Tennent’s sales froth up but decidedly tougher in cider amid poor weather

● Irish owner C&C Group’s profits slide 8% on revenues down 6.8% at €273m

A new social media campaign for Tennent’s, Scotland’s bestselling lager, is driving both volumes and sales, Irish drinks group C&C revealed yesterday.

But interim revenues and profits at C&C fell as chief executive Stephen Glancey said volumes of cider in the UK were flat, hit by poor weather.

Magners, the group’s main cider brand in the UK, saw volumes down 6 per cent in the six months to end-august, while Bulmers, its counterpart in Ireland, was off 5 per cent.

It led to a 8 per cent tumble in group operating profits to €50.5 million (£44.8m) on revenues off 6.8 per cent at €273.1m. Tennent’s was a frothier picture, with volumes lifting 0.4 per cent and revenues ahead 5 per cent.

C&C, which last month joined forces with Proprium Capital to acquire Admiral Taverns and its 845-pub estate, said another positive was an increase in operating profit margins to 18.5 per cent from 18.1 per cent, partly on the back of further cost efficiencies.

Glancey said: “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 Great Britain through our agreement with AB Inbev and our planned investment in Admiral Taverns.”

The company’s Scottish drive includedthesuccessfullaunch of Magners Dark Fruit cider north of the Border. Glancey added: “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. This is supported by a new multi media campaign “Here to Serve”.

C&C also said it had seen strong organic growth in its super-premium and craft beer portfolio, with volumes up 24 per cent. There was also continued growth overseas, with export volumes ahead 5 per cent.

Glancey added that in Ireland the group had boosted investment in the Bulmers brand as “100 per cent Irish”, including the rebranded of the packaging, and that its new product Outcider “has resonated with the targeted millennial customer”.

On the outlook, the chief executive said “volatile conditions remain across the industry”, but that C&C’S British business had made “a solid start” to the second half of the financial year.

However, the company added that in a “highly competitive” Irish cider sector trading in the second half had been “marginally slower than expected”.

C&C’S interim dividend is 5.21 euro cents, up from 4.96 cents.