C&C announce €200m investment

Drinks manufacturer and distributor C&C has announced a €200m capital investment programme to double its cider manufacturing capacity in Clonmel within an 18-month timeframe.

It is expected that key elements of the capacity increase will become operational in spring 2007. The expansion reflects the rapid growth of C&C’s Magners cider brand.

The resulting investment in both fixed and working capital will reduce the Group’s FCF/EBITDA expectation to a 30-40% range in each of 2006/07 and 2007/08 fiscal years.

This, however, will not affect the Group’s progressive dividend policy.

Managing director of the cider division Brendan McGuinness said: “This is the Group’s largest ever capital investment programme and is designed to resolve our current supply difficulties and provide an ample level of spare capacity going forward”.