Cider sales see Beamish sales go flat

SCOTTISH & Newcastle Plc, the biggest brewers in Britain and owners of Beamish and Crawford, posted flat 2003 profits yesterday.

Cork-based Beamish and Crawford had to contend with a fall of 6.2% in the entire beer and cider market in the Republic of Ireland.

Sales of all beer and cider brands in pubs fell by almost 9%, but the off licence trade, which accounts for 15% of the overall market, grew by 11.5%, with lager in particular up 17%.

The fall in beer sales has prompted rival brewer Guinness UDV Ireland to postpone a planned 6 cent a pint increase until June because of concerns the ban on smoking in bars, from March 29, will drive beer sales even lower. Beamish & Crawford managing director Alf Smiddy said like all other players in the Irish industry, the firm was not immune to the severe market conditions.

“Miller Genuine Draft enjoyed a very successful year in 2003, achieving record growth. And Foster’s had a very strong year in the growing off-trade market.

“Beamish performed in line with the market, and the company remains confident it offers unrivalled opportunity,” he said.

The company said it continued to invest significantly in its Cork brewing facility over the last 12 months, with the highlight being the investment of €7million in the installation of a new bottling line last year.

S&N plans extensive cost cutting in Britain to free up extra cash, which it will use to promote key brands.

S&N posted 2003 pre-tax profit of £471m, up from £467m in 2002.

S&N aims to make £45m of annual savings, cutting its British cost base by a quarter, but has pushed the target date to 2006. It expects to feed up to £30m of the savings back into driving revenue higher through higher marketing spending.

As part of this cost cutting drive, the firm said last week it was closing its 150-year old Edinburgh brewery with the loss of 170 jobs.