Tennent’s lager will be a focus of further investment as parent company C&C Group sees significant growth potential in the Glasgow-brewed brand.

Chief executive Roger White, who left Irn-Bru maker AG Barr after 22 years to join the Dublin-based company at the start of the year, said the strategy was to invest in its two market leading brands: Bulmers in Ireland and Tennent’s in Scotland.

“The Group has progressed on a number of fronts over the last year, despite the ongoing challenging macro and market backdrop,” he said. “Our two leading brands, Tennent’s and Bulmers gained market share and we see future growth opportunities for both.

“Our premium brand performance is encouraging, benefitting from ongoing consumer appeal for premium beer and cider which is driving growth in this segment.

“Within Distribution, Matthew Clark Bibendum continued to deliver positive momentum, achieving consistently improved service levels, growing its customer base by 8%, providing great range and value.

“Looking ahead, year to date trading is encouraging. With the key summer trading period ahead, we are executing our plans for the year, supporting our customers, investing in innovation and brand-building, people, and systems, whilst continuing to simplify the business and control costs.

“We remain focused on building a solid platform from which we can maximise the potential of the group. We are developing plans to grow sustainably whilst delivering on our financial targets, creating increased long-term shareholder value.

Operating profit was €77.1m (FY2024: €60m), representing a significant recovery in year-on-year earnings. The board has proposed, a final dividend of 4.13 cents per ordinary share, making a full year dividend of 6.13 cents.

Tennent’s outperformed the total beer market in the on-trade channel, increasing market value share by 0.9%.

Its total brand net revenues were down 2% in the period, with pricing partly offsetting a volume decline of 6% reflecting the impact of poorer weather over the summer and the temporary impact of the Euro 2024 football tournament where an estimated 200,000 Scotland fans travelled to Germany over the period.

Brand investment in the year centred on Tennent’s sponsorship of Scottish football as well as the continuation of the brand’s successful ‘OOFT’ campaign.

The macroeconomic environment and October 2024 UK Budget placed a degree of additional pressure on the hospitality sector and impacted consumer confidence more generally, said the company.

Despite these challenges, the number of licensed On-Trade premises is broadly stable year-on-year, with 99,120 outlets trading in 2024 versus 99,113 in 2023. Drink-led venues proved more resilient, growing 0.5% in the last 12 months whereas food-led outlets fell 0.7%.

In the UK off-trade channel, competitive pricing strategies became more prevalent across the market in the latter half of 2024 to improve weak sales performance from earlier in the year.

“The increase in minimum unit pricing in Scotland had a modest impact on volumes in the latter part of the reporting period, and we will continue to assess the ongoing impact of this changed legislation in the Scottish market,” said the company.

In the UK on-trade, the shift in mix towards beer and cider continued, as consumers increased spending on both categories. Consequently, beer has again grown its value share in the on-trade, rising by 1.3% and now representing 44.2% of total category value share.

Within the beer category, the shift towards premium brands has continued. Stout has been the standout performer, with sales value increasing 25% vs the prior year. Offsetting this, wine value share has declined by 0.4%, largely reflecting reduced demand through its two largest channels; hotels and restaurants. Spirits value share has declined by 0.9% in the year.

Interview: Roger White