High-end retailer LK Bennett on the verge of collapse

BULMERS owner C&C expects premium products to account for an increasing amount of its sales, with demographic trends pushing alcohol consumption down.

The company published a trading update yesterday, saying it expected earnings before interest and tax to be at the upper end of market estimates this year.

The results are being helped by positive momentum at wholesaler Matthew Clark Bibendum, which C&C bought out of administration.

The shares rose 1.27pc in Dublin trading yesterday.

But CEO Stephen Glancey acknowledged yesterday that demographic trends pose challenges to drinks companies.

Analysts at Berenberg recently said this posed a challenge to C&C, saying that in the age of social media younger people were more pre-occupied with healthy living. “There aren’t many

‘People drink less but they drink better’

mature markets where alcohol consumption is growing... people are drinking less but they’re drinking better, they’re going to premium,” Mr Glancey told the Irish Independent.

“Equally they’re going to local, artisan and craft... that’s the market and you’ve got to play in it.” He said the “craft super-premium” portfolio is currently 7pc of the company’s net sales value, and that he wants to get that figure up to 10pc.