World Cup helps Magners score hike in UK cider sales
Sales of Magners Cider are continuing to grow in the UK. Photo PA
Tuesday June 29 2010
SALES of C&C's Magners Cider continue to grow in the UK, according to the latest market information.
Data compiled by the research firm Nielsen show that Magners sold 4.1 million litres during the period May 15 to June 12. This is a record for C&C in the off-trade category.
Sales were boosted by the World Cup and the recent good weather, combined with the surge in sales that usually comes during the summer months.
Price cuts are also thought to have played a significant role in the boost in sales.
When all of Magners's product lines in the off trade are combined, then month-on-month prices are down 5pc and year-on-year price levels have dropped 10.5pc.
Magners was not the only C&C brand that saw a surge in sales during the period.
Its Gaymer stable, which includes Olde English cider, also posted large gains, with volumes rising by a quarter month on month and by 13pc year on year. Unlike Magners, however, its prices remained broadly stable. Overall, it was a strong month for the "off" cider market in general.
Bulmers, which is owned by Heineken in the UK, was also up but Magners had faster growth year on year. Liam Igoe, an analyst with Goodbody stockbrokers, said the latest data continued a trend of growth in the UK.
Margin
"The latest off-trade data continues the positive arc of the cider market in the UK.
"The equivalent data for the on-trade a fortnight ago showed actual positive year-on-year volume increases since February," he said.
"Conversely, in the Scottish market, Tennent's volumes and market share have been declining but we believe this is due to C&C dropping some lower margin lines of business, rather than experiencing any underlying problems in its core business," he added.
Shares in C&C closed up yesterday at €3.39.
- Peter Flanagan
Irish Independent
