C&C, Budweiser to Restructure Distribution Agreement

By Anthony O. Goriainoff

C&C Group and Anheuser-Busch InBev's Budweiser Brewing agreed to restructure an existing distribution deal, with C&C retaking control and distribution of its cider portfolio in Great Britain and Bud of its beer portfolio in the retail channel in Ireland.

Irish alcoholic-drink maker C&C said Monday that the move should allow both companies to strengthen their respective brands and distribution platforms by bringing sales, marketing and distribution in house. The relationship between the two companies will be restructured from the beginning of next year, C&C said.

For the first half of its financial year to Aug. 31, the company behind ciders Magners and Bulmers and lager Tennent's said it estimates underlying operating profit--which strips out exceptional and other one-off items--at between 39 million and 41 million euros ($43.2 million-$45.5 million), in line with expectations. For the same period last year, the company reported an operating profit before exceptional items of 30.5 million euros.

The company said market conditions remained challenging, but that it was making progress toward its operating profit target of 100 million euros by fiscal 2027.

Net revenue is estimated to have fallen 3% for the period, C&C said. The company reported net revenue of 872.5 million euros for the year-prior period.

The decline reflects the effect from the sale of its NAB business in Ireland, lower contract brewing volumes and softer cider volumes in the U.K., it said.

C&C said it was launching a share buyback of 15 million euros as part of a three-year program of 150 million euros.

Shares in early trading in London rose 1.3% to 1.70 pence.

Write to Anthony O. Goriainoff at anthony.orunagoriainoff@dowjones.com

(END) Dow Jones Newswires

September 09, 2024 04:29 ET (08:29 GMT)

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