Magners cider maker C&C aims to cut back after fizz goes out of Christmas salesComments Off on Magners cider maker C&C aims to cut back after fizz goes out of Christmas sales
The group, which this month pulled out as rival bidder for pubs chain Spirit leaving it to be bought by Greene King for £774 million, said it would advance plans to “significantly reduce costs” in England and Wales.
It did not specify what this would mean in jobs but said it aimed to return its cider business to “acceptable levels of profitability”.
In the three months to the end of November, Magners’ cider volumes in England and Wales dropped 9.8% but the value of sales was down 18.2% as heavy discounting took its toll. Things were no better through December.
In Ireland sales volumes fell by 3.3% and in Scotland by 2.4%. In the US the picture was better than in the first half but sales were still down 16.2%.
C&C said it expects operating profits for the year, which ends next month, to come in at around 115 million (£90 million), slightly down on last year and well below analysts’ forecasts of 127 million.
The shares dropped 29 cents, or 8%, to 3.94.