Analysts urge M&A to boost C&C
C&C Group, owner of Bulmers, Magners, and Tennent’s, faces limited medium-term growth unless it expands its brand portfolio through mergers and acquisitions, according to a new RBC Capital Markets report.
Bulmers, C&C’s flagship cider brand, remains central to its identity and will feature prominently in any future growth strategy
RBC analyst Tania Maciver suggested a deal in the region of £200m (€229m) for a leading premium or craft drinks brand would better position C&C against global competitors.
Such a move would represent close to 40% of the group’s current market value.
While C&C has focused in recent years on divesting assets and stabilising its distribution arm, RBC notes that top-line growth for its existing brands remains constrained.
Maciver argues that a broader and more diverse portfolio is key to long-term potential, particularly as consumer preferences shift in the UK and Irish drinks markets.
C&C has recently emphasised innovation and margin growth under new chief executive Roger White, while also facing leadership changes with CFO Andrew Andrea set to depart next year.
Shares, which had rallied earlier this year, have since lost ground amid broader sector weakness.
RBC concludes that without a renewed M&A strategy, C&C risks being seen more as a strong UK distribution business supported by a relatively narrow brand stable, rather than a brand-led drinks group.
