C&C Group plc, the cider and spirits manufacturer, said today in a trading Statement for the 5 months ended 31 July 2009, that revenue declined by 5% on a constant currency basis versus the same period last year, comprising a drop in cider sales of 4% and a decline in spirits and liqueurs revenue of 22%. C&C also announced today that it is to acquire the businesses of Anheuser-Busch InBev in Ireland, Northern Ireland and Scotland for a total consideration of £180 million (approximately €205 million).
C&C said cider volumes increased by 3% whereas its Spirits & Liqueurs volumes declined by 17% during this period.
In the Republic of Ireland, Bulmers cider volumes grew 3% against the backdrop of a weak market and a challenging economic environment while in Great Britain, Magners cider volumes increased by 1%.
The spirits and liqueurs volume decline in the period is attributable to continuing de-stocking in its major markets, however, there are some indications that this de-stocking process may be drawing to an end.
C&C reaffirmed its guidance that operating profit for the financial year ending 28 February 2010 for the existing business of the group, before taking into account the impact of the proposed acquisition of the Irish, Northern Irish and Scottish businesses of AB InBev, will be at the top end of the previously stated guidance range of €77m to €82m.
Acquisition
The acquisition of Anheuser-Busch InBev operations in Ireland, Northern Ireland and Scotland, include
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Tennent's, Scotland's leading lager brand;
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The Wellpark Brewery in Glasgow;
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An on-trade loan book of approximately £27 million; and
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Distribution rights to certain ABI brands in Ireland, Northern Ireland and Scotland, including Stella Artois and Beck's, as part of a strategic partnership with the world's largest brewer.
C&C says Tennent's Lager is Scotland's leading lager brand where it accounts for 55%. of volumes of lager sold to the Scottish on-trade and around 30% of the Scottish off-trade. The business is the leading brewer in Scotland by volume brewing Tennent's brands and also producing and selling the Stella Artois brand, which has a 5% volume share of on-trade lager in Scotland. In Northern Ireland, Tennent's brands have approximately 25%. of the on-trade draught lager market.
The business generated net sales of £162.2 million and EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) of £21.8 million in the year ended 31 December 2008. It employs approximately 300 employees in total in Ireland, Northern Ireland and Scotland.
