C&C Group's Strategic Pivot: From Wholesale Drift to Brand-First Focus
After a tough FY26, the drinks group is splitting into two distinct businesses, betting on brand growth and a leaner wholesale arm.
CCR.L · Earnings Call · 2026-05-25
A Year of Headwinds, and a New Plan
C&C Group's FY26 results were a frank acknowledgment of a business under pressure. Revenue fell 6%, operating profit dropped to €70.5 million, and the company booked €40.7 million in exceptional costs. The wholesale business (Matthew Clark Bibendum, or MCB) saw revenue decline 8%, while the branded business grew 4%. CEO Roger White opened the call with a candid assessment:
we do not yet have the resilience or agility as a business to withstand the headwinds that we have faced.
The headwinds are well-trodden: hospitality channel pressure, alcohol consumption moderation, and the shift from wines and spirits to long alcoholic drinks (LADs). But White made clear this is not just a cyclical downturn — it's a structural wake-up call. The answer is a deliberate, two-pronged strategic reset: C&C Brands and MCB, with C&C Brands as the growth engine and MCB as a renovated wholesale operation targeting a 3–4% operating margin.
Brands: The Growth Story
The branded business delivered 4% growth, driven by 9% pricing (low-single-digit price, rest mix). The company's brand portfolio is being resegmented into core, premium, and heritage, with a clear mandate to drive volume growth — not just revenue. Tennent's celebrated 140 years and gained share in Scotland; Bulmers Zero grew 24%; Magners, after being taken back in-house, is recovering. The acquisition of Innis & Gunn adds a premium craft beer, and the company's route to market is being leveraged. White emphasized:
“we have a lot of capacity that we can grow our business. We're agile, we're flexible. We can move quickly when opportunities arise.” — Roger White, CEO · 2026-05-25
The World Cup (Scotland's first qualification since 1998) is a clear catalyst for Tennent's, and the company is already teasing a new creative campaign. The brand-led pivot is also about intentionality — moving away from "just making sure we were selling something" to a focused, profitable, and volume-driven approach.
MCB: Renovation, Not Revolution
The wholesale arm is the problem child. MCB's margin has collapsed, and the company is targeting a return to 3–4%. The integration of Matthew Clark and Bibendum—a single product list, a single organization—is the first step. This is about cost control, commercial discipline, and data. The company has spent the year building a cost allocation model and a data integration platform to "create one version of the truth."
“revenue declined 6% year-on-year... reflected branded growth of 4% and decline in the distribution business of 8%” — Adam Phillips, CFO · 2026-05-25
This is not just about cutting costs; it's about making the wholesale model sustainable. With the hospitality channel under pressure, MCB must become a more efficient supplier. The company is also seeing the World Cup as an opportunity to drive on-trade momentum, but the margin recovery plan is explicitly independent of market tailwinds—"we've got to do it with the mix as it is."
The Bottom Line
C&C is a company in transition. The new leadership team (70% refreshed), the data DNA program, and the strategic separation are all building blocks. The September Capital Markets Day will be the moment of truth, providing financial targets and capital allocation details. For now, the message is: a difficult year, but a clearer path forward. The market will be watching to see if this pivot gains traction, and whether the company can finally deliver on its promise of volume growth and profitability.