C&C Set To 'Stabilise' Irish Performance In FY2017: Analyst
Published on Mar 15 2016 9:27 AM
Shore Capital analyst Phil Carroll has said that he expects C&C Group to 'stabilise' its performance in Ireland in the coming financial year, following a trading update issued by the cider maker last week.
Carroll was speaking in the wake of a C&C Group Capital Markets Day, at which the group set out its strategy for the coming year.
Following the event, Carroll said that C&C Group management is "going to be executing plans to stabilise Bulmers in Ireland, which has been impacted by the launch of Orchard Thieves by Heineken and the success of some innovation work by Diageo."
Plans for the Bulmers brand include "improving in-outlet execution with new draft pumps and glassware, a new progressive discount pricing scheme in the on-trade and price support in the off-trade," he explained.
Carroll also noted that operational challenges with regard to the integration of the former Gleeson Group business into C&C Group are "now in the past", adding that "management is also focused on driving the service offering in wholesale in Ireland (and Scotland), with advice around the retail proposition for customers not just about product delivery."
In the UK, where its Magners brand has struggled of late, C&C plans to "launch a new campaign with new packaging," as well as "monitor pricing closely to ensure no gaps build with competing products and brands".
Last week, C&C Group said in a trading update that it anticipates its operating profit to be ‘in the region of €103 million’ in FY 2015/16. Its results are due to be issued on 11 May.
© 2016 - Checkout Magazine by Stephen Wynne-Jones