Heatwave boosts Bulmers and Magners sales

C&C today said cider sales were ahead of hopes after the summer heatwave and a new version of its leading drink boosted demand.

C&C said the launch of Bulmers Pear (Magners Pear outside Ireland) had gone well and contributed to a 4% decline in cider volumes in Britain in the four months to June 30.

This figure was ahead of plan, but Dublin-based C&C admitted it was still losing share in a growing market.

It has been battling to improve its performance after sales slumped last year and the firm failed to convert “the strong brand equity in Magners” into improved market performance.

The company said the past four months of “encouraging” trading meant it now had greater confidence in its plans for the current year. It said it will commit up to an additional €8m behind its cider brands in Ireland and Britain.

The progress in cider was offset by the performance of its spirits and liqueurs division, which has been affected by difficult trading conditions and significant de-stocking by trade customers.

Operating profits in this division – best known for Tullamore Dew Irish whiskey and Carolans Irish Cream – are expected to decline by as much as a third in the current financial year.