Ahead of its AGM today, drinks maker and distributor C&C Group said it was encouraged by the way in which trade has recovered in the UK and Ireland since the gradual reopening of the hospitality sector.
However, the owner of brands such as Bulmers, Magners, and Tennent’s highlighted that restrictions in both markets remain, with the timing and nature of further easing still uncertain.
The full reopening of hospitality in the UK was recently delayed by four weeks and is now anticipated towards the end of July, whilst the reopening of indoor hospitality in Ireland has also recently been delayed, with a revised date yet to be announced.
In the week ending 27 June, C&C delivered to 82% of the outlets in the comparative week in 2019. Given social distancing and indoor restrictions remain in place, the group stated that volume throughput was adversely impacted in the customers that are currently operating. Nevertheless, C&C said it was encouraged by trading in recent weeks, with good weather aiding outdoor trading over the period.
Following the easing of some restrictions since April and the partial recovery in the on-trade, C&C recorded a “modest” trading profit in May, with this improving further in June.
David Forde, Chief Executive, commented: “Despite restrictions still in place and confirmed delays to full reopening, we remain cautiously optimistic about the gradual recovery of the hospitality sector in our core markets of the UK and Ireland, and we look forward to continuing to support our customers as restrictions are removed.
“As we navigate through this period, our focus is to continue to build and develop our brand and system strength, which underpins C&C’s position as the leading brand-led distributor in the UK and Irish drinks market.”
Last month, C&C launched a rights issue aimed at raising £151m to provide sufficient liquidity to manage the current trading uncertainty and support the business as it emerges from the pandemic.
Forde said today: “Our recent successful capital raise has strengthened the balance sheet and positions the group to take advantage of opportunities to strengthen and grow our business as we return to a more normalised trading environment.”
