Magners must change tack

Park-bench drinkers in Ireland must have been chinking their bottles in Tesco's honour when it recently launched a buy-one-get-one-free bonanza on Magners.

It's a step back for the image of the cider industry, which thought the days of being sold as cheap hooch were gone. And it could not have come at a worse time for owner the C&C Group after it announced sales were down 45%, leading to two profit warnings. Every producer will tell you that sales have been battered by the bad weather, but Magners' biggest blow has been dealt by Bulmers.

Meeting Magners' marketing boss around the time of Bulmers' roll-out, he was hopeful the brand had built up enough consumer loyalty to ensure Magners remained the cider of choice. But the inroads S&NUK has made with Bulmers have caused a serious dent. The cider drinkers I know don't understand the difference between the products, which is a major issue for Magners. If they are seen as interchangeable, why should licensees pay C&C's higher prices, especially if they can make better margins elsewhere?

Buyers complain about C&C's apparent unwillingness to support pubs with promotional kits and giveaways - even though they gave Magners its big break. The opposite is said of S&N, who can sell pubs a full range of products, putting together attractive packages. Now, it's giving the trade something new to play with as it takes Bulmers over ice into draught territory. Whether the technology holds up is another matter - staff in the pub where I saw it in action were frantically trying to work out why it was not dispensing ice with the liquid. Teething problems are to be expected, what's important is that Bulmers got in there first.

C&C has aggressively advertised Magners as the pace of its march into pubs quickened, but it's time for a rethink. Explaining exactly why C&C believe it is a better cider must be the next step.