C&C Considering Selling UK Cider Division
Published on Apr 1 2015 1:25 PM in Drinks
Irish drinks giants C&C is considering selling off its struggling UK cider business, according to one of its investors.
The Bulmers/Magners cider, distributed by C&C, struggles from poor distribution in the English and Welsh markets due to heavy competition. And, according to the Irish Times, shareholders are now "actively evaluating" their options regarding the division.
New York-based company Third Avenue, which owns a stake in the company, told its clients, "The company is actively evaluating solutions to address these issues, which could take several shapes including an acquisition, a partnership or a divestiture of the UK business altogether.”
The note echoes what C&C chief financial officer Kenny Neison has already said after the company aborted a bid to buy UK Spirit pub group last year, when he announced that a "downsize" was a possibility if the purchase didn't go through.
C&C's cider sales have dramatically decreased in England and Wales in recent months. In January the company announced that sales volume was down 12 per cent, while revenues decreased by 18 per cent.