C&C Group – current trading ‘encouraging’, consumers spending more on beer and cider as shift towards premium brands continues: C&C Group has said current trading is “encouraging” and that consumers are spending more on beer and cider, as the shift towards premium brands continues. In its accounts for the year ending 28 February 2025, the group said: “In the UK on-trade, the shift in mix towards beer and cider continued, as consumers increased spending on both categories. Consequently, beer has again grown its value share in the on-trade, rising by 1.3% on an MAT basis and now representing 44.2% of total category value share. Within the beer category, the shift towards premium brands has continued. Stout has been the standout performer, with sales value increasing 25% versus the prior year. Offsetting this, wine value share has declined by 0.4%, largely reflecting reduced demand through its two largest channels; hotels and restaurants. Spirits value share has declined by 0.9% in the year. The macroeconomic environment and October 2024 UK Budget have placed a degree of additional pressure on the hospitality sector and impacted consumer confidence more generally. Despite these challenges, the number of licensed on-trade premises is broadly stable year-on-year, with 99,120 outlets trading in 2024 versus 99,113 in 2023. Drink-led venues have proved more resilient, growing 0.5% in the last 12 months whereas food-led outlets fell 0.75%” It comes as the group reported net revenue grew from €1,625.5m in 2024 to €1,665.5m, with revenue growth in Matthew Clark Bibendum and in-line performance across its branded portfolio. Adjusted Ebitda was up from €93.7m to €112.0m while adjusted profit before tax increased from €38.8m to €55.9m. The company said Tennent’s and Bulmers achieved market share gains, maintaining market-leading positions, and a Magners relaunch is underway, with initial off-trade gains. It reported recovering customer momentum, with Matthew Clark Bibendum customer numbers up 8%, and a strong recovery in distribution service levels, with 98% on time and 96% in full. It said current trading is encouraging and no change is expected to the outturn for the financial year. Chief executive Roger White said: “The group has progressed on a number of fronts over the last year, despite the ongoing challenging macro and market backdrop. Our two leading brands, Tennent’s and Bulmers gained market share, and we see future growth opportunities for both. Our premium brand performance is encouraging, benefitting from ongoing consumer appeal for premium beer and cider, which is driving growth in this segment. Within distribution, Matthew Clark Bibendum continued to deliver positive momentum, achieving consistently improved service levels, growing its customer base by 8%, providing great range and value. Looking ahead, year to date trading is encouraging. With the key summer trading period ahead, we are executing our plans for the year, supporting our customers, investing in innovation and brand-building, people, and systems, while continuing to simplify the business and control costs. We remain focused on building a solid platform from which we can maximise the potential of the group. We are developing plans to grow sustainably whilst delivering on our financial targets, creating increased long-term shareholder value.” Chairman Ralph Findlay added: “I am pleased to report solid progress across the group in the 12 months ended 28 February 2025. We commenced a journey to recover profitability, based on providing consistently high levels of customer service and achieving ongoing growth in customer numbers and continued strong market performance in our branded business. In addition, improvements in supply chain efficiencies across our production, distribution and warehousing operations, contributed to the increase in underlying profitability. Group revenues were in line with last year, reflecting growth in distribution offset, as previously indicated, by the disposal of our non-core soft drinks business in Ireland, lower contract volumes and a softer cider market in the UK and Ireland due to poor weather over the 2024 summer months. The group has bank facilities extending to 2030 and therefore currently has no short-term refinancing requirements. Over the year ahead, we plan to further invest in our people, customer proposition, brand innovation and systems, underpinning the board’s confidence in our ability to achieve sustainable, long-term profitable growth.” Findlay said in recognition of the group’s continuing strong cash generation, the board has reconfirmed its intention to distribute €150.0m to shareholders through a combination of dividends and share buybacks, over the three fiscal years FY2025 to FY2027. In FY2025, €52.9m has been returned to shareholders, including the FY2024 dividend and FY2025 interim dividend. A further €15m tranche of the group’s share buyback programme commenced on 1 May 2025. The board has proposed, subject to shareholder approval at the AGM, a final dividend of 4.13 cents per ordinary share. In addition to the interim dividend of 2.0 cents per share paid to shareholders on 1 December 2024, this represents a full year dividend of 6.13 cents per share to shareholders.

 

Premium Club subscribers to receive updated segmented Multi-Site Database and videos from Excellence in Pub & Bar Conference on Friday: Premium Club subscribers are to receive the updated Multi-Site Database on Friday (30 May), at 12pm. The next Propel Multi-Site Database provides details of 3,401 multi-site operators and is searchable in seven main segments. The database features 994 (29%) operators from the casual dining sector, 797 (23%) pub and bar operators, 578 (17%) cafe bakery operators, 474 (14%) quick service restaurant operators, 288 (8%) hotel operators, 221 (6%) experiential leisure operators and 54 (2%) fine dining operators. The database is updated each month, and this edition includes 18 new companies. The database includes new companies in the cafe bakery sector such as Solihull coffee shop business Brew Twenty Three, Cardiff coffee shop business Brodies’s Coffee Co and London coffee operator Kat Coffee. Before that, at 9am, Premium subscribers will receive all the videos from this month’s Excellence in Pub & Bar Conference. The 13 videos include Chris Hill, managing director of Urban Pubs & Bars, and Sir Tim Martin, founder and chair of JD Wetherspoon. Premium Club subscribers also receive access to five other databases: the Multi-Site Database, the New Openings Database, the Turnover & Profits Blue Book, the UK Food and Beverage Franchisor Database and the UK Food and Beverage Franchisee Database. All Premium Club subscribers will be offered a 20% discount on tickets to Propel paid-for events including the Operational Excellence Conference in July and discounts on specialist sector reports. Operators that are Premium Club subscribers are also able to send up to four members of staff to each of our four Multi-Club Conferences for free. Premium Club subscribers receive their daily Propel Info newsletter 11 hours earlier than standard subscribers, at 7pm the evening before. They also receive videos of presentations at eight Propel conference events two weeks after they are held. This represents around 100 videos of industry insight over the course of the year. Premium Club subscribers will be sent adedicated monthly newsletter that will highlight key updates in the sector and direct subscribers to all the vital content their membership offers. Premium Club subscribers also receive exclusive opinion columns every Friday at 5pm, which include the thoughts of Propel group editor Mark Wingett and a host of industry leaders from across the sector. A Premium Club subscription costs an annual sum of £495 plus VAT for operators and £595 plus VAT for suppliers. Companies can now have an unlimited number of people receive access to Premium Club for a year for £995 plus VAT – whether they are an operator or supplier. Email kai.kirkman@propelinfo.com today to sign up.

Vocation Brewery makes a loss due to rising production costs and investment in future growth: Yorkshire brewer Vocation made a loss due in the year to 31 March 2024 due to rising production costs and investment in future growth. The company saw a pre-tax profit of £289,224 in 2023 turn into a loss of £752,153. Its turnover rose slightly from £20,014,155 in 2023 to £20,740,213. Of this, £20,620,115 came from the UK (2023: £19,548,014) and £120,098 from the rest of the world (2023: £466,141). Director John Brooks said: “Profit before tax has decreased to a loss due to rising production costs and investment in administrative functions to support future growth. The directors consider that the forthcoming financial year will be another year of growth, albeit at a more moderate trajectory given the challenges facing the overall economy. While sales in the wider market are constricting, Vocation is forecasting revenue growth. Having reached a size that requires increased beer duty rates from January 2024, cost pressures are being closely managed. The directors believe that the group and company sit well placed in terms of strategic and market position and has had the right level of investment to maximise its ability to generate sales and satisfy customer demand.” No dividends were paid (2023: nil).