Drinks and snacks group C&C is in talks with potential new distributors for its spirits and liqueurs, chief executive Maurice Pratt said yesterday.
Allied Domecq is currently the international distributor for C&C brands like Tullamore Dew whiskey, while C&C is the Irish distributor for Allied Domecq brands, which include Tia Maria and Malibu, but this deal is set to end next January.
Pernod Ricard is poised to take over Allied. Pernod already owns Irish Distillers, which owns competing brands to Tullamore Dew, and which already has a distribution network in this State.
Allied Domecq is responsible for selling 60 per cent by volume of C&C's spirit and liqueurs. Some analysts believe that the transition could hit the Irish company's earnings.
Speaking after the company's agm in Dublin yesterday, Mr Pratt said the company was in talks with new distributors. "We're very confident that we will be able to find distributors for our products of at least equivalent quality to Allied Domecq," he said.
Mr Pratt added that he believed Diageo's €300 million purchase of Bushmills would boost the Irish whiskey market as a whole.
Diageo owns Guinness and has considerable marketing and distribution clout in Ireland.
Chairman Tony O'Brien acknowledged in a statement that the change to a new distributor could have a short-term impact, but said the company was confident it could put in place alternative arrangements.
"C&C's strong distribution organisation should be a positive factor in any brand re-alignment which takes place in Ireland," he said in a reference to the Diageo take over of Bushmills.
Mr O'Brien said that it was happy with the roll out of Magner's Cider in London. The company has not suffered as a result of Scottish and Newcastle's attempt to go head-to-head with it in this premium cider market.
The company last week announced that it planned to shut its Tayto Crisps manufacturing facility in Coolock, Dublin, and contract out the business to a competitor, Largo Foods, with the loss of 98 jobs.
The plant would have required an investment of €13.5 million to upgrade it. Mr Pratt said yesterday that he expected the redundancy process to go smoothly.
