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Our Strategy

Our Strategy

Our ambition is to be the pre-eminent integrated brands and drinks distribution business serving the UK and Ireland drinks markets

Provide a range of local and core brands, premium, craft and third-party brands that is unrivalled.
Our distribution infrastructure provides market leading national scale, reach and efficiencies.
These brands and asset base are underpinned by our offer: dedicated and passionate people; enhanced customer service; market insight and value.
The Group has sustainability at its core – with the target of delivering to a better world.

Strategic Pillars	Invest and grow our portfolio of leading local, premium and craft beer and cider brands.	Strengthen our position as the No.1 drinks distribution platform in the UK and Ireland.	Capital allocation to enhance growth and shareholder returns.
Medium Term strategic goals	Brand and product investment to build value of key brands over the long-term Leverage key brand strength and market position to grow our portfolio of premium and craft brands Successful brand development and launches to meet changes in consumer demand Build on “partnership for equity” brand relationships to provide route to market access	Continue the optimisation of network and wider system Deliver unrivalled portfolio strength, value and service to the UK and Irish hospitality sectors Commercialising the unrivalled data and insight on the hospitality sector	Target leverage of less than 2.0x net debt / EBITDA Inorganic opportunities that strengthen our brands and system Invest in sustainability & technology Return capital to Shareholders
Measurement	Cash generation and conversion Revenue growth Enhanced margins Share growth and brand health scores	Margin expansion in our distribution business	Net Debt/EBITDA EPS growth ROCE

Achievements during FY2022	Link to Strategic Pillars
Investment across our core branded portfolio with multi-channel advertising campaigns and promotional activity. We have seen our brand health scores for Tennent’s and Bulmers improve year on year. Tennent’s and Bulmers volume share of the off-trade lager and cider market, 24.0% and 50.5% respectively continues to represent share growth compared with the pre-pandemic levels. Premium beer portfolio has continued to progress with IFT penetration in Scotland growing to 40% of IFT outlet base from 35% pre-pandemic. In addition, growing brand health scores for Heverlee alongside volume and net revenue growth in the off-trade.	Invest and grow our portfolio of leading local, premium and craft beer and cider brands.
Return to profitability from June 2021 aligned with easing of government restrictions in our core markets with on-trade net revenue building back to 75% of FY2020. Successfully servicing demand following the speed and strength of customer and consumer demand as government restrictions eased. Leveraging our size and scale, in addition to our inhouse secondary logistics operation to deliver market leading service despite the widely publicised supply chain constraints in the UK. Launch of an ecommerce platform in our Bibendum Wine distribution business in January 2022, ensuring that all of the Group’s on-trade customers can now order online. Effective management of inflationary cost pressures with cost reduction programme, price increases and hedging of input costs.	Strengthen our position as the No.1 drinks distribution business in the UK and Ireland.
Strong liquidity position of (€438.7m) and Net debt/EBITDA of 3.4x. Our strong underlying cash generating characteristics have been reflected in an encouraging performance with FCF conversion in FY2022 of 35.6%. Delivery of €18m annualised cost savings against pre-COVID cost base, protected against wage inflation and other costs in FY2022. Focus on our core business with the divestment of our minority interest in Admiral Taverns for gross cash consideration of €65.8m (£55.0m). As part of the divestment, C&C have negotiated a long-term branded supply agreement into the Admiral estate which includes our owned and agency brands. C&C’s sustainability efforts were acknowledged with Tennent’s winning two prestigious awards during 2021. Sustainable Brewery of the Year at the Scottish Beer Awards and a Good Practice Award at the VIBES Scottish Environment Business Awards. Continued sustainability commitment with investment at our Clonmel manufacturing site into the removal of single use plastic in its canned products. In addition, creation of Ireland’s biggest rooftop solar panel farm which will generate 10% of the site’s electricity requirements going forward.	Capital allocation to enhance growth and shareholder returns.

Our core strategic objective is to deliver earnings growth.

Existing Businesses

Create an environment that ensures the health and safety of our colleagues. Further, establish a business culture that nurtures engaged, inspired and committed colleagues, investing in key capabilities for the future
Grow and strengthen our portfolio: growing cider share and building momentum in our premium beer portfolio as consumer preferences evolve
Leverage our scale and reach to drive operational efficiencies in our distribution infrastructure, optimising our capacity and ensure a market leading cost to serve
Drive better customer service through our C&C GB change programme with a simplified and integrated approach which will enhance customer experience and ultimately drive efficiencies into our back office
Enhance our offer: commercialising the data and insight that is available; continuing to develop our ecommerce offering; and building stronger partnerships with ‘equity for growth’ investments or complimentary agencies

Capital Allocation

Maintain the strong cash conversion characteristics of the business
Deleverage the balance sheet, targeting a medium-term target of less than 2.0x Net Debt/EBITDA
Invest in our brands; review inorganic opportunities and return excess capital to shareholders

Environmental, Social and Governance

Execute a credible sustainability strategy focussed on people and planet