Profits fall for Tennent’s Owner C&C

June 4th, 2017 | Posted in: News

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.

DRAM News Team

Editor at DRAM Magazine
DRAM magazine is Scotland’s leading monthly licensed trade magazine. It has been dedicated exclusively to the on-trade in Scotland for the past 23 years. It is independently owned, edited and published in Scotland. The DRAM is innovative, creative and original. First with the news, and the people in the news. Covering all the latest information on pubs, bars, clubs, restaurants and hotels in Scotland.

Wetherspoon’s preliminary results show a healthy sales growth but Martin slams remainers

Fri 16th March 2018

J D Wetherspoon’s Preliminary results (For the 26 weeks ended 28 January 2018) show an increase in revenue of 3.6% to £830.4m, with l... Read more.

Three in a row for Buzzworks as it makes The Sunday Times 100 Best Companies to Work for 2018 list … again

Wed 14th March 2018

Congratulations to Buzzworks Holdings who have once again made it into the The Sunday Times 100 Best Companies to Work for 2018. It’s ... Read more.

Positive news from Tennent’s as market share and revenues grow

Wed 14th March 2018

Tennent’s owners C&C Group has revealed that Scotland’s best selling lager has grown market share in the Independent Free Tr... Read more.

Design Focus: A new era for The Kirkhouse in Shettleston

Thu 8th March 2018

There is a little corner of Shettleston that will probably forever be associated with the Healy family – who since taking over The Kirkhou... Read more.

Design Focus: Malones Irish Bar Edinburgh

Wed 7th March 2018

There is nothing nicer than going to a pub in the middle of the day to find it buzzing and that was the case when I visited the new Malones... Read more.

Maxxium UK rebrands to Edrington-Beam Suntory and relocates to Glasgow

Wed 7th March 2018

Spirits company, Maxxium UK, the UK sales, marketing and distribution company owned by Edrington and Beam Suntory, will be known as Edringto... Read more.

Six by Nico gets set for Edinburgh launch

Thu 15th February 2018

Chef Nico Simeone is set to introduce his successful dining concept ‘Six by Nico’ to Edinburgh this April. ‘Six by Nico&#... Read more.

Hanoi Bike Shop: Dog lovers urgently required for First Dates

Wed 7th February 2018

Vietnamese restaurant Hanoi Bike Shop, in Glasgow’s West End, is set to host its own version of popular Channel 4 show ‘First Da... Read more.

Buzzworks celebrate 9.2% rise in profits as turnover hits £14.8m

Tue 30th January 2018

Buzzworks, the award-winning Ayrshire-based hospitality group, owned by Kenny, Colin and Alison Blair, celebrated a rise in turnover of 15.6... Read more.


Fri 26th January 2018

Edinburgh Gin is making it easier for romantics just in time for the 14th February with its revamped 2018 Valentine’s limited-edition ... Read more.

Strong performance from Diageo but Smirnoff see sales dip

Thu 25th January 2018

Diageo has reported a strong performance with operating profit up 6.1% on net sales of £6.5bn. ... Read more.

Top 5 Malt whiskies to celebrate Burns Day

Thu 25th January 2018

Malt whisky accounts for 16.1% of all whisky sales, while blends account for 61.7%. Top 5 Malt whiskies Glenfiddich 12 year old Glenmorangie... Read more.

Burns didn’t die of alcohol, more matters of the heart

Thu 25th January 2018

People have speculated that Burns died of alcohol excess and possibly a sexual disease, but that was probably just the view of his biographe... Read more.

Scotland rules!

Thu 25th January 2018

Scotland’s most famous man is Robert Burns. But there was a somewhat murky side to our famed poet. It’s well documented that he had 13 c... Read more.

Burns painting turned out to be a bargain!

Thu 25th January 2018

Stephen Barnes bought a painting of Burns for less than £1,000 and when he got the painting authenticated, he found out it was actually wor... Read more.

Isle of Arran partners with Burns Unbroke

Thu 25th January 2018

Isle of Arran Distillers is sponsoring Burns Unbroke, a brand new multi-arts Robert Burns Festival. The event which takes place at Summerhal... Read more.

Whyte & Mackay sponsors 2018 Glasgow Comedy Festival

Wed 24th January 2018

Whyte & Mackay is sponsoring the 2018 Glasgow International Comedy Festival. The long-running festival is the flagship event of the Glas... Read more.

A gin that celebrates Byron

Wed 24th January 2018

Speyside Distillery – which is better known for its single malt Scotch whisky – has launched a new limited edition gin with bota... Read more.

What are your predictions for 2018?

Tue 23rd January 2018



Tue 23rd January 2018

The Tree House in Ayr re-opened at the end of last year after a £400,000 transformation by owners Buzzworks. The restaurant, which has been... Read more.