Football helps C&C hit its goals

IRISH drinks maker C&C Group stood by its plan to grow earnings this year as a sharper focus on beer and cider plus a football-heavy summer helped offset economic weakness.

The firm, whose brand portfolio has expanded to include Scotland's leading lager brand Tennent's, said it expects full-year operating profit to be in line with expectations.

The group added that it was pleased with the performance of its cider brands, which include Blackthorn, Olde English and Gaymers, in the year to date.

Although C&C remains cautious about the macroeconomic outlook in its main markets in Britain and Ireland, good weather in June and the World Cup had a positive impact on volumes in the off-trade.

The firm's finance director, Stephen Glancey, said: "The broad theme is that the Irish consumer is hugely challenged and will be challenged for quite a while."

However, the rate of decline in the sales of Magners cider in Britain has slowed as C&C catches up with rivals who managed to grow volumes despite the economic crisis.

Chairman Tony O'Brien added that C&C was "increasingly well positioned to deliver consistent performance and growth".

The firm bought the businesses of Anheuser-Busch InBev in Ireland, Northern Ireland and Scotland for 180 million last year, as well as the UK assets of Constellation Brands - The Gaymer Cider Company - for 45m.

In June, it completed the sale of its spirits division to William Grant for 260m and said it will use the proceeds of the sale to reduce debt and invest in the continued development of the cider-led long alcoholic drinks business.

The group will report its first-half results on 12 October. C&C made a full-year net profit of €73.5m (61m) for the 12 months to the end of February, due to a restructuring of the businesses and focus on the long alcoholic drinks market, helped by its acquisition of Tennent's.