C&C retakes control of cider portfolio from Budweiser supplier

Drinks suppliers C&C Group and AB InBev have restructured elements of their trading relationship.

 

The mutually agreed changes mean that C&C will reassume control and distribution of its cider portfolio in Britain from 1 January 2025, with brands including Magners and Bulmers.

 

On the same date, AB InBev will assume control and distribution of its beer portfolio, including Budweiser, Corona and Stella Artois, in the off trade in the Republic of Ireland.

 

C&C believes that bringing the sales, trade marketing and distribution responsibilities in house will “provide both companies with the opportunity to strengthen their respective brand portfolios and distribution platforms”.

 

Meanwhile AB InBev said it has an “effective distribution partnership” with C&C and remains “committed to close collaboration to ensure a seamless transition for customers”.

 

Brian Perkins, president of Budweiser Brewing Group, part of AB InBev, said: “C&C Group and AB InBev have established a valuable partnership over the years, and we will continue to build upon this across the UK and Ireland.

 

"We are confident about this new direction for InBev in the Republic of Ireland, and we are delighted to be able to leverage the full strength of our portfolio to accelerate growth in this key market.”

 

Ralph Findlay, chief executive and executive chair of C&C, added: “We’re excited about the opportunity to develop and invest in our Magners brand to drive growth as part of our cider portfolio across the on and off trade in Great Britain.”

 

It comes as C&C released an update on the first half of its 2025 financial year. Earnings in the six months to 31 August 2024 have been in line with expectations, with net revenues expected to be -3%, reflecting growth in its Matthew Clark and Bibendum divisions.

 

Underlying operating profit is expected in the range of €39m-€41m (£33m-£35m).

 

This steadying in financial fortunes follows the firm posting a £96m loss in the year to 29 February 2024, following accounting errors discovered in its previous results, which prompted then-chief executive Patrick McMahon to stand down from his role.

 

Last month, C&C’s shareholders voted against its 2024 directors’ remuneration report, in an advisory poll.

 

Earlier this year, activist shareholder Engine Capital took its concerns about the drinks business public, publishing a scathing open letter branding the company as a “perennial underperformer” and encouraging it to conduct a strategic review in preparation for a sale.

 

The US private investor, which owns just under 5% of C&C’s shares, then withdrew its proposed nominations for two “highly qualified” director candidates following a commitment to “work constructively together”.

 

It had aimed to persuade the drinks supplier to accept investment banker Ryan Dublin and Alan Hibben, a former investment banker and private equity executive, onto its board. It wrote an open letter urging the need for boardroom at C&C change after “years of underperformance”.

 

C&C subsequently appointed former PwC managing partner Feargal O’Rourke as an independent, non-executive director. In the firm’s latest update, it reiterated that it intends to make a further non-executive appointment to the board in the near future.

 

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