Tennent’s takes on international markets but owners C&C still see profits fall

May 18th, 2017 | Posted in: Uncategorized

Tennent’s owners C&C Group, in their results to the 28th February 2017, have revealed that net revenues decreased 6.9% to €559.5m, mainly due to declines in wholesale and US markets, and said that the devaluation of sterling after the Brexit vote had cost the company €8 million (£6.9m). Despite operating profit coming in at €95m, in line with last year, and growing in the second half, the company reported a pre-tax loss of €62.9m compared to a profit of €56.3m, due to write-downs.

However the company reported volume growth in core brands (Bulmers, Magners, Tennent’s) of +2.6% with its Premium and Craft portfolio growing rapidly up +60%. Stephen Glancey, C&C Group CEO, commented, “FY2017 has been a period of significant activity for the Group. While trading remained tough, we invested in and delivered volume growth across our core brands; completed a major rationalisation of our production foot print; drove efficiencies across the business; continued to grow our Premium portfolio and Export business; and secured an important new long-term distribution arrangement with AB InBev. After this year of consolidation, we are in materially better shape to meet the ongoing challenges and opportunities within our industry.”

He revealed that the double-digit volume increase behind the Magners brand in the UK had provided the right foundation to extend C&C’s distribution partnership with AB InBev. Glancey said, “The rationale for expanding the relationship is compelling for both parties, allowing each other to play to our route to market strengths, backed by a combined high quality beer & cider portfolio. This partnership has the potential to drive volume and value in Magners for years to come as the category rationalises and distribution synergies are delivered.”

He also said that further progress had been made in growing the company’s premium and craft portfolio commenting, “Heverlee, our authentic Belgian lager, grew +41% to over 20kHL and is now the fastest growing World beer in Scotland and the No.#1 import lager in Northern Ireland. We launched Pabst into the Millennial market in GB and Menabrea, our authentic Italian imported lager, secured UK-wide listings with major supermarket and casual dining groups. Our investment partnerships with some of the most exciting craft breweries across the UK and Ireland, such as Five Lamps in Dublin, Whitewater in Northern Ireland and Drygate in Glasgow, all had a good year.”

As to the coming year Glancey remarked, “ FY2018 has started in line with expectations but we do remain cautious given the outlook for the consumer across our markets. Political uncertainty continues into the current year making forward predictions on trading patterns and consumer behaviour particularly challenging. However, our core brands of Bulmers, Magners and Tennent’s are well positioned to convert their volume momentum in FY2017 into revenue and value growth in FY2018.”

Glancey concluded, “C&C is a resilient business with strong local brands that have stood the test of time and a growing Premium and Craft portfolio. We are confident that the combination of our strong market positions, well- invested brands, flexible low cost production assets and expanded partnership arrangements will deliver value for shareholders over the longer term.”

The following two tabs change content below.
Susan Young
Susan Young is a journalist who has spent the last 20 years editing the DRAM. Prior to that, she spent a decade working in Public Relations and Events dealing with clients as diverse as Cumbernauld Development Agency and James Burrough Distillers. Her knowledge of the Scottish licensed trade is extensive and she also instigated the first ever Scottish licensed trade awards which have evolved into the Scottish Bar and Pub Awards.


Alcohol Stats Receive Mixed Response

Thu 22nd June 2017

Scottish drinkers are learning lessons but are not there yet according to NHS Health Scotland’s latest report. Although it revealed th... Read more.

Greene by Name, Greene by Nature

Wed 21st June 2017

Belhaven owners, Greene King, is aiming to send zero waste to landfill by 2020. This ambitious target follows a partnership last year with w... Read more.

Star Pubs & Bars Invest in Dundee

Sat 10th June 2017

Heineken’s Star Pubs & Bars has earmarked £500K to invest in Dundee’s Mercantile Pub as well as The Gunners Bar in Broughty Ferry. ... Read more.

Round up – June 2017

Sat 10th June 2017

Round up DRAM June The Scottish Licensed Trade Benevolent Society, The BEN, raising £4,500 at its ‘Fashion and Fizz’ event held last mo... Read more.

Dembele Officially Opens Harry’s Bar

Fri 9th June 2017

Celtic legend Harry Hoods family business, The Lisini Pub Co, have opened a new Uddingston bar and named it after Harry as a surprise. The b... Read more.

£250K Refurb for the Long House in Kilmarnock

Wed 7th June 2017

 The Long House in Kilmarnock, owned by Buzzworks Holdings, has just revealed the results of a £250K revamp. During the refurbishment the ... Read more.

Blueberry & Lime Lands in the On-trade

Wed 7th June 2017

Kopparberg has expanded its fruit cider family with the arrival of Blueberry & Lime. It is the latest introduction to the signature rang... Read more.

Licensed Trade News – June 2017

Tue 6th June 2017

 John Bryden Perth licensee John Bryden and daughter Georgia were thrilled to meet Jools Holland after sponsoring his Perth Concert Hall s... Read more.

Double Gold for the Glasgow Distillery at the World Spirit Awards

Tue 6th June 2017

Glasgow Distillery is the first gin and single malt distillery since 1902 received two golds at The World Spirit Awards. It received a doubl... Read more.

Douglas Laing see Profits Increase

Mon 5th June 2017

Family owned Scotch Whisky specialist Douglas Laing has revealed that profits increased 17% to £1.6m in 2016. Double digit growth three yea... Read more.

Design Focus: Taphouse Bar & Kitchen

Mon 5th June 2017

Stroll down Argyle Street into the heart of Finnieston nowadays and you’re met with an almost bewildering choice of venues. From the trend... Read more.

Profits fall for Tennent’s Owner C&C

Sun 4th June 2017

Tennent’s owners C&C Group, in their results to the 28th February 2017, have revealed that net revenues decreased 6.9% to €559.5m, m... Read more.

Design Focus: Ardnamurchan

Sun 4th June 2017

A new Scottish restaurant Ardnamurchan has opened opposite the Theatre Royal at the northern end of Hope Street in Glasgow. Its predecessor... Read more.

Sue Says – June 2017

Sat 3rd June 2017

There’s definitely sea change happening when it comes to people moving on… Ken, Kenny, Kenneth McGown of Star Pubs & Bars, after... Read more.

Magners Campaign to Seize the Summer

Sat 3rd June 2017

Cider brand Magners is drawing our attention to the fact that summer will be two days shorter this year! The brand, as a result, is campaign... Read more.

Design Focus: Cocktails & Steaks

Sat 3rd June 2017

Ferocious, cleaver-wielding gang boss Bill “The Butcher” Cutting, played by Daniel Day-Lewis in Hollywood blockbuster Gangs of New York,... Read more.

Glenmorangie Reintroduces Native Oysters to the Dornoch Firth

Fri 2nd June 2017

A ground-breaking environmental project pioneered by Glenmorangie has seen Native European oysters reintroduced to coastal waters around it... Read more.

Summer Drinks

Thu 1st June 2017

Have a wee read of some fun facts about summer and some recommendations for summer drinks. The phrase “dog days of summer”, often used t... Read more.

Design Focus: Maggie Mays

Thu 1st June 2017

Glasgow rock n’ roll institution Maggie Mays has turned up the volume with a £400k makeover commissioned by Oli Norman and Stephen White,... Read more.

Greene King raises £3m for Macmillan Cancer Support

Thu 25th May 2017

Greene King pubs throughout the UK have helped raise £3 million for its charity partner, Macmillan Cancer Support over the past five year... Read more.