Cider maker Bulmers has issued a profit warning due to the continued disappointing performance of its international business.
The company said it now expects its pretax profit before goodwill and exceptional items for the year to April to be £22 million sterling to £24 million.
The most significant decline in sales has been in the US, where volumes of the Cider Jack brand have continued to fall. The company said its Strongbow and Woodchuck brands continue to grow. The net effect is that the US business has continued to operate at a loss rather than the break-even level Bulmers had been forecasting.
Bulmers enjoyed a good Christmas period in the British market but has been unable to realise the full benefit of this performance as a result of continued trade de-stocking in the cash and carry sector.
This de-stocking is a consequence of a move to premium pricing in this sector.
The launch of a new product, scheduled for January, was delayed as a result a technical issue and Strongbow Spice, despite favourable consumer testing, has failed to meet expectations.