On- to off-trade shift slowing – C&C
A “notable slowing of volume shift from the on-trade to the off-trade” has taken place over the last year according to C&C which published its annual results recently.
Print16 May 2013
Despite this, on-trade LAD volume declined 3% whilst the off-trade declined by 1% but the two percentage point differential “represents a significant narrowing of the gap in channel performance,” notes C&C which adds, “In the three months to April, the on-trade outperformed the off-trade when measured by sales trend”.
Ireland’s LAD market declined 2% in the 12-month period too but total volume sales of cider grew by 1% in the 12 months to the end of January 2013, outperforming the total growth in beer volume sales. Off-trade volume sales of cider were up 6% however giving Bulmers good market share growth.
But net cider revenues were down 10.8%.
Nevertheless, C&C’s international business delivered strong growth with volumes increasing by over 55% in the year to the extent that the Group’s Chief Financial Officer Kenny Neison told an investor conference that it won’t be too long before the Group sells more beer and cider abroad than in Ireland.
Operating profit at C&C’s Irish division fell 11.9% to €38.5 million in the year to 28th February 2013 with net revenue down 9.1% to €92.2 million.
The Group’s beer portfolio – which represents 16.3% of C&C’s RoI portfolio volume – continued to perform well with volume up 11.1% in a beer market in decline by 2%.
Despite difficult conditions here, trading generally appeared to have stabilised in the second part of C&C’s financial year.
Net revenue at C&C Group declined 0.8% to €476.9 million.
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