Magners maker C&C to produce more drinks in the UK after Brexit
The maker of Bulmers and Magners cider is in late-stage talks to start producing European drinks at its UK plant after Brexit.
Chief executive Stephen Glancey told Reuters that Brexit has presented opportunities for the Irish business.
“You've got other manufacturers coming to us and saying ‘can you manufacture for us in the UK’? … The discussions are reasonably meaningful,” he said.
“We would be reasonably confident that we'll pick up some volumes over the next two or three years at Wellpark [plant] in Glasgow, partly because of Brexit and partly because of the decline of sterling.”
He said the company was also well-positioned to weather the effects of Britain’s departure from the EU.
“If there is a hard Brexit, we would pre-manufacture in the [Irish] Republic, so we've got liquid stock that would see us through two years,” Glancey said.
“We'd package that and get it over to the UK so that we can keep Magners flowing through Cheltenham and right through the summer, so there is no immediate risk there.”
He was speaking after the company announced a 6.4 per cent organic increase in revenue to €839m (£744) in the first half of the financial year.
Revenues increased 186 per cent when including the C&C's takeover of Matthew Clark and Bibendum, which together added €530m to group sales.
The acquisitions were completed in April this year after the targets’ British parent company Conviviality entered administration.
“Looking ahead, we have a degree of momentum in our core business and recognise the criticality of Christmas trading for Mathew Clark and Bibendum. We are very pleased with the way this business is responding following a very difficult trading period earlier in the year, with operational KPI’s now trending satisfactorily in the circumstances.
“That said, it will only be once the business has proven itself through the important Christmas trading cycle that we can be confident that it has been restored to health.”
C&C showed £45m profit after tax, an increase of nearly €6m.
Glancey said the company had been boosted by good summer weather and increased demand during the World Cup, but its key brands also gained market share in key markets.
He said: “Looking forward there is much economic and political uncertainty and of course Brexit. We have plans in place to manage the various scenarios on Brexit that may emerge and do not anticipate material customer or financial disruption.”