C&C shares rise as drinks firm buys stake in UK pubs

Drinks maker C&C said its move into the pub business in England and Wales can boost its signature cider brand.

Shares in C&C rose around 1% after it said it will acquire a minority stake in Admiral Taverns, a chain that owns 845 pubs, in partnership with Proprium Capital Partners and Admiral management.

C&C has paid £37m (€40m) for 47% of Admiral.

The acquisition marks a significant departure for C&C, which has endured a difficult 12 months with its US business struggling and revenues falling in core markets.

C&C, which also sells Tennent’s lager, has been one of the worst performers on the Iseq in the last 12 months. The company has lost a fifth of its value this year and is now valued at €944m.

The move into the UK pub business comes as the firm said sales of Magners were suffering in the face of intense competition in the English cider market.

The Admiral deal will allow it to market Magners in an English market dominated by the likes of Strongbow, it said.

Investor relations head Joe Thompson said: “It certainly is an opportunity for Magners. Cider has branched into two broader markets: The dry and the sweet ciders. We will work with the management of Admiral and the licencees to impress upon them that Magners is a high-quality product and something their consumers will want to sample.”

Interim chief financial officer Jonathan Solesbury said there are opportunities to grow the market share in England and Wales. “Cider is under-represented in these taverns. Ordinarily it is about 20% but it is about 8% in the taverns. There is upside, hopefully.”