News

August 09, 2008

C & C’s Success In Cider Could Eventually Attract A Bidder

By Sally White

C&C was just too successful. Increasing cider’s share of the UK drinks market attracted attention, so the big boys decided that this sector was ripe for a boost to their profits too, jumping in to the market just when trading conditions got tougher. Result – collapse of Irish cider maker and distributor C&C’s share price from EUR7.02 to EUR 2.17. Shareholders, to say the least, were not happy!

While the market is still suffering, C&C has now begun to repair its margins, at least. In May the firm predicted mid-single digit revenue growth for its 2008/2009 fiscal year, but this now looks difficult to achieve.  However, the latest figures, for the four months ended June 30, show that although revenue was down by eight per cent – due to a ten per cent fall in cider sales – profits were up. The UK and Irish weather has been unhelpful and the economic background does not exactly...