Will C&C deal get Budweiser flowing in Irish pubs again?

CAN C&C breathe new life into Budweiser in Ireland? For many years the lager, owned by AB InBev, was a staple of pubs up and down the country. Under a partnership agreement, Guinness owner Diageo Ireland brewed, marketed and distributed Budweiser and Bud Light across Ireland.

However, if you ask for a pint of Bud these days, you’d be hard pushed to find one.

You are likely to be offered Rockshore, a lager brewed in the home of Guinness, St James’s Gate.

The beer is relatively low on alcohol and is light on calories, alligning with some of the key trends that appeal to modern drinkers.

If not Budweiser or Rockshore, HopHouse 13 is another alternative from Diageo.

This time it appeals to those who are thirsting for a drink in the vein of craft beers.

It is easy to see why Budweiser has got lost in all this and why its relationship with Diageo was destined to come to a natural end.

Ahead of results on Thursday, C&C last week announced that it has taken over the exclusive distribution of the brands.

Greg Johnson, analyst with the UK’s Shore Capital, fancies C&C’s chances of putting some fizz back into Budweiser sales.

“Longer-term, we believe that there is the opportunity to return Budweiser in Ireland to its former glory (previously one million hectolitres),” he said.

The beer currently has an estimated 3-4pc share of the long-alcoholic drink market — which comprises lager, cider and other long drinks — in the pub trade.

Sales of Budweiser are better in offlicences and supermarkets but margins are tighter there.

Johnson’s view is that alongside Bulmers and C&C’s more niche brands such as its craft beer Five Lamps, C&C will have a more compelling offer for pubs and may win over taps for both Bulmers and Bud.

Budweiser has lost ground in pub presence

However, it will take time.

Budweiser has lost ground not just in terms of pub presence, but in consumer minds also. The beer market is more competitive and fragmented than ever before.

It will take investment to stabilise and grow the Budweiser brand.

And it will require a significant push from C&C’s new yet-to-be-named chief executive.

Johnson believes the longer term impact could be quite significant for the group.

It is worth noting that while Diageo’s Rockshore may have eaten Budweiser’s lunch, the Guinness owner is not yet satisfied.

Almost exactly a year ago, Diageo launched Rockshore cider, which was seen as an attempt to take on the main players in Ireland.

Heineken has already upset C&C’s apple cart with its Orchard Thieves launch which has taken a decent chunk of the cider market.

Bulmers still dominates — but it is an increasingly competitive space.

Many businesses have work to do on gender equality

INTERNATIONAL Women’s Day is a great opportunity to remind those in power that huge gaps in gender equality remain in corporate Ireland.

It seems obvious that a lack of women at the top is wrong for so many reasons.

There has been progress — but there remains so much to be done.

Research by global executive search business Accreate shows that women account for 21pc of board members on

Irish listed companies.

That is low but has come from an embarrassingly low level of just 8pc in 2013.

Some 15 of our listed companies — 35pc — still have no female board representation, according to the firm’s research.

The EU has been attempting for more than a decade to boost the number of women in business.

It has done this through a series of proposals including one that all stock exchange-listed companies must have at least 40pc representation for each gender among their non-executive directors.

But there is clearly still a very long way to go.

One reason given is often the lack of suitable female candidates for the roles.

Yet Accreate has found that boards often know exactly what type of person they want to appoint before they go looking.

“Our experience as executive head hunters in this space is that boards tend to hire what they know.

“They continue to be conservative in their selection processes,” said Caroline Baldwin, partner at Accreate.

“There are countless board-ready, experienced female leaders primed to take on their first board appointments and add real value and fresh perspective.

“They are being overlooked as they may not have had prior board experience,” she said.

The time for many boards to open their minds is well overdue.