C&C sees Magners lose further market share in Britain

MAGNERS cider, owned by Clonmel-based C&C, lost further market share and distribution last month in Britain.

According to data from ACNielsen, Magners’ share of the off-trade cider market in Britain declined to 6% last month compared to 10% in December and 8% in January last year.

C&C’s Magners cider is the source of almost three-quarters of the beverage maker’s revenue, according to Davy Stockbrokers, who added that the brand’s distribution fell to 85% last month compared to 91% in December.

Goodbody analyst Liam Igoe said the off-trade data for January was weak for C&C, even allowing for the normal seasonal movements — January is the weakest month of the year and December one of the strongest.

Davy said there were large shifts in the cider market last month with Scottish & Newcastle’s total share falling by 8% over the month to 42% in January, while Gaymers increased its share to 15%.

A spokesman for C&C said yesterday that the company is focusing on returning growth in the British market this year with a mixture of investments in head count, advertising and marketing and deals with retailers and pubs.

C&C recently hired John Holberry from Coors Brewers to revive its cider unit in Britain, where sales of the drink dropped last summer amid wet weather and increased competition.

The company’s stock plunged 70% last year as the rainiest British summer on record depressed demand for drinks and Scottish & Newcastle, Britain’s largest brewer, introduced competing ciders.

C&C’s shares soared in 2006 after it promoted Magners to Britons as a warm-weather drink served over ice.

The C&C spokesman also said there are no short-term plans to re-identify the Bulmers brand in Ireland as Magners cider.

He said Bulmers is so successful in Ireland that C&C would have to consider a re-brand very carefully but as of yet there are no plans for an identity change.