The heatwave has helped put an end to Bulmers' sliding cider sales
The company behind the cider brand says World Cup fever has also boosted trade.
THE COMPANY BEHIND Bulmers has shrugged off sluggish cider sales as the heatwave and football fever take hold across Ireland.
In an update ahead of the group’s AGM today, C&C said that trading has been “positive across all key markets”, with sales boosted by the warm weather and the World Cup.
In its Irish operation, the company said that the good summer weather has helped Bulmers return to “moderate volume growth” in the year to date.
This result is consistent with the industry, as total cider volumes in Ireland rose by 2.7% in the period from March to May, according to market research provider Nielsen.
Previously, C&C said that it was struggling to sell cider in Ireland due to increased competition, disruptive winter weather and the loss of a number of wholesale accounts.
Its Irish marketing director Belinda Kelly told Fora that that the pub trade is “where the challenges are”.
Volume sales for the Bulmers brands fell by 6% in Ireland last year despite an increase in investment. The company launched the sweeter Outcider to compete with Heineken’s Orchard Thieves and also unveiled a new marketing campaign for Bulmers Original.
Revenue at C&C’s Irish operation declined by 4.4% to €312.1 million in 2017, with operating profit falling 6.7% to €40.1 million.
‘Solid start’
Analysts at Davy said that today’s trading update from C&C strikes a “cautiously optimistic tone”.
The stockbroker said that it will not make any material change to financial forecasts ahead of the summer trading months, but this “solid start” to the year provides “a margin of safety” for the drinks group.
Elsewhere in the update, C&C said that it is continuing to make progress on improving operating performance at UK wholesale business Matthew Clark Bibendum, which it acquired earlier this year.
It added that the new senior management team are “all now in post and engaged in stabilising the business”.
At today’s AGM, C&C chairman Brian Stewart will be stepping down after eight years and will be replaced by Stewart Gilliland.
