Brexit a worry, C&C says ahead of its AGM
C&C, the makers of Bulmers cider, issued a cautious trading update ahead of its AGM which took place yesterday.
The AGM trading statement does not contain any volume data, instead the company says that underlying trading to-date across core markets has been "satisfactory" and in line with management expectations.
It said its main brand in Scotland, Tennent's, gained market share against what the group said was a "flat market", Its premium and craft brands also performed well in that market.
The group warned about the impact of Brexit, saying that if the current exchange rates continue, financial performance for the year would be negatively impacted on account of currency movements.
C&C said market trade in Ireland was "subdued" with beer and cider segments recording declines. To combat this, Bulmers was relaunched in March with a new media campaign.
Under what was described as "intense" competition, Bulmers lost more draught distribution, C&C said.
The company did report that Bulmers experienced growth in the grocery channel. Its premium and craft brands also continue to grow strongly in Ireland, C&C said.
The group's exports had a solid start to the year, with Europe maintaining its strong performance, while Australia and New Zealand have improved year-on-year.
However a slower start has been seen across newer African and Asian markets.
In the US, business is described as "stable", but the cider category remains in negative territory, which is holding back any market share recovery, C&C said.