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U.K. Booze Stocks Slip as Cider Maker Warns of Weak December

U.K. Booze Stocks Slip as Cider Maker Warns of Weak December

U.K. drinks stocks fell on Friday after the maker of Magners and Bulmers ciders warned of a weak festive period because of curbs aimed at stemming the spread of the omicron Covid-19 variant. 

“Conditions for our on-trade business were significantly impacted by renewed government restrictions across the U.K. and Ireland,” Dublin-based C&C Group Plc said in a statement. December delivered volume was just 64% of the same month in 2020, falling short of an expectation of 90%, with the company adding that operating profit for the second half of fiscal 2022 would be affected. 

C&C fell as much as 3.6% in early London trading, while Guinness-maker Diageo Plc declined 2.1%. Tonic water group Fevertree Drinks Plc, which counts the U.K. as its top revenue market, dropped 6.1%. Continental peers AB Inbev NV and Heineken NV each fell more than 1%. The broader European Stoxx 600 index lost 0.6%.

U.K. Booze Stocks Slip as Cider Maker Warns of Weak December

“While disappointing, the update from C&C this morning is unsurprising given the scope of restrictions,” Goodbody analyst Patrick Higgins wrote in a note to clients. 

Last month, the U.K. government said people should work from home again if possible, which was expected to significantly impact footfall at City-based bars and restaurants. Irish bars and eateries, meanwhile, were told to shut daily at 8 p.m. through Jan. 30. 

©2022 Bloomberg L.P.