Shares in C&C continued their recent declines yesterday, falling a further 3.5 per cent, after new figures showed the drinks group had lost yet more market share in the UK.
In the four weeks to November 3rd, C&C's trademark Magners cider accounted for 7.3 per cent of off-trade UK cider sales - that is sales outside of pubs and bars, according to AC Nielsen data released late on Friday. This compares with 9.1 per cent in the four weeks to the start of September. Its share of the off-trade long alcoholic drink market fell to 1.2 per cent, from 1.5 per cent.
In a note, Merrion analysts Robert Brisbourne and Sam Farthing said that while the AC Nielsen data can be volatile in the short term, these figures are weak.
"Given the poor summer we had hoped there would not be a significant market share decline so early in the winter and it is a concern in case market share decline continues and also to the extent that it might be a lead indicator for the on-trade," they said.
Mr Brisbourne and Mr Farthing also noted that a "significant improvement" will be needed in order for C&C to meet its guidance for a high single digit decline in overall cider revenues in the second half of the current financial year.
The Dublin-based company was forced to issue two profit warnings in July after sales of Magners, or Bulmers as it is known in Ireland, slowed significantly. C&C has blamed the slowdown on the wet summer but also on increased competition from rival Scottish & Newcastle.
Separately yesterday analysts at JP Morgan cut their price target for C&C's shares to €5.10 from €5.70.
The shares, which have lost a third of their value since hitting a peak of just over €14 in January, closed down 15 cent, at €4.18 after yesterday.
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