Shares in drinks group C&C jumped over 5% today after it said it had agreed a deal with Asahi UK to acquire all of its UK wholesale interests for a “nominal” consideration.
C&C said that after the deal for the Japanese beer brand has been completed, the businesses will be fully integrated into the group’s Matthew Clark Bibendum (MCB) operations.
Matthew Clark Bibendum will also enter into a long-term business partnership associated with Asahi brands in the UK.
C&C said the deal represents an attractive opportunity to structurally grow the MCB business and also includes the full transfer of supply arrangements to the Fuller, Smith & Turner on-trade estate.
Roger White, the chief executive of C&C, said the deal represents an attractive opportunity to provide a significant number of new customers with MCB market leading service and range proposition whilst simultaneously delivering immediate scale and efficiency into the group’s operations.
“We expect the majority of the customer and supplier transitions to be completed in the coming weeks, and for the acquisition to make a small positive contribution to the overall financial performance of MCB in FY27,” the CEO added.
C&C manufactures, markets and distributes branded beer, cider, wine, spirits and soft drinks across Ireland and the UK. Its brands include Bulmers and Magners cider and Tennent’s and Five Lamps beer.
In a trading update also issued today, C&C said that trading in the six months to the end of August has been in line with expectations.
It reported a 3% dip in net revenues compared to last year, which it said reflected growth of 2% in Branded revenues which was offset by decline of 4% in Distribution revenues.
C&C noted that branded revenue growth was supported by continued momentum in its core Bulmers cider and Tennent’s beer brands, favourable weather and targeted marketing activity around the World Cup period.
Its Premium portfolio has also grown as it builds distribution, adding that it saw a “particularly strong” contribution from the Innis & Gunn brand now under the group’s full ownership.
C&C said the revenue decline in its Distribution division was mainly as a result of the planned exit of some lower margin customer business, combined with the continued impact of on-going market decline in outlet numbers and certain drinks categories.
It predicted that underlying operating profit for the first half is anticipated to be in the range of €43-44m, in line with its expectations.
“We remain on track to achieve full year operating profit in line with market expectations, albeit noting that the market conditions remain volatile and we have the important Christmas trading period ahead of us,” the company added.
