C&C Group (LON:GCC) slashed its fiscal 2026 profit outlook, citing weaker-than-expected consumer demand in the hospitality sector. The alcoholic beverage maker now forecasts adjusted operating profit between €70 million and €73 million, down from previous board expectations. The company attributed the revision to a post-Budget slump in consumer confidence.

Trading during the Christmas period met expectations, but softness persisted into January. A notable shift away from wine and spirits toward beer created an adverse product mix for C&C. Despite brand strength from Tennent's and Bulmers, subdued market volumes and competitive pricing eroded margins. The company remains cash generative with a strong balance sheet.

Management plans to exit less profitable distribution channels, which may cause short-term profit dilution. They are prioritizing operational simplification and margin rebuilding to support medium-term recovery. The board reaffirmed its €150 million capital return plan, with €92 million already returned. Macroeconomic headwinds are expected to continue into the next fiscal year.