Cider market tough, says Magners producer

The cider market in Great Britain continues to be tough, according to Magners producer C&C Group, which announced a 15% decline in volumes for the three months to 30 November.

Total cider volumes fell 9% for the period on last year with a 7% decline in Ireland and an 8% increase in other markets. Total revenue for the period, excluding its recent purchase of Tennent's from AB-InBev, was down 9% on last year.

For the nine months to 30 November, total revenue declined 7% on last year excluding the impact of Tennent's. Total cider volumes were down 3% reflecting a 6% decline in Great Britain and a 7% decline in Ireland.

However, there was a glimmer of hope in December trade with total cider volumes 3% up on last year, including a 17% increase in Great Britain.

"In GB, cider sales in December benefited from late ordering from the trade, which had adversely impacted previous months' sales, particularly in the On Trade," the company said.

C&C said the integration of the Tennent's business is "progressing well" and is on track to deliver synergy benefits of £10m. Tennent's is expected to make an operating profit of €7m in 2010 —ahead of expectation.

The acquisition of Gaymer Cider Company should be complete by the end of January.

C&C also announced that it had revised its agreement with Molson-Coors to distribute Magners Draught.

C&C will now distribute draught Magners in the Scottish on-trade and to multiples in the on-trade in England and Wales. Molson Coors will continue to distribute to the free trade in England and Wales. A compensation fee of £1.75m has been agreed.