C&C predicts modest fall in cider revenues

Drinks group C&C says its revenues for the three months to the end of November declined by 9% compared with the same time the previous year. This figure excludes the impact of the Tennent's business in Ireland, the North and Scotland.

In an interim management statement, it said business conditions in its core cider markets remained tough.

C&C said that revenues at its cider division fell by 13% while its spirits and liqueurs division's turnover decreased by 4%. However, its distribution division saw a 7% increase in quarterly revenues.

C&C said that cider revenues slumped by 17% in the UK, while Irish cider revenues fell by 13%. Cider revenues increased by 3%, however, in the rest of the world.

The group completed the deal to buy Tennent's in September and said the integration of the business is progressing well. It said it now expects Tennent's to make an operating profit contribution of about €7m in 2010 - which is ahead of expectations.

For the nine months to the end of November, C&C said that revenues fell 7% compared to the same time the previous year. The cider division saw a decline of 8%, while the spirits and liqueurs division dropped by 14%. Revenues in the distribution division rose by 16%.

C&C said that overall cider volumes for the month of December are 3% ahead of the same time the previous year. This included a 17% increase in the UK, an 8% fall in Ireland and a 1% decline in the rest of the world.

C&C said it expects to report a modest year-on-year decline in cider volumes for the full year 2010, compared to a volume decline of over 14% in the 2008-2009 financial year.

'Excluding the impact of the Tennent's acquisition, C&C expects to deliver an operating profit income in line with previously stated guidance - towards the top end of the €77m to €82m range,' the statement said.

C&C shares closed down two cent at €2.78 in Dublin.

Meanwhile, C&C has completed the acquisition of the UK cider assets of Constellation Brands. The Gaymer Cider Company assets include a broad UK cider portfolio which includes the brands Blackthorn, Olde English and Gaymers and a range of value cider brands and own label brands for UK supermarkets