggested last year had been a “difficult year”, but said it was now behind them. Stating, we are “now in the right shape for positive run.”