Drinks group C&C is in advanced talks with operators in mainland Europe to manufacture their products at its British plant after Britain leaves the European Union, its chief executive said today.
C&C has manufacturing operations in the EU and Britain through plants in Ireland and Scotland.
The maker of brands including Magners, Bulmers and Tennents has consistently said it is well positioned regardless of the way in which Britain leaves the bloc next year.
Chief executive Stephen Glancey said Brexit is also throwing up opportunities for the group.
"You've got other manufacturers coming to us and saying 'can you manufacture for us in the UK'? ... The discussions are reasonably meaningful," Glancey told Reuters after C&C reported a 16% rise in first-half operating profit.
"We would be reasonably confident that we'll pick up some volumes over the next two or three years at the Wellpark plant in Glasgow, partly because of Brexit and partly because of the decline of sterling," he added.
Glancey said negotiations were with companies in parts of the EU other than Ireland.
C&C, which acquired the wholesale arm of collapsed British drinks company Conviviality earlier this year, said in its half-year results that it had plans in place to manage the various scenarios that may emerge from Brexit and does not expect material customer or financial disruption.
"If there is a hard Brexit, we would pre-manufacture in the Republic, so we've got liquid stock that would see us through two years," Glancey said.
"We'd package that and get it over to the UK so that we can keep Magners flowing through Cheltenham (horse racing festival) and right through the summer, so there is no immediate risk there," he added.
Drinks group C&C today reported improved operating profits and revenues for the six months to the end of August, on the back of its purchase of Matthew Clark and Bibendum.
The maker of Bulmers and Magner cider bought the company - the largest independent distributor to the UK on-trade drinks sector - in April.
C&C said today that its total group revenue jumped by 186% to €838.7m, while operating profits rose by 16% to €58.4m in the six month period.
The company is proposing an interim dividend of 5.33 cent per share, up 2.3% on the same time last year.
C&C said that trading had been very strong over the six month period mainly due to the "favourable" summer weather and the impact of the World Cup.
It said it was "very pleased" with the way the Matthew Clark and Bibendum business was responding after a very difficult trading period earlier in the year.
"That said, it will only be once the business has proven itself through the important Christmas trading cycle that we can be confident it has been restored to health," commented Stephen Glancey, C&C's group chief executive.
C&C said that revenues in its Irish operations rose by 6.6% to €124.5m, while operating profits inched 0.4% higher to €26.1m. Volumes for the six month period increased by 4.8% to 756 kHL.
It noted that competition remains intense in the Irish market with significant new product launches by major international brewers across both beer and cider.
The company said its Bulmers cider brand had an "excellent" first half, returning to volume growth of 5%. "The performance this summer demonstrates the inherent strength of the brand and its close affinity with Irish consumers," C&C said.
It also noted that its Magners cider brand in Northern Ireland saw its volumes and revenues grow by double digits.
Meanwhile, C&C said its super premium and craft portfolio had another strong year. Dublin craft brewery Five Lamps increased its revenues by 50%. The recently launched Dowd's Lane range of traditional ales, stouts and ciders have been well received by consumers, it added.
Net revenues in C&C's Great Britain division rose by 8.3% to €163.5m, while operating profits increased by 9.9% to €23.4m with the division positively impacted by the good weather and the soccer World Cup.
"C&C's core business is in good health with a strong balance sheet and a focus on shareholder value.
"Management are confident in the medium term that Matthew Clark and Bibendum will unlock significant value and opportunity for all shareholders," Stephen Glancey said.
