C&C Group appoints former S&N Chief Dunsmore as its new CEO
It’s a funny old world. The man partly responsible for C&C’s problems in the United Kingdom, the former boss of Scottish & Newcastle, John Dunsmore, 49, has been named the new CEO of the troubled Irish Drinks group.
On 10 November 2008, the maker of Magners Cider revealed it had lured Scottish & Newcastle’s former management team to the firm in an effort to turn around the struggling business. They made him an offer he could not refuse: he is to receive a shares bonanza worth EUR 7 million if he doubles C&C’s share price, currently EUR 1.15, to EUR 2.50.
In a surprise move, John Dunsmore, the former S&N Chief Executive, was appointed to head the Irish business. Mr Dunsmore will be joined by former S&N chief operations officer Stephen Glancey, 47, and his S&N colleague Kenny Neison, 39, who joins as strategy director, it was reported.
Mr Dunsmore was the head of S&N up until its takeover by Heineken and Carlsberg earlier this year, and was seen as instrumental in raising the eventual takeout price. He replaces Maurice Pratt who announced his resignation from the Magners cider maker on 9 October 2008 – the day the company reported a 71 percent fall in underlying first-half profit.
C&C’s shares have reflected the fortunes of its key brand Magners cider in recent years. After a rapid rise in value in 2005 and 2006, the shares have fallen more than 90 percent in the last two years.
As CEO of S&N, Mr Dunsmore was partly responsible for C&C’s problems. Heavy promotion behind S&N’s own cider brand Bulmers stopped and then reversed Magners’growth in the United Kingdom. Both Bulmers and Magners are premium bottled ciders served over ice.
C&C owns the Bulmers brand in the Republic of Ireland but not in the United Kingdom. S&N’s UK operations – including its cider brands – are now owned by Heineken.
The salaries of all three appointments will include a high element of share-based incentive, the company said. This pay scheme will involve the issue of up to 16 million new shares at EUR 1.15.
C&C makes Magners cider in the United Kingdom, Bulmers cider in the Republic of Ireland, as well as Tullamore Dew Irish whiskey and Carolans Irish cream.
