C&C selling stake in Admiral Taverns for £55m

C&C Group has announced it is selling its entire minority interest in Admiral Taverns to Proprium Capital Partners for £55m.

The drinks company, which manufactures and distributes brands including Bulmers, originally invested into Admiral Taverns with Proprium in September 2017. The sale of the shares will be completed during the group's 2023 financial year.

As part of the divestment, C&C has negotiated a long-term supply agreement into the Admiral estate including its owned and agency brands.

The group made the announcement alongside its financial results for the 12 months ended 28 February 2022, in which C&C delivered a net revenue increase of 87.8% to €1.4b (£1.2b), driven by a 207.8% growth in on-trade net revenue with fewer trading restrictions in the year.

Off-trade performance remained strong despite the re-opening of the on-trade, with net revenues of €376.3m (£316.6m), down 3.4%.

The business said the 2023 financial year had started strongly with net revenue up 12% on pre-Covid (FY2020) levels for the two months to 30 April 2022 and 140% of the 2021 financial year. The benefit of no on-trade restrictions, easing of the pressures on supply chains and additional public holidays created a more positive trading environment over recent months.

However, the group added that additional cost pressures would "likely necessitate further price increases".

David Forde, C&C Group chief executive, said: "Following a period of unprecedented challenges for the hospitality sector, we are delighted to be back serving our customers and delivering our iconic and much-loved brands to our on-trade and off-trade partners. Encouraged by the reaction and resilience of the industry, we are pleased with how trading has recovered and the subsequent strength of customer and consumer demand, which we believe reflects the enduring importance of the on-trade and the role that it plays in our society…

"Looking forward, we are operating in an evolving and challenging inflationary cost environment and will continue to monitor this closely over FY2023 and beyond. We have already taken action to afford the business a degree of protection, nevertheless we are susceptible to further increases in our cost base which would necessitate further price increases. Despite the current positive sentiment in the hospitality sector post reopening, we are mindful of the pressures being faced by consumers and its potential impact on future demand."