Bulmer's bucks trend as sales rise

SALES of Bulmer's cider grew by 4% in the six months to the end of August, outperforming the rest of the alcohol market, which has seen volumes decline because of the smoking ban and a shift to drinking at home.

C&C Group, which own Bulmer's, announced yesterday its volumes were ahead by 4% in the first half of its financial year. The pub trade market has fallen by 5% in that period.

The off-licence trade has seen volumes increase by around 12% over the same six months.

C&C chief executive Maurice Pratt said he expected Bulmer's sales to come back a bit in the second half of the year, but that it would still grow compared to a decline in the market.

Last month Diageo, the owner of Guinness and the distributor of Carlsberg, Harp, Smithwick's and Budweiser in Ireland, said its sales had fallen by 3% and that consumption of the black stuff dropped by 6%.

C&C says in the first few months after the smoking ban, the drinks market fell by 2% to 3%, but the decline had accelerated in the recent months because of the worsening weather.

Mr Pratt expects that over the winter the market will decline by "high single digits." He said that once the full-year impact of the ban was over next March, he expected the market to remain flat for the rest of 2005 and grow in 2006.

Mr Pratt says the "pint bottle of Bulmer's over ice", normally a summertime drink, was now being marketed a year-round product. He said the drink continues to be considered as a premier brand.

C&C's alcohol sales, which includes wines and spirits, rose by 8.8% in the six months to the end of August toe 226 million, while operating profits grew at the same pace to nearly €40 million. Alcohol sales account for 60% of C&C Group profits.

The company also plans to expand its cider business in Britain. Magner's, as Bulmer's is called in Britain, is available in Scotland and northern England, but the company is looking to roll out the brand in other parts of England in the coming years. Sales of Magner's now account for 20% of the group's cider sales.