Magners cider has returned to volume growth in the UK for the first time in three years, according to C&C Group, the Dublin-headquartered group which owns the brand.
Magners volumes rose 0.7 per cent in the six months to the end of August, although C&C said UK net revenues were down nearly six per cent, due to C&C absorbing the five per cent hike in cider duty and what it called a "significant channel mix swing".
The group noted that nearly two thirds of Magners was now sold in the off-trade during the period, in line, it said, with trends across the cider category.
Operating margins in the UK cider business rose 4.5 percentage points to 27.2 per cent, thanks to lower input costs.
Tennents, which C&C acquired last year, was said to have performed well in the on-trade with a range of marketing initiatives including the first TV advertising in six years. "It continues to extend its leadership position in the lager category," said the group.
C&C said the overall contribution from the Tennent's acquisition had been encouraging in the first six months and that there were are early indications that the route to market strength in Scotland will prove to be positive for the development of Magner's.
It added the Gaymer's acquisition was also delivering to plan with an operating profit contribution of €3m (£2.6m) in the first six months of the year and good growth in the Gaymer's brand.
The group said its newly integrated commercial team had been launched as Magners GB in September, and that focus had switched from managing integration and the separation from Constellation to developing a cider portfolio strategy.
