C&C Group plc (CCR) Earnings Call Transcript & Summary

Great. Good afternoon, everybody, and welcome to the C&C Capital Markets Day. My name is David Forde. I'm the group CEO. And before we start, I just want to point out some safety features. There's no plan today for a fire drill. So if the alarm does go off, please make it away as quickly as possible to the 2 doors here on my right-hand side, where from there, you'll be escorted to the safety zones. Rest rooms are in the back if anybody needs them. I would also draw your attention to our disclaimer. I won't take you through it. We have a lot more important stuff to deal with today, but the disclaimer for all of you is important. Very excited to share our plans, and I'm going to share my plans and our plans with you today with 4 of the colleagues, Patty McMahon, our CFO. We have Lucy Henderson, the Marketing Director for C&C in GB. Clara Shand, who is the Commercial Director for C&C GB; and Richard Hayhoe, who is our Group Corporate Affairs Director. So over the next 3.5 hours or so, we're going to take you on what I hope is a very, very exciting journey, a journey that's going to convince you about the growth opportunities and the growth plans that we have at C&C moving forward. And how we're going to do that for the next half hour, I'm going to take you through a little bit of the introduction and the journey of C&C so far where we've got to. At that stage, I'm going to hand over to Patty, Patty is going to take us through the financials into a little bit of a dive into FY '22, but then we look very much forward to the next number of years. From there, we're going to hand over to Lucy. Lucy is our marketing expert, and she's going to take us through brands and how we're going to build our brand portfolio in C&C over the next number of years. We'll take a little break and then we're going to hand over to a Clara. Clara Shand is going to take us through and talk about our system, the system, our distribution system, our manufacturing infrastructure and how we're going to use that as a competitive weapon for C&C in the years ahead. And then we will move into sustainability, the critical element of running a business today in society. And again, Richard is going to take us through the exciting progress that we have made in our sustainability agenda. But again, the ambitious plans that we have for the next number of years. And then we'll wrap up, hopefully, with what we'll feel a very logical summary and investment thesis, why our company is an exciting business to either be an investor in today or to consider investing into -- for the future. We want to leave plenty of time for Q&A. And then given that we are in such a beautiful venue in London, the sun is shining, I'm certainly sure by the time 5 clock comes, we'll all be looking forward to a glass -- a nice glass of beer and nice glass of cider, because that's what we do in our business. We're in the joy business, and nothing beats after a long hard days of work spreading a little bit of joy together. And if I start, I think one of the things people ask me a lot about is what kind of company are you trying to create in C&C? This is a business that's morphed for many, many years, but where is it going to? And people talk a lot about vision and purpose values. I think they're important. I think they're important if you live by them. And we've distilled it down into 3 simple statements. In terms of our vision, we want to be the preeminent brand-led distribution platform in the U.K. and Ireland. Some people think we're there already. We don't. We're going to demonstrate today how we are going to get there. You're never there. And certainly, when you use words like preeminent, you realize that you have a lot of work to do to get better. It's a journey of continuous improvement. But our role in life is beautiful. We bring joy, we bring remarkable brands, and we bring remarkable service. Our customers must value our service, our consumers must love our brands. Again, it's a great thing to do. And that's underpinned by 3 important values in our business. One is respect for people and planet. This is a company that deeply cares about our people and we deeply care about the planet. And you're going to see that in spades today. Also, we're a business that's about joy. Every time you click a glass with a friend in a bar or you open a can by yourself at home and you put that beer or cider or glass of wine to your lips, it's a joyous moment. We're not in pharmaceuticals, we're not in heavy engineering, we're just in a business bringing joy. And it's what makes our business very attractive for great colleagues. People like to join our business if they want to bring joy to life. It's a great role in our business. And finally, quality is at our core, and I don't just mean about the products. We produce fantastic ciders. We produce fantastic beers. What's really, really important is quality in everything we do. Quality in our relationship and our service with customers, quality in the way we deal with stakeholders like our shareholders and the analyst world, the banking world, quality in the way we deal with NGOs and charities and governments. We set a very, very high benchmark for ourselves and most importantly, quality in the way we deal and work with our colleagues in our business. There are almost 3,000 people that work in C&C. And since we last met, I think it's just over 4 years ago since we had our last Capital Markets Day, a lot has changed. And what we've point out here is going to be peppered through our presentation over the next few hours. We're going to understand a little bit what's happening with the consumer and premiumization and what's the opportunity for C&C. We see that the consumer is changing, health and wellbeing is very important, but also with the respect for the planet, and you're going to see that coming through very strongly in our plans. But also, we're not naive to the pressures that the consumer is beginning to feel probably for the first time in many years. The consumer is feeling pressure, and that is something that we have to be deeply aware of as we build our plans and deliver our programs over the next number of years. But life also for our customer has changed a lot in the last 4 years. The off-trade has had a good run and the off-trade is an incredibly important part of our business. We've had a good run in the off-trade as well, fueled by COVID, fueled by the on-trade lockdowns. We've seen city center venues struggle post reopening. The whole issue of people getting back to work, Mondays and Fridays people working from home. Thursday becoming a new Friday, but the landscape for our on-trade customers has changed. But also, they face challenges, staff have become an issue, staff shortages has become a new thing since the last time we met. And again, we'll talk a lot about that as we go through today. But also, our customers have had to take price, particularly in the on-trade. A pint of lager is 20% more expensive today than it was pre-COVID. Price in the on-trade from consumers out to customers has moved quite significantly. Our customers have had to take it. Amongst our competitors, we've seen consolidation, Marston's and Carlsberg were one of the biggest consolidations in the U.K. distribution landscape, the exit of counterpoint in Ireland. The world of distribution since we last met, has become more difficult. The weaker are beginning to struggle, a stronger have opportunities. And again, Clara is going to talk about that a lot today. The 3PLs were struggling financially, but the last time we met it's even more difficult today and the outlook mostly very, very challenging for them moving forward. And again, we're all well aware of the labor shortage, but particularly in the world of logistics driver shortages, which consumed us last May, June and July, we'll come back on that a little bit later. And finally, for our colleagues, life has also changed. The pandemic has had a material impact on people. And they're changing their outlook. They're looking for balance. They're looking for flexibility. We're meaningfully talking about mental health. We're meaningfully engaging and supporting our colleagues. And again, Richard is going to talk about that in quite some detail moving forward. And of course, many of our colleagues are looking at the labor market in a different way than they did in the past. The job for life, not anymore. People are willing to take a chance. People are willing to move, people are willing to move to a completely different geography. Some people are even working in a different country. So the labor market is moving. And again, these are things that we need to think about. But again, we will pepper our presentation today with lots of references to some of these trends. But I want to come back a little bit to C&C and give you a flavor of what our last 12 or 14 months have been like because it's always nice to look forward, but it's interesting to understand the basis upon which we're looking forward and where our company has come from. And I'm going to take on a little bit of a time warp, but going back to last January, January 2021. I left Galway in the West of Ireland with my family, and I was driving back to Cork where I live, and I was driving back into lockdown. It was one of the bleakest journeys of my life, because we knew in Ireland that the lockdown was going to last until April. And we have had the kind of the full lockdown 7 or 8 months before when the weather was good, but this is going to be difficult. And also for our customers, it was tough. So we did that and as I got back a couple of months later, I got a call from Andrea Pozzi, who is our MD for C&C GB. He said, David, it was a Friday morning, he said, David, I got bad news, we've just been attacked. And all our systems in Matthew Clark and the vendor are shutdown, it's a blue screen. I didn't know anything about cyberattack. We immediately launched our Crisis Committee and we started dealing with that. But at that time, we were also planning to integrate Matthew Clark and the vendors distribution business in the U.K. that's a bad thing to do. To integrate a distribution business, in a business that has no IT systems. But we made the decision to do that 4 months earlier, there was no going back. And we made that decision a month before the on-trade started to reopen in the U.K. because we weren't quite sure when the on-trade was going to reopen, but we had to make a decision. And of course, the on-trade reopened well, everybody had been locked up for 3 or 4 months. The on-trade reopened well. We were dealing with a cyberattack, it was quite a challenge. And then we began to see in June that for the first time, supply chain -- supply constraints started to emerge, the Suez canal got blocked as a major shipper of wine, as one the largest importers of wine into the U.K., that became a real challenge for Clara. And that happened when we were in the middle of our rights issue, which again is something that you don't do too often. We're very grateful for the support we got from our shareholders. But for management and management time, it was a tremendous challenge. We then enter the world in July of labor constraints, no drivers. You couldn't get petrol in 4 courts in GB. They were talking about bringing the Army back onto the roads, bizarre stuff, bizarre stuff for our business. And we were doing it at the time that we had planned, again, to integrate the Matthew Clark's distribution system in Scotland, with Tennent's distribution system in Scotland, very complex integrations. Then we embark on integrating C&C in GB, Matthew Clark Bibendum and TCB into 1 operating unit. Clara is going to talk about that later. Andrea is heading it up and that was quite a challenge. And given all of the challenges that we had on supply, in September, we started working really closely with our largest customers in the U.K., in particular, to make sure we could deliver Christmas for them, because supply was so tight, labor was so tight and we said if we don't collaborate together, we will not pull off Christmas, which went remarkably well. In November, we're beginning to feel the pressure on price. So we delivered a 3.5% price increase to our business. That was very, very useful. Again, never straightforward what we did this. And then in December, Omicron came. And the great plans that we had laid with our customers in November or in October and the stock that we had pushed in, in November sat in customers' warehouses in December. Christmas just didn't happen. In January, the good news was restrictions were removed, and we said maybe COVID is behind us. We began to feel the pressure on inflation. And then finally, we had the tragic situation in Ukraine unfold, which is, of course, a tremendously difficult humanitarian situation. But it's also from an economic point of view, beginning to have impacts on our business. What's the point of this slide? The point is this, we couldn't control above the line. What we could control was everything below the line and just look in the crisis of what C&C did. Look at the agility, the dexterity, the determination and the commitment of this company to adapt, to move forward, to take a hit, to change and to keep making the right decisions to build a better business. We simply didn't waste the crisis. We did not waste the crisis. It was a tough journey. That chart was tough, the toughest time in my career. The toughest time for many of my colleagues in this room, the toughest time for every colleague in C&C, but we've made the business a stronger one. And when I now look at moving forward and building the strategy for C&C, there are 3 things that are really important in determining our strategy moving forward. And these are 3 big trends that I don't think are going to go away, and they will have a material impact, I think, on our business and on our industry for many, many, many years to come. And the first is around regulation. And what we're seeing in all our markets is alcohol regulation is intensifying. The implementation of MUP in Scotland, the -- and in Ireland, the implementation of structural separation of alcohol in Ireland, a revised duty, excised duty regime being implemented in the U.K. and so on and so forth. What you're seeing is post-COVID Government wants to make our world healthier, government needs to make our world healthier, and one of the ways they're doing that is by targeting alcohol and particularly targeting the marketing of alcohol. And I've been around this industry for a long time, 33 years. In every market, where marketing is targeted where the market darkens, the importance of distribution comes to the forefront. If you can't market your brands, if you can't sponsor events, if you can't do advertising, if prices are controlled, the one thing that becomes really important is the guy that controls the distribution. The second thing that's happening is -- and we experienced it ourselves, the consumer is drinking and exploring more brands and more categories. Consumer choice is increasing. You go into a bar -- if you went into a bar 20 years ago, you kind of knew what you're made was going to order. Today, you go into a bar, you don't even know what category people are going to order from. I go into a bar, and I go and have some wine, I got some spirits, and I've got some beer. I go and some spirits, I have a gin. You go to the bar, you wonder, what gin will I have? You asked a barman and he says, well, what do you want? What do you have? Well, we have all of these. Well, what would you recommend? Well, I recommend this one? Okay, I'll take that one. That's what happens every day. 10 years ago, there was 1 red and 1 white in a bar. Today, there's 20 reds, 20 whites. They used to be 7 or 8 beers today, there's 20 beers. But the power has moved to the retailer, people are making their choice at the point of purchase. And the guys who can get their beers, their ciders, their wines, their spirits on the bar, behind the back bar, visible are the people that are going to win, and that again plays back into the power of distribution. And finally, sustainability is with us to stay. Consumers demand is -- they expect that brands and companies are credible, they're authentic and that they have a conscience. And within that context, we're beginning to see that companies are also realizing now that they have to start reducing their emissions. But not just Scope 1 and Scope 2. What we're seeing now is particularly big pump companies, they're starting to engage with and saying, if we don't collaborate with the system, with our supply chain, we're not going to hit our targets. And if we don't hit our targets, the investment world is not going to like it, shareholders are not going to like it, but most importantly, our customers are not going to like it. So they're starting to engage with us in a way they've never engaged in the past. And if you think about it, Governments are not going to allow 10 or 15 trucks run through the village to call to the dog and duck every second day of the week. Governments are going to tax carbon off out of the market and they're going to make the polluter pay. Let's go to force customers to reduce the frequency of delivery and to deal with the consolidator that can be the one-stop shop. And that is, again, the importance of broad distribution with great service is going to become very important. And if you look at those 3 trends that are here to stay, everything points to strong distribution, becoming more important today and more important tomorrow than it's ever been in the past. In the past, distribution was taken for granted. It was something that was available on tap there was overcapacity, and it was cheap. And in the last couple of years, distribution has become a rare commodity, it's difficult to run. You have to do it very, very well, and you have to have real sustainability credentials in it. So important for us in our business. And if you look at how we're doing just in the short term with our business and in particularly using our distribution business to drive scale, what you see is post-lockdown, the winning categories have been spirits and premium beer and calories like champagne has done marginally well, wine, cider and standard lager has struggled. From a distributor's point of view, that's very interesting. Because distributing a leader of beer is a lot different than distributing a liter of vodka, which they're a lot different than distributing a liter of water. And in a tight distribution market, you really begin to think about how am I maximizing the value of my fleet, but also how important am I to my customer. And when we look at our share in the on-trade of drinks consumed, our share of drinks consumed in the on-trade has increased by 8.2%, and we now account for 1 in every 5 drinks consumed in a GB on-trade outlets. That's growing. But more importantly, while we see and albeit from a small base, our premium brands, which are seeding in the market are also growing and even a large brand like Bulmers continues to grow. So as we use our distribution system, we're seeing that we're able to grow our share of drinks consumed in the market. And if we look forward and we look at our growth strategy, it's very simple. And I think one of the key messages I'd like to leave with you today is our strategy has to be simple. If a strategy is complicated, it usually fails. And I think our strategy is quite simple. Today, we deliver to about 30,000 outlets in the U.K. and Ireland, 20,000 we deliver direct and about 10,000 outlets we deliver to a central depot and after it's redistributed by a customer. An example, St Austell, we deliver down to St Austell, to their depot, they deliver out to their 300 pubs. Robinsons in the Northwest, we delivered their depot near Liverpool, they deliver out to 300 pubs. But the bulk of our business, we deliver direct to. And we simply want to increase the number of outlets we do business with, win more customers. That's a good business for us. But the second thing we want to do is we want to win a greater share of the customer. So quite often, we call to The Dog and Duck, we might have 20 share of the business. What LWC is calling and they might have 30. And Marston's Carlsberg is calling and they might have 30. We want to look and say, how can we win a greater share of existing customers? And quite often, we can do that by saying, sometimes we have the beer business, or we have the cider business, how can we enter wine, how can we enter spirits? Other bars, we have all the wine business, we ask ourselves a question, how can we enter beer, how can we enter cider? But then finally, we want to win greater share of the customer with our own brands and our agency brands. And if we do all of this, we fundamentally improve the margin of C&C, and we improve the revenue of C&C. Now that's very simple. And every day, I ask Paul, Andrea Pozzi, our MD for GB, how many customers did we win? How many customers do we increase share with? How many customers do we increase share with our brands? And thankfully, it's [indiscernible]. But thankfully, Andrea always has good news for me. So since the start of the year, we have increased our customer base by 8%. So we're winning more customers. An example of a couple of customers that we've won recently that I think is interesting, we won the Virgin Hotels chain, very small today. We've won all the business with Virgin Hotels. But like any Virgin brand, they always have massive ambition to grow quickly, and we expect that Virgin Hotels are going to grow quicker. But we've won the Virgin business. We've won all the wine and spirits to the BrewDog pubs. We never dealt with BrewDog before. Interestingly, we're a competitor of BrewDog in the beer market, particularly in Scotland, Drygate, Innis & Gunn, but still BrewDog came to us, and we now supply all the wine and all the spirits to the BrewDog pub in States. In terms of winning share, we used to have about 10% of the wine business in The Alchemist pub chain, one of the most successful pub chains in the Northwest of England. When we combined Bibendum and Matthew Clark together, we've just now recently won all of the wine business to The Alchemist, going from 10% share of wine to 100% share of wine within their business. Caledonian Heritable is a big pub company in Scotland. For years, we supplied a large part of the beer and cider to Caledonian Heritable. Just in the last couple of weeks, we've won the wine supply and the spirit supply to Caledonian Heritable, somewhere in the region of about 300 pubs and hospitality outlets in Scotland. So here is an example, again, of growing share with existing customers. And then in terms of our own brands, we've just recently with the Las Iguanas pub, our restaurant chain, we've won the exclusive cider business with Orchard Pig. So again, about 60 or 70 sites. And we have won with the Big Easy, which is a Texas-themed casual dining business. We've won the vodka business with Tito's, one of our agency brands. Loungers, which is one of the largest pub chains in the U.K., about 200 pubs. We've won distribution for Jubel and for Didsbury gin. So that's an example of just winning share of existing customers, but peppering it with our own brands where we have our highest margin. There are examples of us beginning to execute our strategy. We're not starting today. But we've really only started in earnest since we completed C&C GB. We've been doing it in Ireland for quite a while, but we've really only started in C&C GB in the last 4 or 5 months. But I shared those examples with you, not to say this is some kind of a powerpoint slide, but this is really what we're doing in the market. And Andrea convinces me that there are a lot more opportunities to go for. So as we talk about today, and this is my last slide, what we're going to share with you is 3 things: How are we going to continue to build our brand strength, how are we going to -- Lucy is going to talk you through it, how are we going to build our portfolio on the back of our core brands, Magners, Bulmers and Tennent and how are we going to premiumize that portfolio over the next number of years. She's going to show you how we made the choice to invest behind our portfolio. Not just in terms of hiring great people, but also putting our marketing pounds and our marketing euros behind the brands moving forward. She's going to show you the type of grip we have on the market. We understand through proof our in-house insight team just what fantastic insights we have. And she's going to share with you what are our plans to build our brands because ultimately strong brands are good for our profitability, but they also make us very sticky with customers. And the more we can strengthen our portfolio, the more sticky we become with our customers. We're then going to move on to Clara and she's going to talk in depth about how we're going to build our system further. How are we going to build the leanest, meanest, greenest distribution system in the U.K. and Ireland that's going to enable us to win more customers, to win more share of the customer and to win more share of the customer with our brands. And again, you're going to see there how we're going to deploy and employ technology to continue to drive the efficiency of the group moving forward. And then finally, Richard is going to talk to you about sustainability. And you're going to see that in our company, sustainability is really part of what we are. We've been doing it now for years, and we have lots to be proud of. We are a company with a conscience. But you'll see not just what we've done, which you'll see from Richard around the areas, reducing CO2, or sustainably supplying our products of being a tremendous corporate citizen working with society. And in terms of the way we work internally with our colleagues, we have an ambitious sustainability plan for C&C moving forward. And if we do that and when we do that, these 3 things, that's what's going to help C&C grow and continue to prosper in the U.K. and Irish markets moving forward. Now before I get to my 3 colleagues, I want to introduce Patty and Patty is going to take us through the financials of the business, which again is incredibly important, and then we'll move into these 3 pillars. Finally, what I will say is that we will do all of that with engaged colleagues, colleagues that love working for our company. And no one loves working more for our company than Mr. McMahon. He's been around a long time. You know him well. He is a passionate advocate for our company and for our people and post a little snazzy marketing video, we'll let Patty take us through the numbers. So thank you, and I'll talk to you a little bit later.

Very good. Yes, that was shorter than I remember in the hears actually, yes, yes. Well, look, it's great to walk on to a bit of an intro. Actually, I'm not used to that. And it's great to be presenting to you guys without having to worry if I'm on mute or not because I haven't been used to that either for a while. So I'm Patty McMahon, I'm the CFO. I'm going to talk about 3 things today. Firstly, I'm going to talk about FY '22 because although today is about our Capital Markets Day, it's also the day that we've announced results, and there's some really nice stats in there. So I'm going to talk about FY '22 at the beginning. I'm going to talk about recent trading then in the middle part, and we'll cover that and there are some really encouraging trends that we'll see in recent trading over the last couple of months. Finally, then I'm going to end with what you might expect from C&C in the medium term? Okay? I'll start with FY '22, though. And hopefully, what's pretty well flagged to numbers from our pre-close statement. We've got net revenue of EUR 1.4 billion. We've got 3.3% operating margins, delivering operating profit of just shy of EUR 48 million, and that's slightly above the upper end of the range that we gave in March at the pre-close statement. Clearly, that year has been driven by -- the first bullet point there on the top right-hand corner, more than double the amount of trading days in FY '22 compared to FY '21. If we look a little bit closer at the 3.3% operating margin percentage, that's built nicely during the year. You might recall, Q1 or H1 for us rather was that was 2.4%. H2 for us was 4.1%. So that progression as the business rebalanced a little bit and the on-trade came back, as to be expected, was building nicely. So we've got a nice little bit of momentum in there. The net debt number, just a little bit more than EUR 271 million, represents 3.4x net debt to EBITDA. I think as I look at this slide and try not to be traumatized by all the red text from David's time line chart, I reflect on a year that we reduced our cost base. I know there's cost pressures at the moment, and we'll be talking about those shortly, but we did take EUR 18 million of costs out of the business. They were concrete actions that we took over the last 12 months. So in that sense, we're a leaner operation because of FY '22 and as we look into FY '23. I also look at the debt number and think we'll no longer laden with an enormous amount of debt. We're a lean business, that's not going to get in our way. And I see a company that's continued to invest frankly, in the things that matter: people, our sustainability credentials and our brand throughout what has been a very, very difficult last couple of years. The summary, I think, from FY '22, is that when we were allowed to trade, we converted really, really well, and it was a solid trading performance. I might describe our cash flow generation is solid and maybe familiar as well, free cash flow conversion of 36%, our repayment of tax deferrals, which again, you guys might be familiar with over the last couple of years, we deferred some tax payments to HMRC and IRS revenue. And that weighs on a little bit. But starting at the left-hand side of this waterfall chart, we look at underlying working capital. And it's a relatively modest outflow of EUR 6 million. Within that, there's an investment of stock of EUR 44 million. And that's a bit higher than we intended it to be, frankly. It's higher because we were caught out a little bit with Christmas, the latent position of restrictions in the on-trade of Christmas, meant that we carried more stock than we had designed to into January and February. And with January and February being kind of quiet months for us in the on-trade, we ended our fiscal with more stock than we needed to. If I logically maybe assume that half of this investment in stock was unnecessary and not designed, and we add back maybe EUR 22 million, we get right back into our normal range for free cash flow conversion between EUR 65 million and EUR 75 million. Also within our underlying working capital position, we continue to collect cash really, really well, as we have done for the past couple of years in truth. We haven't been hit by any real significant bad debt. We've worked with customers around payment plans and such, but we haven't really been hit that hard. Today, we've announced and you might have picked it up in the prelim. We've announced that we've written back EUR 8 million of previously created bad debt provisions relating to COVID because we could no longer justify them. And I think that really underscores the quality of our book. This big tax deferral outflow. I've referenced it a second ago, is really also repaying those tax deferrals. We repaid EUR 51 million net. We've got EUR 23 million to go in this fiscal. And that's going to weigh a little bit, I suppose, on the free cash flow conversion, but then we'll be done, EUR 23 million left of this. The debtor securitization facility, which we've used in this business for a long time, obviously reinflated as trade came back, and that was a useful source of working capital for us. At year-end, this facility contributed EUR 84 million of cash to the business. Maybe the last point to call out here is just on CapEx, and we continue to invest in CapEx, as I said, just shy of EUR 15 million. I think what's noteworthy about that is half of that or almost half of that was in favor of ESG and sustainability initiatives, something you're going to hear a lot more from Richard later on. That free cash flow conversion and the inherent strength, I think, in our free cash flow characteristics feed into the balance sheet, a strong balance sheet is that our net debt position now lower than it was in 2019. As we look at that on a multiple basis, net debt to EBITDA, we see we're at 3.4, nicely on track for our less than 2x target for leverage. There was a time over the last couple of years where our debt numbers were coming into conversations with suppliers and credit insurers happily with this sort of a strength, I think it's now a competitive advantage compared to some of our fellow wholesalers and distributors in the U.K. We're seen as the good guys, I think, in terms of credit risk. So that's really important for us. A couple of things maybe to call out here. From the debt side, some of you will know, we raised money through our USPP placement in March 2020. That has a normalized -- normalized kind of average blended rate of 2.2%. And that's long money. So it has 8 to 10 years left to run on that. The quantum of that was EUR 145 million. So about 3/4 of our net borrowings in fact, if you exclude leases, 3/4 covered by that USPP, fixed low interest rate provides an effective hedge for us as we look forward. A couple of other points to note. Big one being admiral actually in our announcement today of the disposal of our minority interest in admiral, that's further going to strengthen our leverage position and provide optionality, all important as the Board considers capital returns for shareholders. And in time, when it's appropriate, reinstating a dividend, which we all believe is an important part of the story. Lastly, I would say, the strength of this balance sheet gives us I think license and an opportunity to look at incremental inorganic opportunities as they might arise as well. And that's something clearly we haven't had on our -- we haven't had the ability to look at in any real way over the last couple of years. If I move on now and we look at maybe a little bit closer at performance on P&L. I want to introduce our new segmental analysis, partly necessitated because of the 1 C&C initiatives and the combinations of the business units in GB, there's an accounting standard that says, but when you manage it all as 1 business unit, you have to report it as 1 business unit. But frankly, it was something we were leading towards doing anyway, partly from feedback from yourselves over the last a couple of years, particularly since the acquisition of Matthew Clark and Bibendum, how do we best look at the business and how do we best describe it. So going forward, we'll be reporting GB in Ireland and the secondary analysis then and secondary lens will be own brands and distribution. By own brands, we clearly mean anything we own or anything we have a long-term interest in. Distribution brands, our third-party brands, wholesale brands, private label, stuff that we don't necessarily have a long, long-term interest in. I appreciate that, that's going to require a bit of rework for models and Ewan Robertsons here, and he's going to take care of all of that. We've tried to pepper-in the appendix a few slides that translate the old language into the new one. And clearly, because this is the way I look at the business, and I think this is the way the business is going to be managed, I do hope it's useful for you guys going forward. So I'll jump straight into GB. And GB is clearly our largest business unit. It represents 65% of operating profit from that business unit. And there's a couple of anomalies here. Again, it won't be lost on anybody, but we're not exactly comparing 2 comparable years here. We're comparing a restricted year in the on-trade with a very restricted year in the on-trade. But that's not going to stop me from pointing out growth on the top line of 103% because I think anytime this growth of 100%, it's worth calling out, so I will. A couple of highlights. Our branded business, which clearly includes Tennent's and Magners. I think we covered maybe a little bit behind distribution. So you'll see the distribution year-on-year comps are more powerful. And that's really a function of the Matthew Clark, Bibendum business and their exposure to the on-trade. So there were more disadvantaged in FY '20. It makes them lapping the comps a little bit easier and more pronounced as an upswing. But if we look at brands, we see Tennent's volume plus 26% and net revenue plus EUR 54 million. I can clearly see pricing coming through that, but pricing isn't the entirety of the difference here between these 2 numbers. We do have -- we do have channel mix being the largest contributing factor to that. So as the on-trade comes back, it's higher value, higher margin, that drives a positive mix element. We see that to a lesser extent with Magners. Again, we do see a positive price/mix number, of course, but it's not as pronounced because Magners is predominantly an off-trade brand with about 3/4 of the volume going through the off-trade. Of note, when we look at the margins, you can see we had real momentum in the couple of years before COVID, and that gives us a lot of confidence that the formula works. Clearly, we've had 2 badly disrupted years, thankfully, at least positive numbers for FY '22. I think what I'd like to end this slide with is just restate what I think we've said before, the 4% operating margin target for distribution is something that we feel is our new target. And it's something that we feel pretty confident that we're going to get to. You might recall for the second half of this year, just before COVID hit, the Matthew Clark Bibendum business reached 3% operating margin for the first time in its history. So 4% is our new target, underpinned by a lot of cost reduction that we've done and a lot of that business combination cost-saving stuff obviously, allied then to just operational efficiencies and price increases get us to the 4%. If we look through the same lens at Ireland, Ireland hasn't suffered or hasn't experienced the same kind of structural change as our GB business has. So we haven't combined businesses necessarily. So from that point of view, hopefully, some of these numbers will be a little bit more familiar. We look at the branded line, Bulmers represents a big chunk of that. So 55% of net revenue for our brands is Bulmers and Bulmers represents about 3/4 of the profit. Again, you look at Bulmers volume plus 10% and plus 43% for net revenue, similar type characteristics and trends that we've experienced on Tennent's. You can definitely see the price increase sticking. But what's more than that is that channel rebalancing as the on-trade comes back. And I think we're not fully rebalanced yet. We'd expect a little bit more over the next little while. On the distribution line, ABI is in there, and I think that's worth calling out. That was a bit of a debate which one it goes into. But didn't want to give too much of the game away. So we put it into distribution. And I think the highlight on the distribution line in Ireland is Budweiser is up 45% in net revenue in the year. Again, the margins built here. But what I'd call out, and it's not particularly visible actually in these numbers because it was only implemented in January of this year was minimum unit pricing at the long last was brought into force in the Republic of Ireland. Still not in the North of Ireland yet, and that's tied up with the political process, but it did come in into the Republic, and we think that's going to be worth between EUR 3 million and EUR 4 million to us. When minimum unit pricing came into Scotland, it was worth about EUR 2.5 million, Ireland a little bit better positioned because of our brand portfolio and strength. I'm going to leave FY '22 there, if that's okay, and maybe move on to more recent trading. And talk about how to describe this actually because, again, we don't want to extrapolate too much from a couple of good months, but it's very, very encouraging. There's no 2 ways about it. And we've been really pleased, and I think take a lot of confidence from what we've seen over the last 2 months. I'm going to share with you a slide or a chart in a moment that focuses very much on the on-trade, partly familiar because we've used a version of this slide in the past. We've talked about direct deliveries, and we've talked about outlet numbers, specifically in the on-trade. And both of those as a percentage of FY '20, hovering between 80% and 85%. I don't think that's the story here. The real story is what's happening on the net revenue line. And although we have reached over 100% in the past, that's largely been as restrictions are easing, and people are buying a lot of stock in. So it's a bit of a stock build. Here, what we're seeing more recently isn't necessarily stock build because we're saying that our customers don't want to tie up a lot of capital in working capital in stock. That looks to be a sustained improvement on FY '20 net revenue position. And that sustained improvement is the highest we've seen since the pandemic began, and it's the most sustain. So easy to take a lot of comfort from that. On-trade net revenue plus 15% in the first 2 months. That's a biggie for us. That's a real biggie. Again, how did we do it? It's a lot of what David has already talked about. We're selling more to the customers that we do have. We've been a little bit more choiceful, I think, in what we're selling, a little bit maybe cleverer with revenue management than we might have been in the past. We've stopped doing a lot of water, or cheap soft drinks. We've deployed quite a few operational techniques to get to that. So again, a very encouraging number. And the one that I think is more relevant, frankly, than outlets for now. As we do look at operational stuff and again, you guys will be familiar with the version of this slide as well. OTIF in our Matthew Clark Bibendum business is a measure of on time and full. Does a customer get what they want when they ordered it. It's how we track customer service, among other things. And what you'll see over the last little while is improvement. So we're up at about 88% now. Normally, a good number for us is the high 90s. We're not quite there because of inbound supplier issues. And again, our suppliers are working hard with us. But because they don't own their own network because they use 3PL service providers to get the stock into us. That's a bit of a lag, and that's really the reason why we're not higher up on this chart. I think it will come. But this underlines just how difficult the marketplace and the operational side of the business continues to be. I think we're past peak pressure in terms of employment and drivers and warehouse operatives, but it's still a challenge. It was best represented, I think, with that line right there. I'll end this slide by again just saying 2 months in, net revenue at EUR 315 million at a total basis, so on and off-trade, that's plus 11 -- well, it's actually plus 11.5, so we'll call it 12. That's a really good performance. Again, I know you're all probably thinking, well, what's happening with the margin probably why are you talking so much about net revenue. The margin for those 2 months is slightly better than the margin for those same 2 months in FY '20, so pre-pandemic. Again, I wouldn't necessarily extrapolate too much out of that because although this is a great start, we're only 2 months into a 12-month year. But we take a lot of encouragement from this. The next slide is going to be about inflation. It's going to be about cost. And we've been getting a lot of questions from that. This morning, we got a bunch. Clearly, it's been the topic of a lot of conversation internally in our organization for the past several months. And before we went into a pre-close statement -- sorry, our close period around our year-end again, we could sense that people were trying to just get to grips with where our exposures really are around commodity pricing. I think the best way to explain this or one of the ways to explain it, is just with reference to our cost of sales line. So let's call that EUR 1.3 billion is our cost of sales line. Now 90% of that is finished goods third-party stock. So that's a case of Smirnoff, a keg of Guinness, a keg of Carlsberg, the stuff that we buy, and then we attach a wholesale margin, and we sell. Whatever happens in that 90% is really going to dictate the overall inflation that we experienced, I think, on that cost of sales line. Again, I don't necessarily want to get into it now about what that is and what we think it might be because that's a very sensitive negotiation clearly with our suppliers. We're going to try and minimize this. But whatever that is, will dictate the overall shape of this. What I want to do today is maybe focus on the manufacturing input costs. We're calling it 10%, sometimes it's as low as 8%, but for the purposes of this 10% and understand what's happening in there because it's that 10% that we're feeling cost pressures, I think, most acutely right now. That's what we spend running our sites, manufacturing our products in both Wellpark and Clonmel. You see our biggest spend here is on cans, aluminum mostly. You'll be aware of aluminum has increased quite substantially along with energy, along with glass, which is a lot of energy. Actually, all of those things have increased quite substantially over the last 12 months or so. Now the good news is that we had hedged particularly well over the last couple of years. And the inflation that we've experienced on this block of spend in FY '22, was probably about 8%. So EUR 7 million or EUR 8 million was the inflation that we experienced, so that's good news. Of course, as you lap some of those hedges, you realize just how good it was. And of course, also like everybody else, I think we're going to be lapping those numbers and coming off them. Again, good news is for the next 12 months or so, we're 100% locked in on our pricing, whether hedges are just agreed pricing with contracts. What it does mean though, is that we go from 8% to something north of 25%. And again, you can see how and why -- it's energy and it's aluminum. Again, I think the good news there and the positive, even though 25% plus is a big number -- the positive is our agreed pricing for FY '23, we estimate to be about EUR 15 million better than where the market is today. So again, we still have some protection. I think as I look at this and particularly cans and energy, it's hard not to think about the off-trade. And we've already invested into the off-trade [indiscernible] out of plastics. I think this aluminum piece for off-trade will weigh I think, on off-trade margins for a little while. I don't think we'll be able to recover it all in 1 year. The antidote for this is price increase. Whatever happens in this 90%, we just pass it through. As we always have in Matthew Clark and Bibendum. We're not in a 3% business, we can't absorb costs. So we're definitely passing pricing through for anything that comes in third-party brands. We will as well for everything else, try to recover as much an offset -- as much of these headwinds as we can through increased pricing -- the off-trade probably difficult to do that in 1 year. That's probably a multiyear journey, but you get a sense on the 10% that we've got, some of those very real pressures and some of the benefits that we've had and continue to have with hedged and agreed pricing. Price increases, we flagged them today in the prelim statement, I think they're just unavoidable. I can't imagine that this is in any way unique to C&C. How do we think about the medium term then. If I can maybe leave that behind. We're not in a position today to reinstate guidance. But that doesn't mean we can't sign post a few things. And the first one I would start with, it's not technically an order, but pricing power that protects us against inflation. We believe we have pricing power. We believe that's what we're seeing over the last few months. You can see it coming through on the net revenue side, our ability to price our offer and our brands clearly is sticky. You can see it in the P&L. And I think that provides us quite a bit of protection against rising costs generally. So that's a positive, that's a big positive, I think, for us. Our disposal of Admiral today I want to say completes around of noncore divestments that started with temporary water cooler division a couple of years ago in Ireland. We're out of North America. Today, we're out of Admiral and that allows us very much to stick to the knitting, I think. No distractions. The Admiral deal, I should clarify, actually, because I don't think we've talked about it yet. The Admiral deal today was done for EUR 66 million, applied multiple of 10.9. So it's a really good deal for us. Beyond those numbers, which again, you guys would have picked up on, there's a commercial deal that goes with it. So Admiral and with the addition of the Hawthorn Estates that they bought, are a big, big player now in the U.K., and they're going to be a customer of C&C, a special customer of C&C. So we're getting value even on the exit through a commercial deal. But that's where we are today. And I think that that's a position of strength. Our balance sheet, we've talked about it, we're well on track for less than 2x leverage numbers. That feels like as good a starting point or as good a position as we can possibly be in. Yes, I think David has already covered a lot of this. And you're going to hear a lot more about it later on. But looking to the future, we've got ambition. David is an ambitious guy, I'm ambitious, all of C&C believe in what we're doing. And we've got growth targets. So on-trade growth, we want to grow our brands. How we're going to do that? Well, Lucy is going to tell us later on. But what I know is we're going to invest behind our brands. We probably under-invested in our brands historically over the years, but we're going to invest in our brands and we're going on invest on growth. Today, again, confirming the 4% operational -- 4% operating margin target for Matthew Clark. Again, I can say it, do you guys believe it? Well, let me try and demonstrate. We did, just pre-COVID, we hit north of 3% for Matthew Clark and Bibendum. Matthew Clark and Bibendum is 90% of that distribution target. It's 90% of the business there. We were already north of 3 under normalized conditions. We've taken a lot of cost out of the business. More than half of that EUR 18 million that we talked about came out of that line. So if we do nothing else only kind of recover where we were, take incremental price increase, cost gets us a vast majority of the way to that 4%. So we're feeling pretty good about that 4%. Off-trade, again, so some great on-trade gains over the last -- sorry, off-trade gains over the last couple of years. They are hard fought gains for some of our big brands. We're not intent on giving those back. So although, we have some pricing pressures, and it's going to weigh on margin a little bit, not least of all the out of plastics investment that we commissioned over the past few years, we are going to defend that share, that margin piece in the off-rate is going to be supported by minimum pricing as it comes into Ireland, and it begins to be felt. Again, that 3 million to 4 million [quid] a year contribution will support those margins. Of course, then what are we here for? Well, we're here for maximizing shareholder value. And again, we look forward to getting return on capital employed back up to FY '20 levels, it's 11.9. Again, that will be our immediate target. Another target that's very close to our hearts. And I think David and I, in particular, is reducing the carbon emissions, and we're incentivized on that. We're incentivized on reducing carbon emissions. You're going to hear a lot more. Okay. So that feels like building back better, starting from a good place, growth ambition, and we know what we're here for. My last slide then is around capital allocation. And some of you probably have seen this slide or a version of this slide a few times in the past. I think it's useful now to talk about it again, as the strength reemerges into our balance sheet. Clearly, we've got a broader range of options available to us, both strategic and financial. I think it's worth maybe reminding ourselves of some of the key attributes of this group, really well-invested manufacturing assets, well-invested brands, by and large, with I think a little bit more to do on Magners, but by and large, well-invested assets. And we've got a free cash flow conversion range of 65% to 75%. So there are great characteristics of this business. As we think about a year's capital requirement, I think about CapEx, and I think about our modest levels of CapEx somewhere between EUR 15 million and EUR 18 million is typically where we live. That's modest in the overall scheme of things. And it's broadly in line with our pre-leases depreciation charge. Again, that EUR 15 million, EUR 16 million, EUR 17 million roughly split half maintenance CapEx and half growth or sustainability CapEx. We've invested considerably behind sustainability, and we will continue to do so. We're also going to pivot more towards technology, and that comes out in Clara's section a little bit later on; technology as an enabler for more efficient transactions, I think, is something definitely worthy of continued investment. So the CapEx pace is relatively modest. Then we think about brand investment, and we think about, over the last couple of years, we're reinvesting 5%, 6% of net revenue for our brands, that's low, 5% or 6% is just too low, we want to get that up to 10%. Now how quickly we get up to 10% really depends on, I think, the market conditions. It depends on how the P&L is looking. But the ambition to get up to 10% is very clear and that underpins our growth strategy around brands. 10% doesn't get us back to probably industry, where the industry is. It's probably a 12% or 13%, isn't it? But again, we don't feel like we need to overspend or outstand anybody else because we have the distribution assets and because we have a loan book. That brings me on to the loan book as another source of maybe capital deployment as we go. Now I'm a bit sensitive to investing money in loan books because of the downside risk, it's all about security as far as I'm concerned. We've got about EUR 50 million of gross assets tied up -- our gross about EUR 15 million of cash tied up in our loan book in north of Ireland. And in Scotland, we have an excellent track record around security and not incurring bad debt. Again, today, we've written back EUR 5.5 million of provisions in favor of our loan book. Again, where an opportunity exists, we will invest into loans because it's actually the highest rate of return tool that we've got in our toolbox. I would deem loans and brand investment as high-quality and low-risk investment from our point of view. Returning capital to shareholders, I think we've touched on it earlier on, but it's always been part of the C&C story. It's been an integral part of the C&C story. I think it will again be a part of the C&C story. We're not in a position to announce anything today, of course. But as a board, very mindful of its importance to our shareholders. Lastly, this is my last slide. Again, looking at inorganic opportunities where it makes sense, I think, is on the cards for us in terms of our capital allocation hierarchy. But we'll only do it if it does 2 things, maybe 3 things. One, it has to make sense financially, of course, it has to meet our hurdle rates. But then it either has to improve our brand position or strengthen our system. If it doesn't do either of those things in our core markets, or, frankly, it doesn't really pass the hurdle tests. So that's our capital allocation framework. Hopefully, that's pretty clear. And I don't know what's going to happen when I press this button, but Lucy is coming up, and there might be a video. So thank you very much.

I also thought it's going longer. Good afternoon, everybody. I'm Lucy Henderson, GB Marketing Director at C&C. I joined the business about 4 months ago, just to give you a little bit of background, I joined in January. And previously, I've spent almost 20 years in the industry, building brands, building big brands with competition. I've done about 7 or 8 years in the U.K. and the last 5 years in Amsterdam in a global role and an international role before that. So, I'm coming with lots of experience and vision on what to do with the brand portfolio for C&C going forward. So today, let me see if this works, yes. Today, I want to start with our core portfolio. And I want to talk to you about actually how the core portfolio fits into our future growth strategy. So Bulmers, Tennent's and Magners are huge brands. They are brands with massive of prominence, real stickiness with local consumers. And actually, they're the absolute bedrock and foundation for us to grow and have a portfolio game going forward. Without these, we can't move forward with the portfolio strategy. The cash injection that we'll get from these brands to actually follow consumer trends and actually fulfill our ambitions comes from these brands. So it's super important for us to make sure that we nurture them going forward and that we don't take our eye off the ball of these 3 brands. Our growth strategy, and I think we've talked about those 3 brands. If I'm really honest, when I come in, I think we've been quite a mono-brand business. We've got these huge big core brands, and they are playing against various trends. That's fine. But actually, our core -- to move forward in the future, it's all about portfolio and David mentioned it already, but actually to grow, we need to go further than where we are. And actually, we need to make sure that we're following consumer trends to make sure that we can win in the future. Now we've got loads of consumer trends, but we've got a brilliant insight engine within our business called PROOF. You will hear about this throughout my presentation. You'll hear in Clara's. And it's a really exciting business that we've got, an independent voice within our business that gives us insight into what's happening in our industry from a very granular level. So what, in a nutshell, PROOF for us takes all of our sell-out data across all of our businesses, takes it all into a pool, takes all the external data pools and then tells us what's happening. It's almost on the minute it can tell us what trends are emerging. And actually, it's a really exciting proposition for us, and it's extremely vital for us to win in the market going forward. So when we're pulling trends together, the 5 big ones I want to talk about today that we concentrate already on with our core portfolio, are these 5. And then we have an access to make sure they were on the trends with PROOF going forward. So the first one I want to talk about is age of wellness, this is not new to anybody. Health and well-being, I think, has accelerated as a consumer trend over the last 2 or 3 years and people being locked down in COVID. And actually, for me, it was really exciting to join and see that actually on our core brands, we're already moving forward. So, we have Bulmers Light, we have Bulmers 00, we have Tennent's 0.0, we have Tennent's Light. We're looking at bringing brands like those of Magners, and actually we're already there. And it's actually about how do we then with our portfolio for the future, really, really intensify our position against that trend. Second one for me is local love. I've just said that we have some brilliant brands, local brands that have real stickiness with consumers. But we also have Drygate, we have Innis & Gunn, and we will continue to look at really exciting local brands that can fit into our portfolio to drive growth forward. The third one is conscious convenience and I will not steal Richard's thunder, but it's very much from me about the environmental impact. And actually, the consumers absolute demand now for what our impact as a business is on our environment. And I'm pleased to say we've taken our plastic out of our own brands. We're reducing cardboard and we're really looking seriously at our CO2 emissions and various other pieces. Really, really important for us to drive our environmental impact and ESG is a big part of this strategy. The fourth thing here is [indiscernible] brands. So consumers are absolutely demanding that we're authentic, that we're actually talking and we walk the walk, we talk the talk. And I think we can see through the conscious convenience and our environmental impact, et cetera, that we do that. But we've been doing this for a very long time. So we do sustainability. We've got the Bs with Bulmers. We use our local products in Scotland to try to produce Tennent's. So it's really about putting our money where our mouth is and actually saying, we really are authentic brands. And the last one on here I want to talk about is experiencing all, and I think we all know this. Being locked down for 2 years was pretty depressing. And actually, I think what we're seeing big signs of it's coming out of that, people are really wanting to enjoy themselves. Yes, we've got the recession. Yes, we've got inflation. People are worried about the money in their pockets. But actually, when they are going out, they really do want to experience something different. And that for us is really exciting. That's about having a portfolio that plays to the consumers and into those occasions about providing surprise and delight with consumers at the point of consumption. At the point of purchase, it's about Bulmers. We're doing Secret Orchard. We're do exciting events with that brand this year. It's about Tito's, we're doing lots and lots of different things with this gin -- this brand. [indiscernible] lots of flavors, lots of excitement, bringing new inspiration to the category. So to really win with consumers, we need to focus on key trends, and that's the one point I want to see on this slide. When we talked about the mono portfolio and how we're going to expand it, we have made a really, really conscious choice to play a portfolio game. And how we're going to do it, and that's the only way we're going to do is to step change our brand strength is by actually playing that portfolio games. And we've got a really simple formula to drive exponential growth. And the first one starts with focus. So we need to make choices about things we will do and things we won't do. Brands that we will back and brands that we won't back. And actually, we do that based on the insight that we drive from PROOF, and all of the intel we have internally and about really being focused on the consumer trends that matter for future growth. So it's not just about now, but it's also about focusing on what's going to be relevant in 2, 3 years' time. The second one for me is about investment. And we've already touched on this already, and this is about absolutely increasing our investment on our brands, our owned brand portfolio. Patty has already talked about 5%, we are under investing compared with the competitors. They have big budgets, they're investing behind their big brands. And no, we won't do that all in 1 year. But in the short to medium term, it's about delivering about 10% of our net sales revenue and investing that back into brands. The third one is about distribution. We have an incredible distribution arm. We have a really big advantage versus some of the competition about how to drive our brands into the on-trade. We'll focus on the on-trade because that's how you build brands. And actually, we've got the advantage there. We build brands, we can use our loan book in Scotland. We can use our loan book in Northern Ireland to build the portfolio, to get engagement and then to see how we're going to invest and whether we want to take those brands nationally. But it's not just about the on-trade. It's also about the off-trade. And actually, for me, we can't forget that's a huge part of our business. It's about building brands in the on-trade, getting grip. And then once we get those brands up to the correct size, we've got consumer pool, that's the conversations we have with the big retailers. That's about when we go big. That's about when we really have those big, strong brands that will deliver growth and a portfolio game we can play. The fourth one is innovation. And I'm going to be really transparent and say, I don't think we're at the forefront of innovation compared with the competitive set. I think we've done some great stuff. And I think we've done some innovations that have failed and had a product life cycle much, much shorter than we'd ever envisage. And actually, that's okay. I think what we need to do is really look forward now and say, what is our innovation strategy. We need innovation, we need innovation to recruit. We need innovation to drive reappraisal with consumers that have fallen out of love with our brands. And actually, for me, innovation is twofold. We will innovate on our core brands. You can see I've talked about it already about the health trend and how we've done that. We will do that. We will be choiceful on our other brands how we innovate. But the USP that we do have is our agency and equity model, which I'll come on to later, about how we can utilize the different brands out there and pepper our portfolio with new brands in a quick and nimble way. And I'll come back to that towards the end. Now, I believe if we follow these 4 steps. That's how we're going to grow the strong future-proof portfolio. So it's about simplicity, it's about choices. It's about making sure we invest correctly, it's about being really targeted with our distribution, and it's about innovation and being choiceful on innovation and doing agile to beat the competition. Now, I've talked about investments. And I just want to give a little bit more depth on that. So we talked about 5% to 10%, but that's not 10% across every brand. And I think the one thing that we've been working on is what is the framework for investment. Actually, what is the framework work that allows us to make choices and invest and prioritize brands that we really see fit that are going to grow versus ones that we can play tactically. And I've just given you a selection of our brands here. And I'm just going to take you through the framework that we've come and are going to look at implementing for the future. So we have a number of our brands that we see as high potential. And we will overinvest before growth on these brands in the region of 20% to 35% NSV. Now brands at the top there are brands like Orchard Pig, brands like Menabrea, brands like San Miguel. If you've been in a supermarket lately, you will have seen [Madri], this big red brand that's out there playing in that Spanish segment. San Miguel has potential to play there, too. It's actually a really growing big growing category. People are playing there. We see these brands as high potential. Then we have seedlings. These are unproven to us yet, but are potentially really, really exciting. So for these brands here, they are a regional play. They are doing well in their areas. They're increasing growth. They're bringing profit pools, but what we haven't decided yet is -- are they the big bets for us? Are we going to take them right across the U.K. Are they big enough for us to put the investment behind now? We already have these ones, and we've chosen that we'll drive our high potential brands, and you don't drive brands for 1 year. You make sure that you invest year after year to really give them a goal. And we've chosen some of those brands already. The seedlings are the exciting ones of the future. The ones that we can reinvest in and put more investment behind when we see the growth, and we really see the potential. When we take our proof business and ask them where could it go? Where are the consumers that are drinking heavily? What type of outlet to the drink unit? Is the opportunity and the size of the price big enough? And actually, when we decide that, that's when it moves into high potential, and we start investing behind it. The next one here is strategic brands, Tennent's, Bulmers, Budweiser, Magners. All of these brands, huge big brands actually that we need to maintain and we need to make sure that they still grow or they still have a big chunk of growth in them. And if I'm really honest, I think Magners is one of them, a sleeping giant that we've left and I'll talk about on a full slide on Magners, a big sleeping giant that has potential to growth if we put the right investment behind it and the right focused plan. And then finally, on this slide, is tactical. We have loads of these brands. So we have a lot of brands in our portfolio. I'm not going to say hundreds, but loads. And actually, without a framework like this, it really is fire, fire, fire. We're going to get -- we can get it in here, we can get it in there. And actually, that's a distraction. It's a distraction for our sales force to be going to an outlet saying. "Yes, we'll put Caledonia Best in there when we actually want a Heverlee. So it's very much about specifically saying these are your goals. We have tactical plays, but actually, they're at the bottom of the priority list. Therefore, there's regional plays. Addlestones, a fantastic brand, but it's very regional. Do I think it's got the potential to go across the whole of the U.K., not just now. So it will be a tactical play. It's about perfecting the point of consumption, perfecting the point of purchase and making sure that person has a great experience with that brand, but it's not a brand that we're going to invest behind that we see going nationwide. So I talked about the investment. Once we've got the investment framework in place, and we know what we're going to spend behind, then it's actually how do we get those units and actually those distribution points to make sure that we can actually drive the growth in the brands. Now PROOF, and I've mentioned it already, have segmented all of the consumers, all of us in this room, they put us in a box. Sorry, but they put us a box and they put a name against us. So they basically segmented, all of the people and consumers there are and said, you are this, this and this. And I know who you are, where you drink, how often you go out. We have all that information. Then we have a segmentation. We've got all the outlets in the U.K., and we've segmented them correctly. So for us, when I say to the head of PROOF, I want to take heavily national. How do I do it? They say, okay, this is your consumer. These are the targets. This is where we're going. This is what you're going, and this is the size of the price. And actually, this is one of our USPs is the fast, nimble way we can do this because the amount of data we already have. And it's internal data. Many of our competitors are having to look at external for that data. But we have that intel internally so we can move fast. So I've talked about the formula about how we're going to grow and how we're going to drive brand strength. But we do have 3 pillars that we're going to focus on. And the first pillar is on winning in cider, which I'm going to take you through and I'll take you through the other 2 just to give a snapshot of what the opportunity on these pillars are. Cider is the absolute core of our business. And actually, when you look at this slide, it's 7 million hectares across Ireland and GB. And the good news is that we have 13%. So we only have 13% of this category. So therefore, the headroom for growth is enormous. And cider, I think what I would say is we've under-invested in this category in GB, we win in Ireland. So in Ireland, we have over 50% of the cider market. We are the #1. So the biggest opportunity for us in cider is in GB, and that's in both the on and the off-trade. But it is a job for us to do. So we have a great portfolio, but we have under-invested in it, and we have let the competition take strides ahead of us while we're sleeping. Now that's the old. The new is we have a plan. And for me, it's about actually how do we, first of all, maintain Bulmers. Two, what are we going to do with Magners? And three, what are we going to do with the portfolio? Now I want to take you into the story of Bulmers. So Bulmers, we are now back. We're growing. It is the number 1. And we do know how to win in cider. And we do also know how to turn around brands. So for me, I want to take you through a little bit on what we been doing on Bulmers. I'll just make that jump like that. What you'll see and this graph meant to represent is that we are growing Bulmers, and we have been doing on a 24-month and a recent basis. And for me, it's because of a controlled and focused plan that we are winning on Bulmers. We saw that we weren't -- the category was slowing. And what we've done is really focus on driving relevancy of Bulmers with the Irish consumer. We brought in a new campaign. We've got a new awareness. We've been putting money behind it. We've been investing. We've been focusing on new trends we brought at Bulmers Light, Bulmers 00. We've brought out flavors. We've been absolutely leveraging on the categories that we know we can recruit new consumers and get reappraisal from our current consumers. We also have brilliant sustainable credentials on Bulmers. Bs are at the heart of this brand, and I'm not going to -- it's going to come in to Richard section later on. But the one thing we did is we don't talk about things that matter to consumers. So sustainability really matters to consumers and actually what we started to do and actually what consumers are demanding is they are demanding authenticity. They're demanding that brands have purpose and they're demanding that we've got respect for people and planet, and we're just highlighting what we've always done. So we're really showcasing now that we are actually a brand with sustainable credentials. We're a brand that can meet their health and well-being trends. And we're a brand that's relevant, a brand that's got a lovely awareness campaign and that we're pinpointing our consumer with relevant information. And the last point in here is with Bulmers, we're committed to investing in this brand year-on-year, absolutely committed to making this brand grow. And that's the biggest one for me is absolutely we've underinvested in the past. And now with a secure plan and an investment plan, we're seeing growth back on this brand. So let's talk about Magners. We talked about Bulmers. We know how to change brands and we know how to put them back into growth. Can we do on Magners? I say, yes. So Magners in the U.K. is a power brand. 86% of people are aware of this brand. It's the #1 preferred brand and it's the #1 brand for quality in GB. So, it has the credentials to stay and remain as a brilliant power brand in this business. However, we've underinvested in it and where we have invested haven't been in relevant properties for the right consumer. And we are absolutely committed to investing behind it going forward. And we are investing 40% of the GB marketing budget behind this brand this year, and we're committed to keep investing to drive growth back to it in years to come. The third piece on here is we need to prioritize it in C&C. So many of you know we have a relationship with BBG on cider. And actually, we've left them, not left them totally, but we've let them control where we actually put the brand. And actually, with the acquisition of Matthew Clark, we have distribution angle to make our sales teams target the distribution outlooks for going in. So we have an almost extra layer now to really drive focus on this brand within our business. Innovation. We haven't innovated properly or maybe more successfully on this brand and for many years. We have been a second -- we have always come out as we need to do this because we see this innovation already in the market. What we will commit to on Magners is definitely following the trends. So one is we will look at Magners Light as a proposition for next year. We will also look at flavored. So in GB, flavored is 1/3 of the market of cider. And actually, as a company, we play in it with Magners but not in a huge way. And so we will look at actually what are the flavor propositions that we can do on this brand going forward. And we're committed to innovating on it because innovation will bring reappraisal from the brands we've got -- sorry, from the consumers that are already drinking it, but also we need to innovate to recruit. So, we absolutely need to bring new consumers into this brand. Magners exploded the cider category in 2000s, it brought this ritual over ice that nobody knew about. Everyone thought, I just thought I could have a dusty pint that was at the end of the pub and see a pint of cider is it. But instead, you suddenly had what is this over ice. So we know the brand has got innovation at its heart, we need to bring that back. So we need to drive that reappraisal story with the people that drank it. And we need to then also look at how do we bring young people into it? Is it cider over ice? They don't know that ritual. I know that ritual, that's because I'm this age. But actually, we've not spoken about the ritual and over ice for many years. So we need to decide whether that's the right thing or whether we've got the right pack format for this brand. So we've got a lot of work to do, but it's actually about really being focused on how to bring this brand back. And the last one here is about channel distribution, and that's actually about the off-trade. So we've talked about the fact that our brand is huge in the off-trade, but actually, we're not available on all the pack size as we'd like to be. So we want to make sure that we are bringing in smaller pack sizes to drive consumer occasions. And in the on-trade, it's about making sure that we are in the right channels with the right pack for the right consumer, and PROOF is our intel that will help us do that. But we would -- just to finish on ciders, we will not win in cider alone. So Magners is not going to win by itself, and it's all about a portfolio play to challenge the competition. Magners over ice proposition. Orchard Pig, a premium draft proposition and Addlestones and Chaplin & Cork's. Other products that are playing into some of the trends in cider: Addlestones, hazy, regional, Chaplin & Cork's, super premium. So we have a portfolio play and we will do this and tap into the category trends. The other piece around this is we have a locker of other products that we're not showing here that we will look at to fill any white spaces that we feel that are absolutely huge potential and opportunities in cider for our business. So the second pillar I want to talk about is premium beer. And how are we going to grow in premium beer, another huge opportunity. So premium beer is a part of the LED category, and it's almost 15 million hectares across Ireland and GB. And that's double what I just said the cider category as a total level. So it's huge. And it's also been growing for over 2 decades, and we have 4%. A huge, huge segment, and we have 4%. And we have a great portfolio of small brands that are in growth. You saw some of them that we represented earlier on. They're all in growth. And actually, all we have to do is dial like this, use our loan book correctly to drive the portfolio, put the money behind the brand, invest a little bit at a time, and that number will grow. And that's a really small base. So we have a huge opportunity to grow and grow fast. Now what I will say is we are also good at growing brands. And we're already doing this with Menabrea. I just really wanted to give you an idea of how we take growing brands in Scotland. So Menabrea is my example here. It's had good growth. We recognized that it was doing really well in Scotland. We asked the question, is this just because of our loan book? Or is it because really consumers are buying into this brand? And the answer to that is the consumers are buying into brand. We then ask PROOF very quickly to say what on earth is happening. So we've got a really good proposition on Menabrea. It's really developing fast in Scotland. What's the opportunity? What's that size of that opportunity in England and Wales? And nimbly PROOF went off, looked very quickly because we have all the segmentation done and said, big opportunity. And this is what it dropped out. Big opportunity right across the U.K. And we said, well, that's great. But actually, that doesn't really help us right at the moment. You told us what the size of the opportunity is. We can't go after everything. So then you can hone into different areas. And what we said was, okay, great. I can see exactly the best outlets with the highest rate of sale that we can actually go for, and that's what -- and that's we're identifying those outlets. We identified 40,000 outlets for premium Italian beer and we know exactly where they are. We then identified the top ones, the top 500 to build premium and build the demand for us. And we've sent out our sales team, our hunters, to go after these accounts. So it's very much about, do this, here's the target list, we've got the information. You need to go and do. And we've had some really great wins. So some of these you will recognize. I hope you recognize most of them. We are winning lots and lots of customers in Menabrea, and we're winning in the top outlets. So we've had 30% of additional customers versus 2019 and we're growing at 437%. So Menabrea is a great example of us being able to drive premium brands. So I want to give you confidence that, that 4%, it will definitely bring growth over the next few years. And I'm just going to talk very briefly on the big strides forward in premium beer of the portfolio. So yes, we've got Menabrea, but this is about how do we make sure that we've got a portfolio that stretches across consumer occasions at different pubs and make sure that we got a diverse portfolio that will capture occasion. Heverlee, great brand of ours, concentrated in Scotland and Northern Ireland just now, fastest growing brand in Scotland, one of the fastest growing brands for us in Northern Ireland and a European beer, fantastic brand targeting quite a young consumer. So Menabrea is slightly older. We've got heavily targeting a younger consumer and a brand that we are deciding sitting as a seedling what we will do next year, laying the groundwork in Scotland and Northern Ireland and actually looking to develop that and take that elsewhere next year. Innis & Gunn, now this is an equity brand that we've got, we've got a stake in, an absolutely fantastic craft lager and a craft proposition, that we've got a relationship with and you'll hear more from Dougal the founder later. On -- sorry, a craft brand that we are developing and that we are growing with Innis & Gunn was in Scotland. They had great distribution there. They didn't know how to grow it in England and Wales. So it came to us, and we've got a partnership with them. We use our distribution arm to drive distribution for them in England and Wales, and we have a net this year. So we get investment and growth out of that. Jubel, our third brand, and this is a really exciting brand. So it's a small brand at the moment, growing great guns, also targeted at Generation Z. It's a brand cut with -- beer brand cut with fruit that we are working with them. They don't have the distribution arm. So for them, it's an industry brand, that's very, very true of many entrepreneurs. So what happens is they got a fantastic brand, its absolutely brilliant, can't get distribution. So they come to us and we got an equity relationship with them as well to drive that brand. And we have PROOF targeting great sites for us to go into, and we see this brand as a brand that has got potential to drive our portfolio forward. And the final pillar for me is about attracting and developing agency brands. And why is this important for our business. Now for me, its the USP of our business. So, its all very well having a beer portfolio, its all very well having a cider portfolio, but I don't know any other business that can be as quick and nimble adjusting its portfolio to drive potential growth. So for the brand owner, what is the advantage of an agency or equity model. First of all, we got the distribution arm. So we can bring them access to the markets with marginal investment. Secondly, we are the biggest distribution arm. So if we chose to work with them, they know they will get distribution. We also know that we can put it in exact outlets that will drive rate of sales and that they will deliver growth on their brand. And we have partnered with intimate knowledge of local territories but also customers, so often the problem is they don't know the customer, they don't know how to get into that customer. And actually with our business and people within it, we have that as an advantage too. For C&C, its about enhanced revenues and better portfolio and mix, and more importantly as I said its about actually the agile innovation of her brand portfolio. How do we really change and adjust our portfolio to the consumer trends that are happening and actually get ahead of the trends, ahead of our competition. And that's one of the biggest things for me and the biggest changes in my head is about, we can act fast and we can act nimble and we can really drive a competitive advantage. And the third one on here is the one-stop drop, it's been mentioned already today, but it will be mentioned again by Clara, the proposition to customers. So for me, the better portfolio we have, the easier is to convince customers that they should be buying just our portfolio and the composite portfolio on that. It then drives against our ESG agenda, about delivery, 1 truck into 1 outlet, into 1 place and actually, for us, it's a win that's driving against our ESG principles, but it's also an absolute win for customers in the sense they get 1 drop, they get a brilliant portfolio and a brilliant -- it also drives against their ESG credentials. That's the piece I want to talk about there. I'm going to now put a video on and introduce Dougal Sharp, the founder of Innis & Gunn, who's going to tell you how important -- and why it's so important the relationship with C&C.

So, we've got a very long history with C&C. It started back in 2010. And when we were looking for additional capacity for brewing and packing, and we had a conversation with the team at the Wellpark Brewery in Glasgow, and that led to the foundation of this long and very prosperous relationship between our 2 businesses. We're still brewed and packaged at the Wellpark Brewery in Glasgow. Of course, it's our people. We create the recipes, it's our materials and our craft brewing skills that bring the product idea to the Wellpark team and then their skilled team there create the beers for us. Of course, last year, in 2021, we announced a much deeper partnership with C&C, very much founded upon our desire to roll Innis & Gunn lager out in England. And with the strong foundations that we have between our 2 businesses, we felt that C&C would make a very strong partner with which to work. In order for us to successfully roll lager out in England, we knew from the outset that we would need to find a partner with similar values to our own who could help us to drive distribution in the fiercely competitive English on-trade. And of course, we didn't need to look too far from home. We already had a relationship with C&C, and we knew that their businesses in the U.K. were together the largest route-to-market infrastructure in the U.K. So it was an exciting opportunity for us. And after a period of negotiation and discovery, it worked out. We were able to construct a deal that would work for both parties. And I'm very glad to say that the original foundations of manufacturing have now been strengthened with this very exciting opportunity to work together, we were always very clear on our strategy for growth. Innis & Gunn lager, it's principally an on-trade brand, and that's why we grew the brand in Scotland. And so of course, when we were looking at how we would do it in England, we knew that we needed a partner to work with. And clearly, C&C is the biggest route-to-market partner in the U.K., it was clear to me that there was a great opportunity to partner and work with these guys to drive our growth in England. And it's clear that the work that's been going on over the last 12 months to focus the C&C business in on owned brands and partner brands in the on-trade and really getting behind lager is the right strategy for us to join. Innis & Gunn is on a mission to build the U.K.'s first national craft lager brand. And it's all about, for me now laying the right foundations and started to see that momentum build. And you can definitely see that out in trade now with an enormous amount of work from our team at Innis & Gunn and the team at C&C, and I think that's a really exciting place to be.

Great. So I want to leave you on 3 points about brand strength and our growth strategy. It's all about portfolio. So we're moving away from mono brand, and it's about making sure that we have a focused portfolio for now and in the future. It's about investing behind the right brands for the right growth, so -- and it's about investing not mono, but actually the right amount of money behind the brands and being really choiceful and focused on what really will drive growth. And then third one is about using our distribution arm. We have a competitive advantage in distribution. And actually, that's for our portfolio, but for every one of the agency and equity partners that we decide to partner up with. So on that note, I think I'm now giving over to a break and toilet stop, and I think we're coming back in 20 minutes. So thank you. [Break]

Hi, everyone. Welcome back from the break. I'm Clara Shand. I'm the Commercial Director for GB at C&C. I have worked in the business for nearly 9 years in various different roles. And under the commercial remit sets procurement for resale, around EUR 1.3 billion of purchases, the e-commerce platform and our business-to-business trade marketing. For the next 30 minutes, I'm going to take you through our system. I'm going to take you through the strengths and how we're going to invest for the future through technology, our people, how we're going to use our data and insight to really strive for the performance and the growth ambition, and how we're going to have the relentless pursuits for efficiency and for continuous improvement and how that will free up the latent capacity in our network that will enable us and facilitate the growth through our brands, our agencies, our customers and taking further share of the bar and the store. So where are we today? So that we manufacture. We're a vertically integrated business, and we start with manufacturing, and we manufacture our brands with the highest ingredients and local ingredients and quality in our Wellpark and Clonmel sales, both which are AA-rated, BRC standard. And the agility and flexibility of those manufacturing sites make us a destination as you just heard from [ Diageo ]. We procure. So as I mentioned that we procure from an in-house team, EUR 1.3 billion of third-party products that we resale out into our on and off-trade channels. Our economies of scale from the collective group. Our credit is a business that comes from our healthy balance sheet and our growth ambitions make us top 3 priority for our suppliers. We're #1 in the on-trades in terms of our scale of long alcoholic drink and soft drink purchases, and we're in the top 10 across the industry. We market. So you've heard from Lucy how we market our brands direct-to-consumer, but we also market business-to-business. Our share of voice is 3x greater than our next competitor. We use the insight for improved to target communications to those consumers through the median of their choice. And we sell. So we sell through a nationwide sales team of 320 people. They are hunters, and we'll come on to that later and how we're using technology to facilitate that, but absolute focus on where you're going to put our brands into which outlets for the right price at the right time. And we do all of that through our distribution network. The U.K. and Ireland's strongest distribution network with 29 depots, 1 RDC through 400 trucks, we can get to every single geography within the U.K. and Ireland. We can deal with complexity like no other. It's fully owned, and it enables us to drive single bottles, packs, with primary secondary into the on-trade, into the off-trade. We can do backhaul, we can do CGAs, the complexity that we can manage is unrivaled at the scale and the reach that we have. But what does it mean? This is all about fulfilling customer demand and customer needs and PROOF provide a service to us where they go out to our customer base through the segmentation across the on and the off trade and they ask them what is important to you. What are your priorities? We need to get as close to our customers as possible to unlock the opportunities and unlock our growth. And coming through the pandemic, there's been changes in those priorities. And from the most recent survey that's also supported from the CGA business leaders survey of 2022. Price is number one. Now I've talked to you about our procurement scale and economies of scale, and we'll come on to a little bit more about that, but actually pricing. We got it. Reliable delivery, no pre-pandemic. If you talk to customers. I think it's fair to say, service and delivery was taken for granted. There was enough people working in venues. There was enough people working in retail stores that they could deal with an additional top-up delivery, different routes to market, potentially a bit of a couple of more invoices. They could deal with the complexity and supply chains had capacity. And as David mentioned earlier, it doesn't exist anymore. The labor markets changed. On-trade and off-trade stores are struggling to recruit the staff to be able to deal with the complexity never, until at this moment, has simplicity been so important for our customers. Our proposition of being able to take everything you need on 1 truck, with 1 drop, with 1 invoice, through an online platform that you can access at a time that suits you 24 hours a day, 7 days a week. Simplicity. Becoming net 0. Now I think this has been mentioned quite a few times today. I'm not going to steal Richard's thunder. He will go into the detail about it, but I thought it was worth noting the operational pieces to this. I mentioned there, 1 drop, 1 truck, the simplicity of it, but also the sustainable impact that, that can have on your end-to-end supply chain as a customer. From a business where ESG sits at the heart and runs through its DNA and is considered at every moment in the supply chain, which Richard will come and say, but also curate from a vast range of products and up to 12,000, 13,000 we're curating ranges of carbon neutral and sustainable product that you can then take into your outlet for your consumer and market insight. So we've talked to PROOF, and we'll talk to it more later in this presentation. Every bar, and every tap on the bar, every bottle on the back bar, every pack in a retail outlet has to justify its existence. The rate of sale, it has to be there and drive the profitability for that outlet. Our PROOF insight, coupled with our category management, puts us in a unique position to provide that information to help the retailers and the outlets to make the right choices. And last but finally means lease enhanced ordering. I touched on it earlier. We'll go into this in more detail later, but this is about making the ordering process as simple and efficient and effective as possible. And when we listen to our customers, that then defines how we look at ourselves and how we compare ourselves to our competitors. So I look along the top, take you on the top, this is where our customers are asking us questions. They want to know do you own your network. Do you have your own people? Because the disruption over the last couple of years has really highlighted the importance of being in control of your network and being able to make decisions, being able to be agile and deliver against the commitments that you make. Have you got national reach? I'm opening outlets. I'm an on-trade customer and opening outlets and I'm going national. Can you provide me the range in the service in London as you can in Scotland? Do you care about joint the distribution? Is it everything to you? Or do you have loads of other interests and other things that might make you a bit more margin or take your focus away both C&C, this is our business. This is everything. E-commerce. I come back to the message about simplicity. Customers need speed of service, speed of delivery, they need it now, they need it in the most efficient and effective manner that they can get it, and e-commerce is pivotal to that. So customers will come to us and say, do you have the best e-commerce experience? Are you going to tailor your message to me or not? Yes, we are. Credit. Patty touched on it earlier. It's been an interesting couple of years, and this is a real strength point for us, our balance sheet, our position as a business, it puts us in a position for continuity of supply. It enables us to work openly with our customers, and it gives us a unique advantage versus a number of different ones of our competitors, and a business-to-consumer platform. Every single channel wants to know if you're doing it and if you are doing it, how are you doing it and are you doing it well. And then we benchmark this against our competitive set. Now the 6 is up here today -- sorry, 5 up here today, but we have an additional 1 that I'll touch on. So third party, this is related to your trade team and your GXO. Looking at your beer wholesalers, these are Heineken's, your Molson Coors, it might even be United Wine and like back into the Heineken business in Ireland. We've got your cash and carries, you by car, our best way, they're looking to come into this space with attractive margins and you're on-trade wholesalers so some of your traditional's your LWC in England and Wales, you're in VAR Morton up in Scotland and food service. Again, the food service with brakes, carry foods, looking to do the field composite supply. And the one I haven't up here, but to be aware of as we continuously look for new entrants in the market and assess their ability to deliver in this space, especially if they come from a digital foundation. So an Amazon or a Master of Malts. So when we look across these metrics and we look across our competitive set, this is how we're stacking up. We're robust, yes. You look at it against our competitive set. We are robust in this area, but we're relentless because there's always space for improvement. The continuous improvement and continued investment in our system is vital to make sure that we continue to be in the market that we are able to react to the ever-changing landscape and the needs of our customers. And then we're able to remove unnecessary duplication and waste from our business. So delivering the ambition. The system is about facilitating our ambition. Our ambition is to grow our brands. It's to grow our agencies, it's to grow our customer numbers, and it's to grow our share of their bar or their retail. The system and the capacity within that system enables that growth and we're going to do it 3, 4 ways: Enabling our people, deploying technology, leveraging our insight through PROOF and really driving the efficiencies in our network and optimizing that ability to free up the latent capacity. So starting with people. You'll be aware, we touched on it earlier, 3 businesses, 3 businesses with 3 leadership teams, 3 of every support function, whether you're talking HR, procurement, finance, customer services, running on 3 different P&Ls, 3 different networks, mass amounts of duplication. We've taken the time to develop C&C GB, 1 business, 1 management team, 1 function, 1 P&L galvanized behind 1 core purpose and 1 ambition. Patty talked earlier about the EUR 18 million saving, and this is a significant contributor to that. But we didn't do it without considering what this meant for our customers, a conscious decision was made to retain the route-to-market brands. Our customers engage with those brands. But what this has enabled it to do is our customers can consider a wider offer from us now. So if you're a Bibendum customer that used to deal with our business to buy wine, you now go on to your platform and you have access to all of the portfolio that was available through Matthew Clark and Tennent's, provided it's appropriate for your outlet. If you were a Tennent's customer, you came to us for beer, you bought a little bit of your wholesale and additional third-party products. Now you can see that we've got wines. We've got different ranges of wines. We open up that offer, so our customers are able to access it. We are able to sell them more on the same delivery we were making before and get -- and ensure that they're more sticky. And within that, we have the proportion of our brands and sharing our brands and our brand recognition within each of those categories. So moving from there into our sales force and using technology to enable our sales force. The 320 of them, they're nationwide. And we're moving them into category and brand selling. We're investing behind their capability. We're investing into training and we're allocating resources in the right way to support them. But technology is absolutely fundamental and ensuring that we get that speed. We have the right customer conversations at the right time with the right brands in mind. The next phase for us is rolling out a CRM -- a consistent CRM system across the group. This gives us 1 of 2 things. One, it collects the data that we need with the permission to reinforce PROOF's insight, that's insight into the market. It also gives us a second piece, which aggregates the information about the customer into the hands of the sales force to be able to have the right quality conversation with each customer. A higher-quality conversation targeted to that customer with the right brands at the right price at the right time. We're automating our pricing engine, and this is forecast on removing the time it takes and the administration it takes to get a price to a customer. It increases the speed at which we can respond to customer requests, increases the speed that we can respond to new business requests, increases our governance and our visibility. And last, but by no means least is how we use big data through PROOF. I heard from Lucy earlier about how we utilize that information to support our brands and how we can then target and drive the brands into specific outlets. What we can also do with that information is on a customer level. So we're able to aggregate that information to provide to the sales force of which outlet you go into? When is the best time to go there? What are the best -- what's the best range to have? Here were the consumers walking in there and therefore, what's the best pricing ladder that should exist? How do you create value for that outlet? So the team will have more time. There'll be more forecast, and they'll be able to unlock more value. In terms of our customer experience, so we made a commitment that all of our on-trade rate to market brands would have an e-commerce platform, and we delivered that in January this year. So across U.K. and Ireland, every single 1 of our on-trades routes to markets have an e-commerce system that's tailored and personalized to that customer when they go on to that website. We know that our online customers are more sticky. So with their average dwell time, they can explore further, they can see the range more effectively. Our average basket spend is 57% higher through an online customer than it is through someone who purchases through the contact center. And it's 3x cheaper for us to take that order from a customer through our online platform than it is through our contact center. And we currently have 63% of our customers online. With the exception of 1 business unit. So our Tennent’s Northern Ireland business has got to 100%. So we're taking the learnings of how they executed that with every single one of their customers and applying it into the rest of the group to hit that target of 100%. We're also investing behind the platform. We've won awards. We've won accolades in terms of our thought leadership in e-commerce within our industry, but all of our customers are consumers. Technology is part of our everyday experience of shopping, and we expect that from our business-to-business e-commerce relationship. And we're investing behind a customer query resolution, chat bots, enhanced service, being able to track your order. The experience of being able to get your product from point of order into your outlet should be the same as when you order a pizza, and you can bring it back to your home. The more customers we bring online, hitting that 100% enables us to drive additional revenues from our supplier base. So we're already drive revenue into the company from our existing suppliers, the more customers we have, the more quality of information they can gain on the consumers and the higher revenue that we can bring in. It also allows us to cut through for their brands within that space. So as David referred to, the darkening of markets, this becomes incredibly important in being able to get that brand, that bottle shot in front of that customer or that retailer making the choice to put it on their bar or put it in their outlets. And it's also about non-drinks revenue. There's an opportunity when we had a certain number of customers that enables us to unlock revenues from non-drinks suppliers, and we're testing this at the moment. So suppliers and technology. We deal with over 1,000 suppliers. We deal with suppliers who work on a global level. And we work with the Advantage Group survey, which is a company that helps to facilitate anonymous feedback from the supplier base. How we work with our suppliers, the speed at which we work with our suppliers and the transparency that we work with them is incredibly important. A supplier portal is launching this year. This will remove the unnecessary cost. It will remove the administrative burden. It will enable us to have transactional relationships where that's appropriate and it will free up the time for us to have deep partnerships with the suppliers, we choose to spend our time with, and we choose to put through our distribution network. The second piece is around data and insight, and we've touched on it on the way through. This is incredibly valuable to suppliers in terms of how they target their brands. Through the PROOF business that I will come on to, we have the highest quality of information that allows brands to target exactly where and when. We launched a digital platform, which enables suppliers to access their information from our business about their sales, their depletions, where are their brands stocked. How is it performing and creating one common language between ourselves, the supplier and the customer that enables that collaboration. They can work with the information live within the platform, and they can manipulate it and come back with their performance. We're looking to roll this out wider across GB. And PROOF, it's been talked about a lot today, and I think Lucy did a fantastic job in summarizing PROOF and in terms of what they do. It's really important that PROOF remains the independent voice within the industry that it feeds our brands. And you can see the value that it's driving for our own brands. And you can see from some of the examples with Innis & Gunn, the value that's available for our brand partners. I think one of the really good examples in this space is the exclusive on-trade distribution with Moet Hennessy in Scotland. The combination of our system strength in our network with the fact that we could show them the scale of the opportunity, where to target their brands. And also when you take their brands that are so long-standing, actually, where to take it out from, where do they not want their brands? We can identify that, and we can help with the strategy of removing them, making sure that the equity and their brand is maintained in the way that they choose it to be. The second area for PROOF delivery is around supporting sales growth and customer retention. So a really good example in the on-trade of working with M&B, the pub group. They wanted to understand and build the perfect wine range. But they've got outlets in all different types of conurbations and different post codes and trying to build something generic wasn't going to be fit for purpose. So they worked with PROOF who understand their consumer demographics within the post code. They know who's walking into every single pub and build a bottom-up wine range. Site by site, post code by post code, they've built up the right and appropriate range for each of those outlets that then allowed them to purchase one composite range of wine from us. A second example in the off-trade is about one of the premium grocers was having a challenge within their premium wine space. They were underperforming versus the market. They needed some views on it and something that was different and detailed with the work that PROOF undertake with that customer, we were able to drive a trial, drive the performance within that trial, so that it will be rolled out and our brands, our own brands within wine features within that category. So we've driven overall value and value for our brands within there. And last but by no means least, it's about commercializing the data and intelligence. Our top 50 suppliers spend roughly GBP 750 million a year on DBM, right? So when they're marketing, and insight spend. If we go for 1% of that, it's a pretty significant opportunity. We're already generating income in this space and believe there is more headroom for growth. And our network. Freeing up our latent capacity. Three areas for here. One is around system technology. So we're implementing a consistent ERP system across the group. This enables technology in a consistent manner in each of the depots across the network, and there are numerous benefits to this. But a couple that I just wanted to play. One of them is around E-POD's and actually, E-POD will enable us to be more effective about our loads. So where we're sending part fill trucks, maybe 5 or 6 trucks we'll be able to send to. That efficiency, that granularity of efficiency and the fulfillment within the trucks enables us to drive -- sorry, to remove inefficiencies and drive the cost benefit per case. The second piece is around wearable technology. So while at the moment, it takes 6 to 7 individual movements to pack a case, to put on to a lorry for a customer's order, wearable technology moves it to one. So every single packer within the network has wearable technology that allows them to pick up a box, read the barcode and move it into their order and delivery. The efficiency created on every single case, every single movement is vital to driving out the inefficiency and releasing the capacity. The other piece for us is around measures. So with this technology, we're able to see what's our fill rate? Is our journey planning effective, is our loads -- our loads effective, how long is the dwell time at each of the outlets or each of the delivery points, even down to how much is the braking speed of the individual vehicle? And being able to look at that level of detail and be able to pull out any unnecessary duplication and any unnecessary cost drives the efficiency. It releases the capacity. The second piece to talk about is people. And we've talked about this a couple of times today. The labor market has fundamentally changed, and we need to keep up with that. In fact, we need to be ahead of it. And in order to do that for us, this is around investing in training. It's about working in customer service and logistics being a career. It's about ensuring and again, as Richard will touch on, we hold health and safety at the core of our business. It's about skills, it's about making sure that people can be upskilled in rewarding that and incentivizing that behavior because we know that trained people within our customer service and logistics business unlocks capacity for us. It frees up capacity, that efficiency, the pick rate difference between someone who is fully trained and been on the journey is 400x faster. And that brings me on to operational efficiencies. It's the marginal gains. It's about discipline and it's about compliance, and it's within our network, but also about how we work with our suppliers and with our customers. Patty showed the slide earlier with our supplier inbound, not the most comfortable conversation for someone who looks after procurement. But the efficiencies that we can gain from getting that supplier inbound from its current state up to the 90s, up to where it should be. We should not be taking the burden between the difference of the supplier and the customer route. That frees up capacity. The way that we work with our customers' end-to-end on their supply chain, the forecasting the demand planning, we need to work together to smooth it, smoothing our ordering days, making sure that we use the capacity in the right way across the network, minimum order value. We want to pack more cases, less single bottles where it's appropriate. We want to do 1 delivery, and do it effectively. And all of these individual actions enable us to free up the capacity, remove unnecessary cost and eradicate the waste from the network. So just to finish, we do have a market-leading system today. We're good. We're robust. We're going to be great and we're going to do it by making all of the individual changes on every single transaction that runs through our business. We're going to be relentless in the pursuit for continuous improvement. And when we get to great, we'll class it as good, and we'll start again. And that creates the room for us to grow. We're ambitious. We're going to grow our customer numbers. We're going to grow our brands and agencies within that, and we're going to take more share of the bar and more share of the store. And by releasing and freeing up the latent capacity will facilitate that growth. And we're going to do it sustainably. And at that point, I'm going to pass to Richard.

I love the big buildup. I'm Richard Hayhoe, whilst I'll give you a moment to even begin to imagine how tough it was growing up with that surname, I'll tell you that I'm a Corporate Affairs and Communications Director for C&C. I've been in this role for approximately 6 months now, having previously spent 4 years as Marketing Director for 2 of our route-to-market brands, Matthew Clark and Bibendum. And I have to say, when David was very kind enough to offer me this role, I just thought goodness, me, sustainability. This is for the engineers and the mathematicians, right, and the scientists. And how near are we if we're going to take sustainability into the route of C&C. But what was delighted and somewhat relieved to find out was that we're already doing that. We're already a business that doesn't talk about sustainability as a parallel business unit. It's routed in everything we do. So I'm going to talk to you about 4 areas of our ESG strategy today. The first 1 is reducing our carbon footprint. And I'm sure you're sick of hearing people saying that they're going to be carbon neutral by 2050. So what? So what? Some of the most unsustainable brands are quoting that. If we bring that forward about 20 years, by 2030, we're aiming to reduce our carbon emissions by 35% in Scope 1 and 2 and by 25% in Scope 3, okay? So we're thinking a little bit shorter term. It's really important that we sustainably source our products and our services. So I'm going to give you a little bit of an update on that today, how we're collaborating with our suppliers and how we're collaborating with our customers to make sure we're driving down our Scope 3 emissions. Importantly, as well, we're an alcohol business. David talked about us bringing joy, and we love to bring joy. And I'm going to talk to you a little bit about how we participate in the communities in which we work and the communities in which we serve. And finally, and it's really never been more important post pandemic to talk about how we're supporting our colleagues, how we supported them through the pandemic and what's more, the changes we've made to support them as we get returned to a new normal. So there's no better way really to bring my claim to life about sustainability being routed in the business in which we work, then to talk to you about some of our brands that Lucy has talked to you about today. And thank you, Lucy, for not taking all of this in advance because I have had no material, believe me. But when we talk about Bulmers and Magners, remember, this is a brand where we grow the 17 varieties of apples on our owned 165-acre orchard, okay? A brand where we've just invested in Clonmel, in County Tipperary in what is now Ireland's largest rooftop solar power farm, okay, which is actually delivering circa 10% of the electricity to the site. So that now in Clonmel, 100% of electricity comes from completely 100% renewable sources, which is a fantastic achievement. We're also CO2 self-sufficient using carbon capture, okay? We actually can capture that CO2, and we can put that back into our product, okay? And we're not reliant on third parties for our CO2 anymore. So we actually use that to put the sparkle into Bulmers. So when we talk about sustainability in everything we do, I think importantly as well as the sustainability project in Clonmel, we committed to an out of plastics line. And as of January 2022, we are out of plastics in C&C products in Clonmel, okay? And that's having -- putting that in context, it's about 100 million of those Mid-Con rig counts that you used to see on packaging, on beer and cider, et cetera. So that's gone, okay? We've taken that out of the environment. The one thing I would really love about going to Clonmel, and when you look at our orchards, okay, surrounding the orchards, there's 13 kilometers of planted hedgerows, okay, which is home to millions of bees and pollinators and birds that increase the diversity -- the biodiversity of our orchards. And we often say, without bees, there is no Bulmers, okay? And I'm delighted by the fact that in that -- with that commitment to biodiversity, we work with the Tipperary Beekeepers Association. And we have our own [indiscernible] on site. We have 15 beehives, okay? In association with the Tipperary Beekeepers Association, it's looked after by [ Jerry ], our beekeeper and [ Amon ], our farmer. Now I think my colleagues think I make those 2 people up. But just as a fact check, I did check with [ Shane Gibson ], he is our Operations Director and Dave, they are actually on our payroll. I wasn't making out for a fact. Just a couple of other points I wanted to point out, the Solar Power farm, that's effectively taken our net carbon emissions down by 4%, okay? So we're continuing to invest. And also, when we talk about bringing joy and Lucy touched on this earlier, we take our commitment to responsible drinking really seriously. So we put innovation. We've invested in innovation in Bulmers Light and 0-0. We've taken the alcohol of Magners and Bulmers to produce a 0-0 version. And we've taken the calories out of Bulmers Light to make that product now, which is only 86 calories per 300-mil bottle without compromising on the taste and that any of you who've tried a hard seltzer before, believe me, you'll find that this product as well as being much lower calorie has not compromised any of the taste whatsoever. It's a really fantastic product. And we couldn't, of course, talk about our brands without talking about Scotland's favorite beer, okay? And Tennent's has been brewed in Wellpark now for hundreds of years, and it's 100% from Scottish barley, okay? 100% from Scottish barley. The water comes from Loch Katrine, okay, which is a freshwater Loch in the Scottish islands just east of Loch Lomond. So we're using products grown and sourced within Scotland, which is really important. And we talk about rebrewable energy and 100% of electricity used in Wellpark is providable by renewable sources. But also importantly, we've extended that, and we can make that claim around our Scottish depot network as well, which is a fantastic achievement. And it's a massive not to the work that the operations teams have done and our logistics teams have done to achieve that. Again, we talk about [ CO Brew ] carbon reduction. The great thing about the carbon reduction and carbon capture is that we use the byproduct of the brewing fermentation process to carbonate Tennent's, okay? So -- well, what that actually means that we're taking -- because we're not reliant on third-party CO2, we're taking approximately 4,200 tons of carbon dioxide out of the environment. And if you want to know what that looks like, that's approximately 27,000 flights from London to Glasgow, which I think Andrea has nearly racked up at the moment. We've been out of plastics in Wellpark since 2020. And we were the first brewer to join The U.K. Plastics Pact. And we're really proud of that, and we continue to reduce the ecological footprint of our packaging and our consumer packaging. Waste reduction, Patty talked about cans and aluminum earlier, and we've got a project at the moment where we're reducing aluminum, and we've taken 100 tons of aluminum by just changing the format of can and making a lightweight can, and responsible drinking. Well, if you have had spoken to us at the last Capital Markets Day and say, due to a Light version of Tennent's or due to a 0 version, well, particularly with the Light version or a lower calorie one, we would have said with our [indiscernible], we just have 0.5 pint. But since we last met, we've absolutely committed to developing, and we now have Light versions, Tennent's, we have 0-0 version of Tennent, and we also have a gluten-free version of Tennent's, with continuing innovation. And as Lucy talked about earlier, brands like Bulmers Light they're working in Ireland, we're looking to bring into the U.K. as we look towards the coming years. So the target. So look, we are reducing our carbon footprint, okay? And we'll have a 12% reduction by 2025. We're on track to deliver that. That's the great news. We are absolutely on track to deliver that, okay? And what's doing that? We're committed -- we've been working with Zero Waste Scotland. We've got a number of projects that the operations guys and the manufacturing guys have been looking at in terms of reducing wastewater, which is really important. Alternative fuels, it's really interesting actually because something like anaerobic digestion, okay? So biogas energy anaerobic digestion. That's now providing approximately 8% of the heat requirement in Wellpark Brewery. And it's -- and approximately 12% in Clonmel. So we're constantly looking at ways where we can use the byproducts of our processes to reduce our carbon footprint. And of course, we're completely aligned to size-based targets, okay? And more importantly, this year, we've taken our reporting that we have aligned it to the TCFD standards, okay? So this year, in particular, we've made sure that we're aligned to TCFD. David talked earlier about putting our money where our mouth is, and we absolutely do that because our exact LTIPs are all bonus around sustainability. So we've got a commitment in there. So if we win, we all win. Scope 3 is really important for us because obviously 95% of our total emissions in C&C is Scope 3, okay? And we've made a commitment to a reduction of 8% by 2025, and we're on track to deliver that. So we are making progress, and we're on track to deliver that. Importantly, when we talk about that, you look at kind of 130 suppliers and 67% of that comes from working with those suppliers. And the really important thing is -- for that is we are actively engaging with those suppliers and our customers to make sure that we can reduce our Scope 3 emissions. And we do that by the -- and we're committed with those suppliers to get the suppliers onto science-based targets, okay? So educating them and getting them aligned to science-based targets along with what C&C have been doing for some time now. And interestingly, we were recently awarded an A rating by CDP for our engagement with suppliers and the efforts that we're making in terms of engaging with suppliers to share best practice in terms of reducing our Scope 3 emissions. And I just wanted to call out 1 example of that. And you've seen the brand, Gerard Bertrand come up a couple of times today in presentations. And Gerard, he's really a leading light in sustainable and biodynamic winemaking in the South of France, okay? Gerard chose C&C to be his partner in The U.K., okay? It's a fantastic brand. You'll have an opportunity to try some of the wine today. It's an absolute fantastic brand, but he chose C&C because we are perfectly aligned to his values around sustainability and biodiversity. This is a guy who's got over nearly 900 hectares of cultivated vineyards that cultivated biodynamically. He's working in partnership with other growers in France to spread that best practice, and he's got over 40 partnerships now across 1,600 hectares, okay? Again, looking at soil, looking at biodiversity, and like us, looking at the natural ways we can improve biodiversity with bees, with sheep, et cetera, et cetera. Of course, 1 of the things that we're always conscious about when we talk about bringing joy, and we do bring joy to consumers across The U.K. and Ireland. But we have to be conscious of the fact that some people do have issues with the products that we sell, okay? And when those people -- when that small minority of people do have issues with alcohol, et cetera, it often means that it's foundations like The Big Issue, in charitable partnerships that are picking up that and working with those individuals to support them and get back into mainstream living. So I'm really pleased that we've been able to give back here. And we're going into a partnership with The Big Issue Foundation for 3 years, okay? And look, this is more than just a donation, right? This is a meaningful partnership, okay? It's easy to write a check, okay? This is a meaningful partnership where we are going to work with that foundation. The foundation that in The U.K. is quite a lean organization, only 120 people in the whole organization that are dealing with the same and very much aligned to our charitable pillars, which is around homelessness, mental health, also addiction and -- sorry, I forgot the last one and addiction, mental health, homelessness and food poverty, okay? So The Big Issue Foundation works in all those areas. And there's a great opportunity for us to work with them. And it's a real commitment from us to help make a difference over the next 3 years. And what will that look like? When we talk about immersion and education, we will do sponsored -- we will do Vendor Days with Big Issue sellers, okay? We will go out with these Big Issue sellers, and we will see what they face on the streets. But more importantly, we'll educate our colleagues -- we'll educate our colleagues about the issues that these people are facing, okay? So we've made a commitment over the 3 years, we will do Vendor Days. And that would be right from our Board right across our business. This is really important that people engage with this and understand the impact that we can have. Importantly, 1 of the main things is getting people back into mainstream employment. And we've made a commitment that we will get some of these people back in to mainstream employment with C&C, with our partners and with our customers. You've heard an awful lot today about the pressures on hospitality industry, the pressures on labor and workforce. And I think it's really important that it just seems crazy that there's people wanting to and willing to get back into work, and we can make that happen. And we've made a real commitment to do that over the next 3 years. So we'll have people, we'll take people back into mainstream employment and more importantly, back into mainstream life, which will be fantastic for our business. And it's a great foundation to work with. Importantly, I said that these guys are very lean. And obviously, every penny counts. But we've got a wealth of experience and skills across our business, that we can do skills transference with The Big Issue Foundation, okay? So a lot of the work that we do around marketing, digital marketing, training, customer services, et cetera, as well as of course, logistics, et cetera, we're going to use those skills and we're going to get people equipped to get off the street and back into mainstream life. And I'm really excited to be able to do something, and it feels really good to be able to give something back, something really meaningful in this area. And of course, with our 0-0 brands and our Light brands, we have a great opportunity to do calls related marketing campaigns, okay, where we can use each other's audience to get a message across around The Big Issue Foundation and the people that The Big Issue Foundation is supporting. Last but by no means least, our colleagues. And look, you don't need me to tell you what a tough couple of years it's been for everybody. We've all been separated from our work colleagues. We've been separated from our families and it's been a really tough time. And I think what we found is that our colleagues need our support more than ever. David talked about this being more than just a job and an engaged workforce and a workforce where people believe that they're valued. And that's a huge commitment that we've made. The first thing I want to talk about is health and safety. And we are maniacal about health and safety. In operations, in logistics, we are absolutely maniacal about making sure that when a colleague comes to work in the morning, he returns home safely to his family and his loved ones every night, okay? That's it in a nutshell. And of course, we've got all the RIDDOR reporting, et cetera, but that's our commitment. Every single colleague returns home safely to their family every evening. Of course, aside from physical health, we talk about mental health. And if anything, during the pandemic, we will learn just how many people are struggling with mental health issues. And we made a commitment in C&C to actually train our colleagues. So in association with St. John's Ambulance, we've trained 50 and appointed 50 mental health first aiders across our business, across every function across the business, okay? The fantastic news is that we've got 100 more volunteers to train. And we're going to do that this year, okay? That will take us to about 5% of our workforce that will be trained in offering support, advice somebody to talk to, somebody to spot somebody having difficulties or maybe having an issue. So we'll have about 5% of our workforce by the end of this year, okay, who will be trained in collaboration with the St. John's Ambulance team, and it's a really intensive piece of training to help our colleagues with their mental health and well-being. Inclusion and diversity, and we are absolutely committed to, regardless of your gender, regardless of your ethnicity, regardless of your [ belief route ], everybody should have equal opportunities and be valued and respected in C&C, okay? Last year, we did our first getting to know you survey because it was really important that we benchmark how we perform where we are now. And I think like every business, we realize that we've got work today, okay? We're doing a lot, but there's more that we can do. And again, we won't lap on that, okay? And we've seen our Board becoming more diverse and we've seen Board sponsorship projects as well. Clara, my colleague, who was talking earlier, is currently taking on an inclusion and diversity work stream and has got a project group set up. We're engaging with our colleagues to talk to them about what they think we need to do to be better at this and what commitments we need to make in order to be better at this. We've benchmarked where we are now, but we're absolutely committed to make an improvement in that and working to make C&C a more inclusive and diverse business for everybody. Alongside that, David referenced earlier, employee engagement. And it's really interesting that we talk about how important it is now that it's more than just the salary. We want our colleagues to be engaged. Clara referenced how, when we've got engaged colleagues, just how it's good for us, too, in terms of productivity and efficiency, yes. We want C&C to be a great place to work for everybody in our business, okay? And last year, we completed our first Peakon employee engagement survey. Now Peakon, I'm sure a number of you are familiar with, the global experts in employee engagement, not just in doing surveys, but in helping you improve employee engagement. And we run 2 of those now every year. And we've actually got 1 running at the moment that closes at the end of May. The most important thing about that is that it's not just about the survey, it's about the actions coming back to our Board committee, an unknown executive committee, okay, to be a signed action and to make a commitment to improve in those areas that mean the most for colleagues. And we've absolutely -- we'll continue that commitment. And I'm really looking forward to what we found out since the last survey to when we receive the next set of results from this survey in May. And I just wanted to finish on responsible drinking. Whether you're a marketer and you need to market our drinks responsibly, whether you're a wine trainer, he teaches people to appreciate why, okay, whether you work around the product, whether you manufacture the product, you brew the product, it's absolutely mandatory now that we partner with the leading training resource in this area, Drinkaware, and all our colleagues will go through drink awareness training, okay? Absolutely mandatory from spotting their understanding their own relationships with alcohol through being able to spot where they might be consuming more, but educating as well as our responsibilities as a responsible manufacturer of alcohol that we promote responsible drinking across our business. So I am in sustainability. So I'm never afraid to recycle a slide. So in summary, okay, particularly when it's very late in the evening. In summary, we are reducing our carbon footprint, okay? We're investing in reducing our carbon footprint. We're doing the right things with our suppliers, producers and customers, importantly, as Clara talked about in reducing our carbon footprint. We're sustainably sourcing our products. We will ultimately prioritize suppliers who are as committed and his values align with us in terms of when we list the product. And that may mean, and Clara might kill me for saying so, that might mean that we make a choice to take some of those suppliers out if they're not aligned to our values, but that's how serious we are about this. Working in our community. I mean, obviously, I've talked to you about The Big Issue today. It's really important that we give back. And I think in the -- for the first time since I've been in C&C, I think this is a real opportunity for us to give back and work with The Big Issue Foundation to do something really meaningful in our communities. And finally, supporting our colleagues. Our colleagues are at the heart of our business. We've got just short of 3,000 colleagues, Patty, and it's absolutely important that a critical time with everything you've heard today around the labor market, engagement, engaged colleagues that we're doing everything to support the colleagues that we have to make C&C a great place to work for them and to make everybody feel valued and respected. So listen, thank you very much for listening to me today. And I think I'm handing you back to David.

Thank you, Richard. And last slide before we open it up to Q&A, which I know is very important to those in the room and the 100 or so that are listening in to us and watching us on the webcast. And I try to bring it together into what we call the investment thesis, why invest in C&C? If you're an analyst here today why I recommend C&C, if you're a current shareholder why buy more shares? And if you haven't got shares in C&C, why should you seriously get out and buy some as quickly as possible. So 1 slide to bring that together. And the start of the first one is I hope you've seen from Lucy. We have strong brands, but more importantly, we can build brands into the future. We know what needs to be done. We're willing to do this, and we've made this decision to get at us. Building brands is not the domain of our competitors. We have every rights to do it, and we know we need to build and build in premium. We'll focus on cider, we'll focus on premium beer, and we will continue to be a Magners for interesting, exciting agencies, some of the most innovative thinkers in our industry that will want to come to our business because we have the distribution power. The second thing I hope you've seen from Clara is that we have an unrivaled distribution network. It's good. We're going to make it great. We're going to be unrelenting in improving our distribution system to win more customers, to win more share of the customer and to win more share of the customer with our brands. We will deploy technology to make it as efficient as possible, and we will deploy technology to make it as easy as possible for our customers and our suppliers to interact with us. And we will finally deploy technology to make it as easy as possible for our hunters, our 320 salespeople to go out and win new business for C&C moving forward. And I hope what you've seen from our -- the slide I presented earlier day on the time line. We're a lean, we're an agile, and we're a very, very committed organization. And you only test and see a real organization in tough times. Good times, it's easy to be great. The last 2 years have been really tough. Dedication, hard work, commitment, going the extra mile collaboration. That's the essence of C&C. This is a dynamic, agile, modest, humble, hard-working organization that has demonstrated it can sustain and ensure the toughest of times. And there may be tougher times ahead. I find it hard to imagine they can be, frankly, when you've been through what we've been through a bit of inflation, that's kindergarten stuff for our organization now. So to say it's not important, but my gut, I think we can deal with this. The fourth deal, I think you see from Richard is we're committed to sustainability. It's deep in our DNA. We have some of the most sustainable brands in the country. We've been investing and we will continue to invest, because it matters to our consumers, it matters to our customers, it matters to our suppliers and importantly, it matters to our colleagues. I want our colleagues to be proud of our company. I want colleagues to be able to go home and say, I work for C&C, where a business that cares about the planet. We care about people. We care about our communities. We put our money where our mouth is, as Patty said, we invest in sustainability, and we will continue to do so. We will be unrelenting in our commitment to make the world at greener place and to make our communities a stronger place, especially when we talk about the world of alcohol. And if you listen to Patty, I think what you have seen is our financial strength is returning. I'd like to refer to as financial optionality. The balance sheet is getting stronger. The EBITDA is recovering, and that's fundamentally going to enable management to have choice. And we will make the right choices. But flexibility moving forward gives us choice and choice ultimately gives us power. It gives us power. It gives us flexibility. And I think what you hopefully will have seen as well is that we have growth opportunities. We can win more customers in the on-trade and in the off-trade. We can win more share of the customer in the on-trade and in the off-trade. And we can win more share of the customer with our brands and our agency brands. Lucy showed you our share in cider. She showed you our share in premium beer. We don't really have to worry about what's happening in the market. We have to worry about what we can do in our business to grow. We have to focus on controlling the controllable. And we have enough scope for growth in that. And if we do that, we can grow our revenue. But importantly, we can also expand our margin. And that's the journey that we want to go on over the next number of years. And finally, again, as Patty talked about and alluded to the signposts, of course, we want to get our distribution margin to 4%. We're confident that we can get there. We are well on our journey to delevering the business, and that gives us flexibility, particularly with respect to shareholders moving forward. And again, that's something that we have a real appetite in the Board to do. We want to invest. We will make our business more efficient. We will strip out all unnecessary costs. And rather than putting that money straight to the bottom line, we will invest it in our brands, and we will grow our DBM towards 10% over the next number of years. And lastly, we will continue to be a business that generates cash. I think that's very important. I think shareholders value companies that have a great track record in generating cash. And I hope that as I do, you look at that slide and you listen to our team, and you say simply that makes sense. That feels credible. It feels plausible. It feels doable, Chairman is not easy. It's not easy, but it's doable. And that's the journey that we are on in C&C. And with that now, I'll shut up and open the floor, either virtually to our webcast guests which you and I know you'll facilitate or equally firstly, if there's any questions to the floor, I'm going to ask Patty to join me up on this stage. And if I need to deflect a difficult question to Richard, Clara or Lucy, we will do that. And if it's a really, really, really difficult question, I'll deflect it to you, Stewart, okay, it's not a free ride here today. Okay. So I'll open the floor.

Patrick Higgins from Goodbody. Just firstly on near term, I guess, just on input cost inflation. You mentioned 25% input cost inflation. Could you just give us a sense when that is the P&L or when hedges roll off on that? And I guess you've already achieved 3% or 4% price increases. How much would you need to get to offset that kind of 25% that you spoke to? Second question is more, I guess, on just the wholesale market landscape and distribution competitive landscape, sorry. You've mentioned the strength of your model, your balance sheet and compared to some of the other incumbents. Have you seen any, I guess, signs of some of those weaker competitors retrenching and opportunities for you guys to take share of those guys? Or indeed, have you seen other operators potentially looking at getting involved in distribution, whether it's an Amazon, given the importance you've clearly flagged of having a good distribution network?

Okay. Patty, I'll let you take the first.

I'll take the first one. Patrick, I think we're going to see it pretty shortly, actually. I mean, our hedges all rolled off at different times, clearly, and it's a pretty complicated web. But we'll see the majority of that 25% hitting in FY '23. Again, I'd make the point that even with that, we're about EUR 15 million better than the spot market is. So even though we're lapping a really good performance, I think we're still ahead of the game. In terms of what we need to do to offset that, well, clearly, if our top line is EUR 1.6 billion, a couple of percent more than does it. Again, you'd like to focus it a little bit. The cost inflation is more felt on the off-trade for our own brands. But again, I think being realistic about it, we won't be able to recover margins completely from that even with the benefit of minimum unit pricing in Ireland. So I think that's a multiyear claw-back. But look, yes, I think we'll start feeling inflation now. And look, we've been feeling it for the last quarter, frankly. I can't imagine we're on our own, and there's a proven, I think, solution in price. Again, I'd make the point that our price increases over the last little while have been relatively modest. In November, it was 3.5%. We retained a good more than 2% of that as we expected we would. We think about our customers and we think about some of the inflation in the marketplace, and I think David mentioned it at the very outset, price of a pint has gone up about 20%. So some of this is about us maintaining and ensuring that we get our fair share.

Yes. And I think on the distribution, I mean, it certainly feels like it's getting tougher, Patrick. You're seeing exits. We had counterpoint exit in Ireland. We've seen integration Marston's Carlsberg to mention one. I think what we're seeing with the 3PLs is stresses on the service level from customers. We're picking that up ourselves and sometimes even customers approach us asking us whether we're interested in doing business, particularly what you see is in certain geographies where some of our competitors are particularly weak. And customers, as Clara alluded to, are looking to go more national. I think that's certainly and so that's emerging. The big issue, I think, from customers is this idea of the one-stop shop. And I think many of our competitors, if you looked in Clara's grid, the issue of range is a big challenge. Customers wanting the broader range, the one-stop shop. That's difficult to do. And particularly the brewers, they don't really want to move into wine and spirits and fully composite in the way we are in our business in GB and in Ireland. And nobody has the range we have, and nobody has learned to deal with the complexity that we're able to manage. And that's what I learned when I came into C&C having come from a more of a brewer world, the focus on working capital management, I haven't seen it at the level I see in C&C anywhere in the past. The focus on cash management, I haven't seen anywhere else. The focus on credit management, I haven't seen anywhere else. And we have talked about the likes of Amazon coming into the on-trade, they don't like to give credit to Amazon. Our industry has spent 150, 200 years giving credit. One of our great capabilities is understanding how much credit do I give to the dog and duck versus how much credit do I give to the horse and hound. Sometimes it's cash on delivery, sometimes it's cash before delivery. Sometimes it's 1 month, sometimes it's 2 months. How does the system understand what credits to give in the market. Patty talked about writing back credits. We've been writing back credits through a COVID pandemic. It's a capability that our customers really, really value. So I think that there's complexity from range, there's complexity from credit. I think there's operational complexity in terms of staff for the 3PLs. There's lots of business that some of the big 3PLs are enjoying at this moment in time, particularly again, trade team losing the Carlsberg business that I think is making it very, very difficult. So I kind of welcome it. I would welcome a tough market for another couple of years. Now it's easy for me to say that Andrea Pozzi has to run it. But a tough market, only good businesses survive. In an easy market, bad businesses survive. And I think the next while could continue to be a period of toughness.

It's Alicia Forry from Investec. I have 3 questions, if that's all right with you. The first 1, you've talked a lot about various levers for growth, but you haven't explicitly mentioned the medium-term revenue growth target. Once things start to settle down in the market, say, a few years hence, is that something that you'd be comfortable or you're thinking about possibly issuing in due course? Secondly, the international business, you didn't talk much about that at all. Is that -- should we understand that to be noncore going forward? Or why would it be strategic to keep it? And then finally, on the B2B digital ordering systems. It's great to see what you have and to hear that you're doing this because it's something we hear a lot about across the drinks sector globally. I'm just wondering how you think your technology stacks up with some of your larger peers? It sounds like it's great, but is there a big investment phase coming to kind of take it to the next level that we should be aware of?

Patty, I'll let you deal with the first one. I'll take the second 1 and Clara, I'm going to ask you to talk about maybe the third one, the technology piece. Okay, Patty?

Yes. I'm remembering stating a revenue target, I'm probably minded not to do it necessarily. I think, look, our focus is going to be on executing. I think control the bits that we can do. And you've seen that that's what we did in FY '22. It's what this year is going to be all about. Frankly, it's just managing the bits that we can control. I don't think we've ever issued a revenue target before. You'd like to think though when we do get to a steady-state position, we'll be able to put more parameters around some of the guidance that we've given and quantify some of the ambition a little bit more than maybe we've been able to do today, Alicia. But no, I don't think issuing a revenue guidance number is necessarily something that I would -- that I would race to do. I mean the focus has just got to be on managing the recovery, controlling what we can control, executing brilliantly, and then we'll reassess and try to issue more definitive guidelines at some point.

And maybe on C&C International, no, it's not that it's not important. I think, of course, deploying assets and owning assets internationally, that's something that we have stepped back from. We have a beautiful little international business that has suffered heavily also as a consequence of COVID. So I mean, we're exporting Magners and Tennent's around the world. Primarily Magners, we run with a very small team, 3 people. it's very efficient. As the markets reopen, we see our international business reopening as well. But I think it's a focused business. We can grow it carefully. The key capability in our international business is attracting and selecting the right distribution partner in each markets. And I think that's what we're going to continue to do. And then just work with those distributors, give them sufficient margin that they can build our brand in their markets and that we get a sufficient return for the efforts that we make. So again, it's not the priority today. It's a nice piece of business. It definitely wouldn't walk away from us. We think we can grow us further, but we would be very careful about how we do that. And then maybe, Clara, just on the system.

Yes. So in terms of we carry regular reviews, so whether it's within industry and within market or on a global level. We also compare to direct-to-consumer websites as well as an e-commerce platforms rather than just to business to business because we know that's where the kind of future expectation is. We're very comfortable with the base technology that we have and that gives us enough breadth to be able to stretch into the areas that we want. So -- sorry I hope this -- is the feedback very terrible? So we're really comfortable with the technology that we have, the base technology that it supports our requirements over the next few years. And a lot of the capability already exists. We just haven't unlocked it across the group yet.

Damian McNeela from Numis. First question is on the 4% distribution margin. It's pretty clear that there's quite a lot of work that needs to go in to achieve that. I'm just wondering, Patty, can you give us a sort of a shape of how that 4% builds out? Is it sort of 2, 3, 4? Or is it sort of 2, 2, 4, I guess, it's the first question?

No, look, I think it builds -- and it's funny. It's a bit of a deja vu on because I think I answered a very similar question at our last Capital Markets Day. And at the time, we were talking about 3-plus percent and how do we get there? And the biggest single building block in that was cost. And I think it remains cost. Now that we've achieved -- and again, I'm looking through the pandemic, but we achieved the 3-plus piece just before the pandemic. So we had the infrastructure in place. We had the operational leverage right where we needed it to be. And then clearly, COVID happened. When we recover, I think we've already taken the vast majority of the actions we need. So what we define internally this project [indiscernible], that was about streamlining our distribution network, about taking the Bibendum logistics in-house away from DHL Tradeteam. That was a significant contributor to our cost saving program. Again, that drops straight to the bottom line. We had a similar initiative up in Scotland, where we already are the #1 distributor, and then we bought Matthew Clark. We were the #2. Combining those together, taking the best parts of both, again, we freed up quite a bit of cash. So cost savings is the single biggest component of that. And almost on its own will get us there once the volume comes back and the operational leverage piece kicks in. Price increases, of course, are important because they're going to offset the underlying inflation elsewhere. And like I said earlier on the cost of sales line, whatever brand owners deem fit to push through to the market, we'll try to negotiate harder leaning into our scale. So you'd like to think that there's a bit of an expansion piece in there as well, and we've used inflation to our benefit leaning into our scale, like I said. And then what we've just been talking about actually around technology the incremental opportunity that technology gives us to be that a little bit sharper, right? Just that around the margins, a couple of basis points here and a couple of basis points there, we'll get there. I mean this business can always improve. I hope you've probably gotten that sense. But we won't give up until we're at that 4%. Now I would say when we get to the 4%, I think we'll have to pause again because there is a limit to how far you can stretch it. And is that business capable of making 5%, I would suggest maybe not because it invites a lot of additional attention. Brand owners might look at it differently, et cetera. But certainly, 4% we're feeling pretty confident in the same way as 3 years ago at the last Capital Markets Day, I was pretty confident about the 3-plus percent. At that stage, we said it would take 18 months. We got there in 3 months -- in 6 months. So again, cost, a little bit of efficiency and a little bit of price and using our scale and procurement gets us there.

Just you brought time frames into it, Patty, is medium term on that sort of a 3-year thing?

Yes. Look, we go with 3 year. I mean, the phrase I used at the time, I think, was steady state. And I think when we get to steady state, we'll see 4%. And let's hope that happens before 3 years. It won't happen in 6 months, right? It won't. But yes, steady state a couple of years' time, I would say.

Okay. And then the last 1. You said part of the investment case, David, was margin expansion. How do we think about margin expansion in direct branding going up by sort of 500, 600 basis points at group level. Should we -- is there sort of a step change coming through in underlying profitability to fund that? Or should we expect sort of margins to sort of [ hits ] level before kicking on sort of after this the time horizon of this program?

Yes, I think there's a couple of things. One is -- and Andrea is here and Andrea and some of the team leading GB. We've done a lot of work on costs to date in GB on our distribution system and Matthew Clark and Bibendum to TCB piece. In the first phase of creating 1 C&C GB, we've made some progress in terms of cost. But I think we're the first day we're not there yet. So we definitely see further cost to come out of C&C GB over the next couple of years. Some of it will be enabled by technology. Louise Simpson Tarling is here, our Technology and Transformation Director, we're moving to 1 ERP in GB, that's going to enable us to make another step in terms of efficiency. So what I would like to think is that the further efficiencies we generate in our business, we will use that to fund Louise and the marketing team to drive the growth in the top line of the company. And then we better get to call because he's going to feel ignored otherwise.

Cathal Kenny from Davy. A couple of questions. Firstly, I guess, if you're successful in the execution of the strategy, particularly on your own brands into distribution network. Are you comfortable managing the potential conflicts, I guess, with your existing supplier base? That's my first question.

Yes is the answer. I think there's -- so suppliers are not fools. They understand what we need to do. I think it's actually interesting, we're beginning to see more brand owners drift towards our business to do business at this moment in time than we would have suspected. So some of the big brand owners, some of the big brewers, the big spirits companies, they like to have more Hennessy, who has got even closer to us. We're beginning to see that because I think that the alternative routes to market or their current routes to market are becoming less efficient. And I think that there is a period of reflection taking place among big brand owners about how are they going to handle distribution into the future. And it tended to be a kind of a consideration around we build brands, and we deal with end customers and distribution kind of sort itself and that's just become as Clara said earlier, an awful lot more complex. So I think that they're beginning to understand that we're seeing in a number of top-to-tops I've had recently with Clara with some of the biggest brand owners in the company -- or in the country. The engagement, the discussion, the conversation has changed fundamentally in the last 6 months. And they fully understand that we have an agenda, they have an agenda, and we have to find how we can coexist and grow together.

A related question on Magners, just relationship with ABI. Obviously, you've prioritized that brand within your organization. just bringing them on the journey, I guess, perhaps you could update us in that position.

ABI is an incredibly important relationship for our business. And it's nice. We're the brand developer in Ireland -- for their beer portfolio, they're the brand developer for us with [ Cider Wood Magners ] in the U.K. I think that we haven't collaborated and cooperated sufficiently over a long period on the development of the Magners brand in The U.K. And we weren't always quite clear who does what. We do the investment, but they do the selling. If we don't do the investment well or the marketing well, they don't do the selling well. It can become a little bit of a blame game. I think where we're getting to know for both markets is better planning, more ownership of the plans jointly. And a real sense of how can we help each other moving forward, and clearly, in the U.K. when it comes to Magners, I mean and I think, again, to be fair to Andrea and his team, they've put Magners front and center within our own business. And we've kind of said, well, everywhere we can sell Magners. And whether it's on behalf of ABI, that's not an issue, once we're selling Magners into outlet, we probably sell 60% to 70% of the cider we sell and C&C GB today is a non-C&C brand that we want to change and that we can do again together with BBG. So I think -- to be fair to both parties, we haven't jointly done a good enough job. I think we see the opportunity and I see sufficient appetite and debate and interest in both markets to improve that going forward. On Magners, I think that as Lucy has said, there is a generation that don't understand Magners. They're the 18-, 19- and 20-year-olds today. They just don't understand what that brand was and what magic it brought to the markets 15, 16, 17 years ago. And the interesting thing is to see can we rekindle that. And that's a question. And we will tackle that question very, very carefully. But if we can address this, it can create a lot of value for our company moving forward.

And 1 last question. You've called out the sales force quite a bit today, 320 people. Can you talk a little bit about their priorities in terms of -- is it new outlets offsetting or driving the existing brands? And secondly, have you done anything around incentivization schemes since you've come in?

Yes. So the answer is, yes, it's around our brands. So I think we are -- firstly, I think the fundamental principle is we're moving our sales force from what I would call gatherers to hunters. A lot of our sales force and Dave Whelan runs our Irish operation, and Dave has been to the forefront of that in Ireland. Most of our salespeople in Ireland [ appointed ] quite recently were order takers. They went into an outlet and they took an order every week. And we have eliminated that now over the last 9 months. And we are now directing our people where to go, open the account, get the customer, then we do the gathering online and we do the hunting in person. And then what we've done is, and if I use order as an example, we've taken our sales force on a sales development program over the last 3 to 4 months, I think, Dave, where we're building the capability of our sales force to sell category and to sell brands and to sell multiple categories. So the direction of travel is very much in that -- and then the incentives -- the financial incentives are heavily skewed towards winning customers, winning share of the customer and winning share of the customer with our brands. And it's a big change in our business. And I really consider those 320 people that it's an army. If we -- and when we liberate that army to do a job on behalf of our brands, I mean, I think we can have quite some significant progress. Any other questions in the room? If not, I'll -- the thing -- any last question. I know you look like a thirsty [indiscernible], and you're all thinking about this concept of bringing joy. Well, I'm also thirsty, and I know my team is thirsty but I just do want to finally just a couple of thank yous. I would like to -- I look into the camera, thank all that joined on the webcast. Really appreciate you dialing in today. Again, I want to thank all of the shareholders in the room and all of the analysts in the room that, again, have taken the time, and many of you have been very supportive of our company in the past, and we look forward to you continuing to support us into the future. I do want to take the opportunity to thank Stewart. This is your last Capital Markets Day as our Chair. Stewart has been on the Board for 10 years and took over as Chair 4 years ago, navigated the company through the 2 most difficult years of its history in the last 2 years. And for that, we really appreciate it. And I also want to welcome Ralph Findlay, who is going to take over from Stewart as the incoming chair in July. And I'm going to reference him as an industry veteran, Ralph and certainly an industry veteran with enormous experience in pubs, in on-trade, in distribution and in a lot of what we are building and looking to further develop in C&C. So I think that, Ralph, you're welcome to your first Capital Markets Day. In 3 or 4 years' time, you'll get the chance maybe to be sitting in this seat and staying around for a little while longer. And finally, I want to thank my team. I'm really proud -- I'm really proud of Richard and Clara, Lucy and Patty. They're just great people. And these things [indiscernible] a lot of frustration. When you're trying to do a Capital Markets Day with David Forde, it's a real pain in the a**. I'm just awkward. And we've gone through iteration, iteration, iteration, and I have to thank you for your patience, your perseverance, your passion and your commitment. And what's most important is I know that in this team, together with the other C&C colleagues that are in the room, that's what you have here today as a team that fully believes. This presentation is next going to be shared within our organization. This is not a story for the external world, and we have a different story internally. We will take this story that this team has developed, and we will share it deeply in our organization because the story we're telling you is a story that we have to communicate internally. I'm proud of you guys. You've done a fantastic job. We're only starting in this company. We're only starting in this company. And I look forward to having you guys on the journey. But most importantly, I look forward to bringing you all now to the bar to try 1 of our beautiful brands, be it cider, be it beer, wine, spirit. We have a bit of joy out on that bar for every 1 of you in the room. For the people that are dialing in virtually, go find a drink somewhere close by your verandas. Thank you, guys.