C&C Group, the producer behind the Magners and Bulmers cider brands, reported missing its profit and revenue targets for the financial year ending February 2026, attributing the shortfall to the ongoing challenges faced by the hospitality sector. The company, which also owns Orchard Pig and Jubel, highlighted the impact of economic pressures, including government measures introduced in the 2025 Budget under Chancellor Rachel Reeves, as well as broader financial stress affecting pubs and bars across the UK.

Chair Ralph Findlay described 2025 as a testing year, noting that cautious consumer spending ahead of the Chancellor’s autumn statement led to a substantial softening of market volumes, which remained weak throughout the remainder of the financial year. Despite an increase in beer and cider sales—bolstered by growing demand for stout—C&C’s overall performance lagged behind previous years, primarily due to a steep decline in sales to the hospitality sector. This was particularly evident in the reduced consumption of wine and spirits in hotels, restaurants, and casual dining establishments.

Chief Executive Roger White cited multiple factors influencing the pressured market, including “ongoing cost inflation” and a weakening employment market that have made trading conditions difficult for pubs and bars. White also pointed to the economic environment shaped by the 2025 Budget, which included increases in national insurance contributions and minimum wages, as contributing to diminished consumer confidence. Consumer confidence recently hit a two-year low amid growing concerns as households prioritize essential spending.

The hospitality industry itself has voiced strong opposition to the tax increases and cost pressures, with trade body UK Hospitality warning that two-thirds of businesses in the sector expect to reduce staff numbers, and one in seven may be forced to close entirely as a consequence of higher business rates and operating costs introduced in April.

C&C’s financial results reflected these market headwinds, with pre-tax profit decreasing by 1% to £49.8 million and revenue falling 6% to £1.6 billion, partially due to the company’s exit from a Budweiser distribution contract. The group recently completed a significant cost-cutting initiative, which involved a reduction of around 4% of its workforce. Additionally, concerns about inflation and geopolitical tensions, including the ongoing conflict in Iran, have further clouded the company’s outlook for the year ahead.