The company behind Tennent’s Lager says Scotland’s best-known beer brand boosted third-quarter revenues despite a continued slide in sales volumes.
C&C Group said income from sales of the Wellpark-brewed tipple grew by 7.5% during the three months to the end of November. But the quantity sold in bars, off-licences and supermarkets slid back 3.6% against the same period last year.
The performance was a considerable improvement on the first six months of the brand’s financial year, when volumes were down more than 6%.
On a year-to-date basis, volume fell 5.5% during the nine months, with revenue at constant currency up by 7.3%.
C&C hailed a “strong” revenue performance from Tennent’s, which it said “remained solid”.
Newly-launched sister beer Caledonia Best was said to be “performing well”, buoyed by an advertising campaign and partnership with Scottish Rugby.
The Dublin- and London-headquartered drinks group, which has interests in cider brands Magners and Gaymers, said it would reaffirm its profit guidance at the lower end of the previously-stated €112 million to €118m range – though this was before the impact of November’s €58m deal to buy Irish drinks supplier and distributor Gleeson Group, and the recent acquisition of the craft Vermont Hard Cider Company.
While the Gleeson deal is subject to approval from Irish competition authorities, both are expected to be immediately earnings accretive on completion.
C&C says it is focused on exploiting international demand for cider while the “very-challenging” domestic market is struggling.
UK cider volumes fell 11.9% in the quarter, the firm said, with revenue down more than 19%. C&C said increased competition in a tough market had caused significant price pressure.
International markets performed well, with cider and beer volume growth of 28%. Meanwhile, Tennent’s continued to build market share in Ireland, improving volumes by 22% in the quarter.
business@thecourier.co.uk