C&C buys US firm as UK markets dry up
Magners cider brewer C&C Group confirmed it is to buy Vermont Hard Cider to boost its presence in the fast growing US market while sales of cider in the UK fell after a washout summer.
Magners cider brewer C&C Group confirmed it is to buy Vermont Hard Cider to boost its presence in the fast growing US market while sales of cider in the UK fell after a washout summer.
Operating profits fell 2.7% to €65.6m for the six months to the end of August from the same period a year earlier. Net revenues slipped 2% to €263.4m after poor summer weather and weak cider consumption hit sales in the UK and Ireland.
C&C, which saw sales of Magners in the US surge 16% in the six months to August, said it will pay $305m for Vermont Hard Cider which makes Woodchuck cider.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
In the increasingly competitive UK the group said stronger sales of its Tennants lager offset some of the weakness in both Magners and Bulmers over the first half of the year.
Looking ahead C&C confirmed that full year 2013 operating profit is expected to be in the range of €112m to €118m.
CEO Stephen Glancey commented: "Despite a very challenging trading and economic backdrop, the group's results for the period demonstrate the resilience of our business model."
"While our core cider brands Magners and Bulmers both saw volume declines in the period, other parts of the business performed well. The Tennent's brand continues to outperform with net revenue and operating profit growing ahead of the Scottish beer market. Our International business, including acquisitions, continues to grow at an exciting pace, with volumes increasing by over 50%."
C&C has increased its interim dividend by 9% to four cents.
CJ
Get the latest financial news, insights and expert analysis from our award-winning MoneyWeek team, to help you understand what really matters when it comes to your finances.
MoneyWeek is written by a team of experienced and award-winning journalists, plus expert columnists. As well as daily digital news and features, MoneyWeek also publishes a weekly magazine, covering investing and personal finance. From share tips, pensions, gold to practical investment tips - we provide a round-up to help you make money and keep it.
-
Review: Eden Roc Cap Cana – fun, sun and golf in the Caribbean
Travel Eden Roc Cap Cana in the Dominican Republic offers everything from relaxing by the pool to a world-class golf course
-
Reeves delays cash ISA reform, but savers are not out of the woods yet
The chancellor has reportedly delayed plans to cut the cash ISA limit, which were set to be announced at Mansion House on 15 July, and will take more time to consult with the industry