THE boss of beer and cider maker C&C Group has stepped down as the company revealed that the botched implementation of new software at one of its subsidiaries was going to cost it millions of pounds.
The company, which makes Bulmers, Magners and Tennent's among other brands, said that it had "encountered significant challenges" implementing the new system at Matthew Clark and Bibendum, a UK subsidiary.
In a statement the company said: "C&C Group plc announces that it has encountered significant challenges, in terms of time, cost and customer service, in the implementation of a complex enterprise resource planning system upgrade in the Matthew Clark and Bibendum businesses in Great Britain."
It said that the implementation had taken longer and been much more challenging and disruptive than originally thought.
The company said this had affected service levels and profitability at the business, and it is working to fix the problems.
C&C said that it expects a one-off €25 million (£22 million) hit due to the disruption during this financial year.
Apart from the Matthew Clark business, C&C is performing in line with expectations, the company said.
The firm also announced on Friday that chief executive David Forde will step down and be replaced by finance boss Patrick McMahon with immediate effect.
Chairman Ralph Findlay said: "David has informed the board that he believes that now is the right time for him to step down as CEO and to allow the business to go forward under new leadership.
"The board recognises and thanks David for his contribution to the group throughout a challenging period for our industry.
"As part of our ongoing succession planning we keep internal and external candidates for all key positions under review and we are pleased to have someone with Paddy McMahon's skillset and knowledge of the business to step into that role."
Mr Forde, who took the top job in 2020, said: "It has been a privilege to lead such a great business as C&C.
"I am grateful to all C&C colleagues for their dedication, resilience and commitment in recent years.
"I wish the group all the best for the future under Ralph's and Paddy's strong leadership."
