Tennent’s is continuing to perform well in the Scottish independent on-trade with total branded volumes increasing by 7%, according to the latest interim Management Statement covering the period from 1 March 2013 to the 31st May issued by owners C&C Group. However Tennent’s UK volumes saw a decline of 12.4% with revenues down 6.1%.
Stephen Glancey, C&C Group CEO, commented, “Our Tennent’s business has again performed well and provides a degree of balance to a competitive UK cider market.”
The report revealed that “Cider UK, Q1 volumes declined in both Magners and Gaymers brands with over 85% of the volume loss driven by the off-trade channel which remains intensely competitive. Magners volumes declined nearly 20% while Gaymers saw a decline of 25%.”
The Group forecasts operating profit for the 2014 financial year to be in the range of €125m to €132m. The expected outcome represents year-on-year earnings growth of between 10% and 16%.
Glancy continued, “We remain focused on developing our multi-beverage capability in core markets and investing in customers through our trade lending model.”
The new UK ‘Beer Barometer’ shows pub beer sales slipped 3.4% in 2011, but off trade sales were down 3.7%
The figures, published by the British Beer & Pub Association, also revealed that the fall in beer sales has slowed. The fall in pub sales of 3.4% was the slowest rate of decline since 2004. This trend is also linked to a slowing in the rate of pub closures. It is the first time since 1996, when the European Championships were held in England, that the off-trade has put in a weaker performance than the on-trade.The BBPA believe it could be halted if the Government abandons damaging plans for yet-more, above-inflation rises in Beer Tax in the March Budget.
Brigid Simmonds, Chief Executive of the British Beer & Pub Association, comments, “The decline in beer sales has slowed, but these figures show the sector cannot afford another round of inflation-busting, Beer Tax hikes in the Budget. This will delay any potential recovery in an iconic and economically vital British industry.”
She continues, “A change of course, giving brewers and pubs a chance to invest and expand their operations – could create over five thousand jobs in 2012 –which should be a great year for British beer and pubs with the Queen’s Jubilee, Euro 2012, the Olympics and Paralympics. These events could provide a real boost for the UK economy and boost employment – but this will only be possible if the Government reverses planned tax increases and damaging over-regulation.”
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UK Quarterly Beer Barometer Q4 2011