Irish cider maker C&C Group which is trying to revive sales under its Magners brand has experienced no “major recovery” in demand for the beverage in U.K. pubs and bars this year, according to a briefing note from Merrion Capital.
Half of 208 pubs selling Magners said sales were unchanged since March, while 43 per cent reported an increase, Dublin-based Merrion said today in a research report, citing a pub survey.
Some 6.5 per cent of respondents said sales were unchanged.
The figures are "in line with normal seasonal trends" Gavin Kelleher, an analyst at Merrion, said in the report.
"There is, as yet, no evidence to suggest a significant recovery in Magners on-trade volumes in the current year," he said in reference to pub and bar sales of the beverage.
Merrion has a "hold" recommendation on C&C shares, which slid 70 per cent last year as record rainfall hurt cider demand and Scottish & Newcastle, owner of the Strongbow brand, introduced competing varieties.
At 8.30am C&C shares were trading marginally ahead in Dublin at €5.19.
Bloomberg