Magners owner hits out at Reeves as hospitality crisis hits sales
The maker of Magners and Bulmers cider missed its profit and revenue targets this year, blaming Rachel Reeves’ Budget and the “financial stress” it caused pubs and bars.
C&C Group, which also owns the Orchard Pig and Jubel brands, said it is seeing resilient demand for cider and beer but plummeting sales of high-alcohol drinks have left a bitter taste.
Ralph Findlay, the firm’s chair, said: “The ongoing macro-economic challenges felt across the UK in 2025 proved to be testing as cautious consumers constrained spending in advance of the Chancellor’s Autumn Statement in November.
“Market volumes softened substantially in this period and volumes remained weak in the balance of the financial year despite reasonable trading across the festive period.”
While C&C saw beer and cider sales volumes increase – boosted by a strong interest in stout – the drinks giant said its performance is lagging behind previous years.
High-alcohol sales slump
The firm said its declining sales of drinks to hospitality firms was driven by dwindling takeup for wine and spirits due to a “weaker performance” in hotels, restaurants and casual dining.
Roger White, C&C’s chief executive, also took aim at Reeves’ Budget, as well as pinpointing “ongoing cost inflation [and] a weakening employment market” for the challenges facing pubs and bars.
Consumer confidence recently fell to a two-year low, as Brits prepare to splash out less and retain spending for the essentials.
Hospitality firms had attacked Rachel Reeves’ decision to hike national insurance contributions and minimum wages in recent years, and recent changes to business rates have sent bills soaring for thousands of firms.
Two-thirds of hospitality businesses have said they will be forced to cut jobs and one in seven will shut altogether as a direct result of the “suffocating” tax rises which came into force in April, according to trade body UK Hospitality.
Iran war clouds outlook
C&C said the inflation fears and hit to consumer confidence caused by the Iran war cloud its outlook for next year.
“The important summer months trading period lies ahead, and the macro environment remains unstable meaning forecasting consumer behaviour and demand is challenging for all,” White said.
“Cost inflation, while moderating, remained unpredictable and with recent events in the Middle East we expect further volatility and uncertainty for the foreseeable future,” Findlay said.
The cider owner has recently emerged from a major cost-cutting drive, which it said has “streamlined operations” but came at the cost of job cuts of four per cent of staff.
Pre-tax profit at the FTSE 250 firm fell by 11 per cent to £49.8m in the year to February 2026.
Revenue dropped by six per cent to £1.6bn, which C&C said was in part due to the planned exit from a Budweiser contract in Ireland.