C&C cider volumes remain steady

Drinks group C&C said cider volumes remained broadly unchanged in the three months to May 31st despite the ongoing challenging trading environment in the UK and Ireland.

But gains in volume in the Bulmers brand in Ireland came at the cost of a decline in revenue, while the recently acquired Gaymers brands saw a large falloff in sales.

Bulmers volume rose 2.7 per cent but net revenue fell by 3.3 per cent.

In Britain, sales of Magners were up 14 per cent, while net revenue gained 10.1 per cent in the three-month period. C&C attributed the rise in part to a considerable amount of promotional activity in the off trade.

In Northern Ireland, Magners volume was up 1.1 per cent.

"The fine weather over a prolonged bank holiday season provided some respite from the challenging consumer and macro-economic environment in Ireland and the UK. Against this backdrop, the business delivered a robust performance in the first quarter," C&C said in a statement.

The Magners brand saw its export volume grow by 32.4 per cent, while net revenue was up 26.9 per cent. Much of the growth was in the US and Australia, C&C said.

The Gaymers brand, which C&C bought in January 2010, declined by 22.2 per cent in volume and 15 per cent in revenue. The company said the decline was due to reduced levels of activity at the lower margin end of the portfolio.

Elsewhere in C&C's product portfolio, Tennent's volume grew by 4 per cent, while net revenue gained 5.9 per cent.

The group reaffirmed its operating profit would be in the range of €108 million to €115 million for the year.

C&C said trading in June was "relatively weak" compared to the same month in 2010, with bad weather in Ireland and the UK combined with strong comparatives last year due to the World Cup contributing to the situation.

"Should there be any sustained 'seasonal upside' from the first quarter's trading, the current intention of the business is to invest further behind the Magners brand," the group said.