The Indianpost

Gloomy weather slows down Magners cider brewer’s sales boost

After promising trading duing the spring heatwave, Magners cider brewer C&C has revealed a slump in sales.

In the three months to May, Volumes jumped 14.9 per cent, but the firm said sales were ‘relatively weak’ in June, as the weather turned more gloomy.

But the Irish brewer still expects to hit its operating profits target of between 108million and 115million euros (£94million – £100million) for the current year.

The story in Ireland was less cheery, with lower prices cutting the revenues at Bulmers, its key brand, by 3.3 per cent despite revenues increasing.

Own brand supplier Gaymers had an even tougher time as volumes tumbled by more than a fifth, which cut C&C’s cider volumes overall by 7.2 per cent in the quarter and revenues by 0.4 per cent.

Beer brand Tennent’s, the sponsor of Scottish football clubs Rangers and Celtic, got a seasonal boost with volumes up by 4 per cent and higher revenues.

Broker JPMorgan raised its share price target after the update, adding it expects the strong growth at Magners to continue for the rest of the year.

‘We think the Magners cider business in Britain will accelerate to 8 per cent volume growth in 2012 in a cider category which should grow at least 10 per cent given 50 per cent more marketing investment by key brand owners,’ it said.

C&C said that if the improvement from the first quarter is sustained, the current intention is to invest more into Magners.

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