Cider sales stabilise after summer surge
CIDER sales appear to have begun to stabilise and are now in line with the beer market, new figures show.
This news will have particular significance for drinks company C&C, which relies on its Bulmers cider (Magners in the UK) for the majority of its revenue as well as the Gaymers and Olde English cider brands.
The latest data from the Revenue Commissioners shows that excise tax collected on cider in the first six months of 2010 was down by 22pc on a cumulative basis from 2009, and now match a similar decline in beer.
Clearances of cider in the Irish market in June were down 9.7pc on a year ago, while July net-excise receipts were off 30.7pc.
Most of that, however, was due to the reduction in excise duty rates by the Government.
Paul Meade of NCB stockbrokers said that the data for cider had improved over the summer but added that the beer market was continuing to contract.
"The monthly changes show significant improvement through the summer period, suggesting consumption benefited from lower prices, warmer weather and the staging of large sporting events in the period," he said.
In contrast, "beer excise tax is also down by 22pc on a cumulative basis but its monthly performance reflects a deteriorating trend over the summer period suggesting market share loss," he added.
Liam Igoe of Goodbody stockbrokers said the figures reinforced the struggles in the sector but warned against putting too much emphasis on short-term figures.