Bulmers-owner Posts 2% Net Revenue Growth In Irish Market In FY 2019
C&C plc has reported a 2% net revenue growth in the Republic of Ireland for its financial year, 2019.
Bulmers had an ‘excellent year’, returning to volume growth +1.6% and revenue growth +2.9%, for the 12 months ended 28 February 2019.
‘In line with the broader market, this growth was led by a strong outperformance in the off-trade, growing both volume and share from 45.4% to 49.2% while maintaining a price premium over standard lager at 10%,’ the integrated premium drinks company said in a statement.
The groups long alcoholic drink (LAD) volumes in the ROI were up +0.9% during the period benefitted from the good summer and the World Cup in the first half.
The groups super-premium and craft portfolio had 'another strong year' in Ireland.
‘Five Lamps, our Dublin craft brewery increased volumes +35%, despite unprecedented launch activity by the major brewers,’ it said.
The branded beer, cider, wine, spirits, and soft drinks distributor highlighted that recent innovation with Five Lamps Red Ale and Five Lamps Light, further strengthens its crafts portfolio and its brand proposition in the Dublin market.
Overall, core C&C business organic net revenue increased by +3.2% and it operating profit was up +3.3% during the period.
Stephen Glancey, C&C Group CEO said that the financial year 2019 was a ‘transformational year’ for the company.
“Despite strong multi beverage brand led positions in Ireland and Scotland, access to the wider UK on-trade had always been a challenge,” Glancey said.
“The acquisition of Matthew Clark and Bibendum changes this dynamic.” He explained.
In April 2018, C&C announced had bought Conviviality's wholesale arm Matthew Clark and its wine, spirits and craft beer distributor Bibendum, as well as four smaller businesses belonging to the two.
Strong and Relevant
He noted that at the heart of the business the Bulmers, Magners and Tennent’s brand remain remarkably strong and relevant to today’s consumers.
"We will continue to invest behind the long term health of these brands and innovate to ensure that we adapt to changing consumer requirements and needs," he said.
Glancey outlined that the groups super-premium and craft range has delivered stellar growth in volume and value for the company.
“We will continue to nurture and grow distribution for these authentic products protecting long term equity value,” he said.
He attributed this growth to the Matthew Clark and Bibendum networks, which he said, “of course, will help achieve this ambition.”
“In the acquired business our plan is to steadily restore the equity value rather than chase short term growth or synergy,” Glancey added.
“Value and earnings from a low cost base will take priority and our focus will be on low risk, high value product and customers.”
© 2019 Checkout – your source for the latest Irish retail news. Article by Donna Ahern. Click sign-up to subscribe to Checkout.