Shares in C&C up 8% after survey shows sales of Bulmers pear cider exceeding expectations

SHARES in drinks group, C&C rose by nearly 8% – or 15c – yesterday to €2.05 after an independent survey of Irish publicans showed that early take up of its new pear cider product has been strong.

The survey – of around 3% of Ireland’s total pub network – was conducted by Davy Stockbrokers and found that the new Bulmers Pear product is currently ahead of expectations in the Irish on-trade marketplace.

Of particular relevance is that sales of the new product have not “cannibalised” sales of the traditional apple- flavoured Bulmers cider.

It also states that, against common perception, sales of the pear version have not been driven by females, but popularity is of a gender neutral footing.

The survey comes towards the end of a rollercoaster week for C&C.

Last week, the group gave a rare upbeat trading update saying that revenue was up by 3% for the first four months of its current financial year, only to come back on Monday of this week with a significant correction of those figures showing a 5% fall in group sales and a 6% fall in cider sales. Those revised figures wiped 16% off the group’s share value on Monday.

“Our survey highlights that the launch of Pear is ahead of expectations. It has made strong distribution gains and has recruited new drinkers. Pear has helped drive Bulmers’ strong volume performance – up by 4% in the four months to the end of June – in a challenging Irish drinks market, which is down some 8%-10%,” Davy said yesterday in its report.

It added: “Our findings reveal that the roll-out of Pear has been as successful in Ireland as in Britain. Approximately 95% of pubs contacted now stock Bulmers Pear, with over 55% of respondents stating that initial sales were better than expected.”

In its “first” trading update of last week, C&C’s new management team said the group should report an operating profit “at the top end” of its previously stated guidance of between €77m and €82m for its current financial year up to the end of February.