Magners Cider Sales Slip and Job Losses

Wednesday Oct 10

Irish brewer C&C, maker of Magners cider, are planning significant job cuts after its profits were decimated by the poor summer weather.

Irish brewer C&C, maker of Magners cider, are planning significant job cuts after its profits were decimated by the poor summer weather.

The cider maker had established the beverage as a premium product that's served over ice, putting it in competition with rivals such as Edinburgh-based Scottish & Newcastle's Jacques.  It would appear now that the seemingly loved beverage may indeed have been one of which is a now passing fad.

The Irish cider brand's share of the premium cider category in the off-trade grew just 4 per cent in the first half of the year, compared with the same period in 2006.

It's expected that terrible summer weather and the new found increase in competition in the premium cider category is behind the brand's slow growth, which saw volumes rise by just 2 per cent in both the on and off-trade.
A Magners spokesperson has informed the press that the company will focus on consumer marketing during the second half of its financial year to boost sales after experiencing disappointing interim results.

Maurice Pratt, group chief executive said: “The financial performance reflects a number of factors such as exceptionally poor summer weather; increased competition; and additional costs in marketing and cider manufacturing capacity.”
He later went on to say that the company would be “implementing a comprehensive restructuring and cost reduction programme” over the next year to help restore growth and boost profits.

Meanwhile C&C's rival S&N announced that it was launching an extension of its Bulmers brand with a new pear variety, Bulmers Pear Cider. It is planning an extensive advertising campaign next year, aimed at 25-34 year-olds as an alternative to beer, wine and apple cider.