Cider launch sparks S&N counter-attack

C&C’S plans to launch Magners cider in Britain has opened the Irish company to a counter-attack from British brewing giant Scottish & Newcastle (S&N), which plans retaliation by launching Strongbow draught cider in Irish pubs.

C&C’s Bulmers cider has 95% of the Irish market and S&N hope to take about 20% of this from the Clonmel-based cider maker.

S&N’s Irish subsidiary Beamish & Crawford managing director Alf Smiddy said it is looking at a possible launch of a draft cider within the next 18 months.

“We believe there is a share of 10% to 20% to be had in the market, and we have all the expertise in cider from a group perspective,” he said.

S&N is the leading draught cider supplier to British pubs through its Strongbow brand, which is also supplied into the Irish off-licence trade.

NCB stockbrokers analyst Paul Meade believes S&N’s aggressive pursuit of the Irish draught cider market has more to do with countering C&C’s plans to launch its Magners pint bottle over ice offering in British pubs.

Mr Meade said S&N fears a repetition of the success of the Magners product in Scotland and in the North.

“This sabre rattling we believe is a coded warning to C&C that they may face a turf war on the home front if S&N UK cider sales suffer from the roll out of Magners in the UK. Previous attempts to launch competing draught cider products in Ireland to stem the success of Bulmers all failed despite well supported marketing spends,” Mr Meade said in a note to clients yesterday.

Mr Smiddy dismissed the notion the company was engaged in sabre rattling and stressed S&N was simply leveraging the cider brands it acquired when it purchased HP Bulmer in Britain 18 months ago.

He said Beamish and Crawford is looking at S&N’s extensive portfolio of brands, particularly premium beers.