Drinks producer C&C Group has today cut its fiscal 2026 profit forecast, blaming weak confidence following November’s UK Budget that altered buying habits and saddled demand, sending shares down to a near 17-year low.
C&C now expects adjusted operating profit of €70-73m for the year ending February, compared to market expectations of €79.4m according to a company compiled consensus.
Tax hikes in UK finance minister Rachel Reeves’ autumn budget have tightened household budgets, leading consumers in the UK to rein in spending on even some essentials and shift away from higher‑cost categories like wine in favour of cheaper options.
“Our business performance was driven primarily by softer than anticipated demand in hospitality, alongside adverse product mix, as consumers continue to move away from the consumption of wine and spirits, in favour of beer, across the market” C&C Group said in a statement.
While Christmas trading met expectations, the owner of Tennent’s lager and Bulmers cider said January demand remained soft and would likely persist through the end of its financial year in February.
The company is exiting less profitable businesses and reducing volumes in its distribution channel, but warned the lag between revenue declines and cost cuts would keep fiscal 2027 profits at similar levels.
The stock was down 10% and the worst performer on the FTSE midcap index in London trade today.
