Lockdown blues for Tennent’s

Tennent’s owner C&C Group has revealed it is losing some €7 million (£6.2m) a month while pubs and restaurants remain closed during the coronavirus lockdown.

The Irish firm, whose portfolio also includes cider brands Magners and Bulmers, said this was after around €5m a month in support for furloughed employees, with some 70 per cent of its staff retainedunderthoseschemes.

The group has made no sales through pubs and restaurants since lockdowns came into effect across the UK and Ireland, with the business focusing its efforts on sales through supermarkets, retailers and off-licences in the so-called off-trade market.

Interim executive chairman Stewart Gilliland said: “The ongoing closure of the hospitality sector has material implications for our business and earnings potential, with approximately 80 per cent of our revenue derived from the on-trade channel.

“An emerging trend from this shutdown however has been an immediate shift in consumption dynamics, resulting in increased demand in the off-trade channel. To capitalise on this behavioural shift, we have reallocated resources behind our takehome proposition and seek to optimise our business model in this channel.”

C&C pointed to a “resilient brand performance” for Tennent’s, Magners and Bulmers during the year, against “challenging comparatives”.

Pubs and restaurants have remained shuttered across Ireland since mid March and late March in the UK and are not expected to open until next month in Britain.

The details of lockdown trading came as the group posted a 12.1 per cent rise in pre-tax profits to €104.1m for the year to 29 February. Net revenues for the year rose 7.8 per cent to €1.7 billion.

Sales by volume dipped 2.7 per cent for its Tennent’s lager range in Scotland, however net revenues rose 5.3 per cent.