New alcohol price rules could benefit Bulmers maker C&C
Irish drinks company C&C could be set for a boost off the back of proposed new alcohol pricing rules.
Analysts said the rules, which could see a bottle of wine cost at least €8.80 and a can of beer cost at least €2.20, might push people back into pubs, where C&C has better margins.
"We believe minimum alcohol pricing represents a net benefit to C&C as it reduces price disparities, both between drinking at home and in the pub and between C&C's premium products and cheaper alternatives," Goodbody's Simon Matthews said.
"Both these shifts are advantageous to C&C, the former due to the higher margins it earns in the on-trade and the latter due to increased sales volumes via consumers trading up as the price difference between pints and off-licence products will be narrowed," he added. The Alcohol Beverage Federation of Ireland (ABFI), which represents Irish alcohol manufacturers and suppliers, said it welcomed the move towards a statutory code.
"Drinks industry suppliers and manufacturers want to play a role in the development and introduction of evidence-based solutions that will fundamentally address alcohol misuse," ABFI director Ross Mac Mathuna said.