Magners' share of UK cider market falls
Magners producer C&C Group said its share of the UK cider market fell by three percentage points in volume terms last year and the market was getting worse.
The decline was due to a combination of factors, C&C said today in a trading statement.
Primarily last year's poor summer weather in the UK hit sales, while the "rapid economic deterioration and the resulting impact on consumer confidence" had been "challenging" for the group, as well as a weakening sterling against the Euro.
"Market conditions in the UK are, if anything, getting worse and increased price sensitivity by consumers plainly presents risk to our premium brand portfolio," the group added.
C&C, which last year named ex-Scottish & Newcastle boss John Dunsmore as its chief executive, said overall turnover for the year to February 28, 2009, was expected to be down 13 per cent on 2008, which itself witnessed sales more than eight per cent lower on the previous year.
Operating profits for 2009 were expected to "in line" with estimates given in January this year, at around €90m (£80m).
Cider sales in the UK were expected to grow, C&C said, but it anticipated its own volume share would dip by three percentage points.
Meanwhile the group said overall operating profits in its spirits and liqueurs division would be in line with last year, when the figure was €15.8m (£14m).
C&C said it was taking action to reduce its cost base, with its executive structure the subject of "streamlining" and 120 jobs to go at the group's Irish-based operations.
Marketing was meanwhile being re-aligned with the group's commercial department in Ireland and the UK, and management of cider exports to the rest of the world was to come under the leadership of the head of its spirits and liqueurs division.
Dunsmore said the next 12 months would see the business "make major progress on cost competitiveness and move to make the business leaner and faster to react to market-led changes".
C&C will announce its full year results on May 12, 2009.
