C&C may consider Magners Brexit shift

C&C Group, the Irish-headquartered drinks producer and distributor, has said it could consider moving some production of its Magners cider from Clonmel, Co Tipperary, to the UK post-Brexit.

Known as Bulmers in Ireland, the cider is branded as Magners in the UK and internationally.

Patrick McMahon, director of strategy and finance at C&C Group, said the company was well-prepared for Brexit, having stockpiled up to €4m worth of stock. He added the business could benefit from its production facilities in both the UK and Ireland post-Brexit.

“Having operations in Ireland and the UK means we are pretty adept at moving stock around and switching it,” he said.

“Certainly having two large production assets in Tipperary and Wellpark [Glasgow, UK], that is not a terrible situation to be in, in the event of Brexit. It provides us with quite a lot of optionality.”

When asked by the Sunday Independent if it had the ability to produce Magners in the UK following Brexit, C&C said: “If we had to, yes. There are ways to do it.

“It wouldn’t be our preference or something we would foresee happening but, then again, there is so much uncertainty around Brexit. We do have contingency plans in place.”

McMahon was speaking as C&C reported positive results in the six months ending August 2019.

In its results, C&C also confirmed it had cancelled several long-term apple supply contracts for its ciders, resulting in costs of €4.3m.

C&C confirmed the contract cancellations were a result of a “structural change” in the cider market driven by the growth of dark fruit cider, which uses a sweeter apple.

Net revenue in the first half of its financial year rose to €874.9m, up 13.5pc.

Operating profit was also 9.2pc higher, reaching €63.8m.

In Britain, volume sales of Magners were down by 2.9pc to €304m, but the brand grew market share in both the onand off-trade channels.