Tennent’s owner C&C Group has seen a drop in operating profits of 4.9% to €50.5 million for the six months ended August 31, with revenues falling 6.8% to €273.1m and profit after after tax down 5.7%. Boss Stephen Glancey revealed that “less predictable” trading patterns and currency fluctuations and its revised trading agreement with AB InBev had “negatively impacted reported revenues and profits.”
However, Tennent’s performed strongly with sales rising 5% to €148.2m. Said Glancey, C&C Group CEO, “In the UK Tennent’s is one of the few standard lagers in growth outperforming in the critical independent free trade and also the grocery channel.” He added, “The Tennent’s business has momentum in customer recruitment and the multi beverage wholesale and internet platform are both proving to be highly attractive to customers.”
The company invested in Tennent’s founts and a new brand campaign which helped drive share growth (+0.4%), while revenues for Tennent’s grew 5%. More than 4,815 new founts were installed and the company also revealed that it it grew the brands social media engagement by 40% which they believe helped the brands performance.
Said Glancey, “During the first six months, we have continued to drive performance in Scotland, invest behind the strength of our core brands in Ireland and evolve our model in GB through our agreement with AB InBev and our planned investment in Admiral Taverns. Our continuous focus on cost, efficiency initiatives and effective working capital management have also delivered an improved operating margin and strong cash generation.”
The company also saw “strong organic growth in super-premium and craft with volumes +24% across its portfolio. Glancey commented, “Our super premium portfolio is gaining real traction, with the Italian beer Menabrea growing at 62% and Heverlee, our Belgian beer, at 32%. Total revenue in this area, including our recently acquired craft cider brand Orchard Pig, is €7.8 million and growing organically at 27% annually.”