C&C takes swipe at smoking ban in trading statement

In its first interim report since its initial public offering (IPO) and listing on the ISEQ and the London Stock Exchange, C&C Group has said group turnover is up by about 4% while margins were "broadly unchanged".

"Performance in each of the Group’s three divisions (alcohol, international spirit & liqueurs and soft drinks and snacks, was broadly in line with C&C’s expectations," the company said in a statement to the stock exchange today.

The outlook is boosted by a growth of about 4% in the alcohol division's principal brand, Bulmers.

However, the company took a swipe at the smoking ban, blaming it for being "a contributory factor in the estimated overall decline of 2% in the long alcohol drinks market in the five months to July 31 2004".

"The full year financial impact of the ban is dependent on consumer behaviour over the winter period," C&C said today.

The group’s export cider brand, Magners, has increased market share in Northern Ireland, the company said, though no precise figures were released.

C&C has put the currency impact of the weaker US/Can dollar at €6.8m in the full year compared to the previous year.

In ts snacks division, C&C says the launch of the Tayto Honest range has been "successful".

The company said: "The favourable prevailing economic conditions in Ireland are expected to continue throughout the remainder of fiscal year 2005 but the effect of the smoking ban in the winter period remains unpredictable. However, first half performance gives confidence that the Group is on track to achieve its full year financial and commercial objectives."

C&C brands include Bulmers cider, Ballygowan bottled water, Club Orange soft drinks and Tayto crisps. The group also distributes in Ireland several leading international brands owned by third parties, such as 7UP and Pepsi soft drinks, and Volvic and Evian bottled water, and a wide-ranging portfolio of wines and spirits. In addition to its Irish operations, the Group exports spirits and liqueurs to over 80 overseas markets and exports cider to the United Kingdom, the United States and Continental Europe.

The company, which employs around 2,000 staff, has its main manufacturing and distribution sites in Cork, Dublin, Clonmel in Co Tipperary and Newcastle West in Co Limerick.