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THE C&C GROUP, the company behind Bulmers cider, hasn’t lost confidence in its key brands despite big slides in sales last year.
The company’s income from the top-selling cider brand in Ireland dropped 7.5% over the 12 months to the end of February, while in the UK its Magners label suffered an even heavier fall.
The decline in C&C’s Irish business came after what it described as the one-off effect of an “exceptional” summer on Irish cider sales in 2013.
However the company said it had been spending up on marketing and its “not a moment too soon” campaign had “resonated exceptionally well” with its target audience.
In England and Wales, it plans to cut costs for its Magners business after sales of the cider brand plunged 14.1% by volume.
Consumer affinity for the brand remained strong with the brand regaining number one in premium apple cider in the off-trade,” the company said. “However, economically the existing business model is not tenable.”
The bigger picture
Overall, the company reported its total operating profit was down 9.2% to €115 million despite net revenue going up 10.3% to almost €684 million for the year.
Scotland, where C&C sells Tennent’s Lager among other brands, was one of the star performers with net revenue up a massive 61%.
That was despite the “challenging” trading conditions for the last three months of the financial year after the introduction of stricter drink-driving rules.
C&C CEO Stephen Glancey said the company’s core businesses in Ireland and Scotland – which delivered the vast majority of profits – had delivered “modest” growth in the year.
We continued to make progress towards our objective of building leading brand-led distribution businesses in both of these regions,” he said. “This model reinforces the sustainability of our earnings and cash generation capability which, in turn, drives our ability to create and sustain value for shareholders.”
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I thought last year was very sunny, a warm summer overall. Perhaps C&C might look at it’s pricing as a reason for it’s brands performing poorly?
Wait till they get their water bill !
Last year was one of the sunniest on record here – I can’t figure out that headline …
Orchard Thieves hitting the market is also likely to eat into its market share.
The sun was as good last year if not better then 2013. I think €5 for a bottle is the issue.
The issue is that all the pubs are closing …. no points of sale with craic then alcohol is such a demonic waste of time !
You’ll pay a fiver for a longneck but maybe €6 for a large bottle. I can’t understand people buying longnecks when you can get double the amount for an extra euro or so. People need to be smarter with their money. A bummers is a lovely drink in the summertime but don’t over indulge. Very rough hangover from it.
Bulmers Cider was possibly the most popular and well known brand of cider in the Irish market for a long long time,
But with it`s popularity came a price, It has been priced out of the reach of most people who like what originally was a simple drink.
Now averaging @ 5.50 – 6.50 per pint bottle, it has clearly gone away from being the working mans summer tipple.
My local bar (neighbourhood bar) is at the 5.50 per pint bottle price, I can only imagine what it is in the likes of the city centre.
This is the reason for the drop in sales, nothing to do with the weather or whatever C&C would have us believe.
A friend iof mine stayed drinking bulmers until he got a bit of an ulcer – He drinks guinness – sorry Diageo now – you know it the black French stuff they make in Dublin !
herpes – humour doesn’t work for you, remember?
and french? diageo is a uk company, created by the guinness and grand metropolitan merger in 1997.
So the brits own Guinness – no wonder you’re out to bat for them William ….
Tell derbylight the missus has given the redlight on me finding out it’s name ….
I shall of course be using two channels !
laugh at that !
Ryan. Bernie is better – scratching less?
Dear Bulmers,
I hear on the journal that ye have a problem with no one drinking your cider due to the sh*te weather. I’m willing to help. Simply send a couple of crates to me and I personally guarantee that no bottle shall be left standing.
Yours sincerely,
Spidey
Have people really stopped drinking cider, or have they just switched to the eight billion other superior or cheaper or interest ciders that have come out over the last few years?
*interesting
Are C&C just changing the date on the reports? It’s the same line each year.
Step 1 – Drink Cider (it tastes like Cidona)
Step 2 – Force your tastebuds to like other alcoholic beverages.
Step 3 – Remember the good auld days of drinking cider.
Sober up Ken – soon…
What’ll ya have? Hic!
I have a drinking problem. I love Bulmers but I can’t afford to drink it.
Its the price lads not the weather. I wont pay over a fiver for a pint of anything which means il eventually have to drink that Protestant stuff from Dublin exclusively.
Had some McIvors Cider recently and oddly enough it tasted like apples, unlike the orange slops that Bulmers peddle.
The cheap aldi and lidl ciders are selling well, must be a price thing.
I just want to record my highest commendation to Mr. Denis O’Brien (since I can’t comment on any thread actually associated with him). A man who has the courage to take up the cudgels on behalf of an embattled minority – i.e., the ten per cent or so who are billionaires – someone has to speak up on behalf of these unfortunates and it gives me special pride to know that their champion hails from our own Island. Well done, DOB.
Might be due to their adverts. They always show people drinking outside at bbq with ice.
Surely they’re taking a hammering from your Rekorderlings and Brothers ciders or whatever they’re called.
Price is too high simple as. Bulmers cider year s ago was a cheep wino s drink or summer drink for normal folk. Now they charge 5 euro if your lucky I got charged 6.50 once.
BS alert…. Weather was pretty good in 2014
Bulmers is utter shite, thats why sales are down. Orchard thieves is not a bad alternative for a mainstream cider.Instead try Stonewell cider
Bulmers is horrible sugary shit.
Dan Kelly’s is a vastly superior product in my opinion
I enjoy drinking cider 4 times a year Spring,Summer,Autumn, and Winter.
Stonewell Craft Irish Cider now that’s real Irish Cider .
Cheers
Orchard thieves the new cider………..
fresh
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