Magners maker C&C Group hit by Scottish drink-driving rules

2nd Jul 2015 08:13

Magners and Blackthorn cider maker C&C Group said it experienced a "mixed" first quarter due to adverse weather conditions and tightening of drink-driving regulations in Scotland.Nevertheless, the company said that after a weaker-than-expected start, a "gradual improvement" is expected as the year progresses.The company said trading in its core markets of Ireland and Scotland was affected by unseasonably cold and wet weather, particularly in May.Meanwhile, tighter drink-driving rules north of the border "add[ed] to the challenges already faced by the on-premise channel and rural/community pubs appear to have been disproportionately affected".However, C&C said it was using cost savings to support marketing and new campaigns for Bulmers and Tennent's have been well received so far.Elsewhere, the group's England and Wales business had a positive first quarter, while US shipments grew partly due to soft prior-year comparisons. Export markets also enjoyed a good start, with solid performances in Asia, Australia and Europe and new market opportunities in Africa and Eastern Europe."Outside of our core domestic markets, growth in the cider category continues to illustrate its long term credentials," C&C said.The stock was down 3.8% at €3.32 in early trading.