Pernod takeover could hit C&C

DRINKS and snack food group C&C could see its profits hit following the takeover by Pernod Ricard of Allied Domecq, whose brands it distributes in Ireland.

Allied yesterday agreed to a cash and share takeover deal by Pernod, headed by Irishman Richard Burrows, worth €10.7 billion. US drinks-maker Fortune Brands are also part of the Pernod bid.

According to analysts, the takeover could have a negative impact on C&C. It distributes a number of Allied Domecq's brands in Ireland, including Malibu rum and Tia Maria. Allied, which once owned C&C, distributes Tullamore Dew Whiskey and Carolan's Irish Cream overseas. The loss of these contracts will be a blow for C&C, with some brokers saying it could shave €2 million from annual profits.