Heineken lager boosts turnover at Murphy's

Increased exports and sales of lager in the domestic market pushed Murphy Brewery Ireland turnover to record levels, the company said yesterday. Murphy's stout reached 5.5 per cent of the Republic's market, its highest level to date, the Cork-based firm added.

The company's new managing director, Mr Padraic Liston, said 1998 represented "a record year, with strong growth across all brands".

Turnover reached £177 million (€225 million), a rise of 15.5 per cent. Total volume increased 5 per cent, compared with industry growth of just 1.5 per cent, he added.

Overall market share rose to 17.5 per cent, compared with 17 per cent in 1997. The company's best performing product was Heineken lager, which increased sales by 5 per cent in a sector that grew at 3 per cent, Mr Liston said.

"Heineken reinforced its number one position for lager. Two pints of lager in every five drunk in Ireland is Heineken," he added.

The beer industry as a whole was worth more than £2 billion and was being driven by a buoyant economy, he added. Within this, lager was growing at the expense of stout. Lager now accounts for 44 per cent of the market, while stout is at 48 per cent.

Lager had already surpassed stout for revenue generation and, within a year or two, would be selling more by volume, he said. The company said it planned to spend a further £10 million this year strengthening the brand and would continue its sponsorship of sporting events and music festivals.

Murphy's draught stout secured a market share of 5.5 per cent across the Republic, Mr Liston said, its highest penetration to date. While market share for the stout reached 27 per cent in the "home territory" of Cork city and county, the company continued to have difficulties expanding in Dublin and other parts of the State.

The company said its other two brands, Amstel lager and Coors Light, continued to grow from a small base.

The company said its international sales grew by 16 per cent, with western Europe up 19 per cent. During 1998, the company opened 27 new Murphy's Irish Pubs, including one in Kazakhstan and another in Bulgaria. Local market projects saw a further 11 Irish pubs in the Netherlands, 10 in Italy and 10 in Spain.