C&C Group, the Irish cider maker and brewer, has blamed the poor weather and tough comparatives for a 21.8% fall in British volumes of its Magners brand since the start of March.
Sales declined 25.5% by value. There was also a steep decline for its Gaymers cider brand, down 21.5% by volume and 24.3% by value in Britain.
Overall British cider sales declined 21.6% by volume and 25.1% by value for the company.
C&C Group said the British long alcoholic drinks market was “weak in the first quarter”.
“Poor weather resulted in an off trade cider category that was down 26% in April against strong comparatives last year. The dip in consumption inevitably contributed to some overstocking in the supply chain and consequential pressure on retail pricing.”
The firm said the decline in Magners also reflects a “strong market share performance in the first quarter of last year”.
But C&C said: “The core cider business will see an increase in commercial support and brand activity over the next nine months and we anticipate a recovery in volume and revenue.”
Meanwhile, volumes of its Tennent’s lager brand fell 6% in the UK, although revenues increased 5.4% due to an improved price mix.
C&C said the “market’s focus on value depressed overall brand volume” in the off-trade, although the impact of improved pricing on the revenue line has been “very positive”.
In Ireland, volumes fell 1.1%, with cider down 5.4% and beer up +29.6%; Tennent’s volumes increased 47.6%. Net revenue fell 11.5%. Export volumes increased 62.9%, with revenues up 47.4%, led by success of the Hornsby’s brand.
C&C’s expects its operating profit for the financial year to be in the range of Euro112m to Euro118m.
Stephen Glancey, C&C Group chief executive, said: “Despite a challenging quarter and tough consumer backdrop, we are confident that our resilient business model and strong brand market combinations will deliver continued earnings growth for the full year and maintain our business momentum.”
