HP Bulmer, maker of Strongbow, has issued its second profit warning in three months, blaming its failed foray into the alcopop market with Strongbow Spice.
The company also blamed a launch-delay to a much coveted packaging innovation, and ongoing losses in the US and Australia.
Drinkers have shunned Strongbow Spice (pictured), the cider maker's widely hyped alcoholic fusion of apples, cinammon, ginger and juniper.
Chief executive Mike Hughes admitted he could understand customer's dislike of Strongbow Spice. "To my taste, it's excessively ginger," he said. "But that's my funny old palate. It's not a very repeatable drink - once you've had a few bottles, you feel a little bit too gingery."
Strongbow Spice was intended to compete in the luvcrative ready-to-drink (RTD) mix arena, against market leaders Smirnoff Ice, and Bacardi Breezer.
The company said sales were strong over Christmas but customers failed to return to the drink in the new year. The alcopop market had become over-crowded. "The bad news with product innovation is that you only have a one in 10 chance of success."
The company said profits were likely to be between £22m and £24m. In a previous warning in december the company said it would match last year's £28.6m.
The drop in Strongbow Spice sales cost a 'six-figure sum' while a delay to packaging innovation cost the company more than £1m.
The top-secret development was due to be launched last month but has been delayed until the end of the year. It is thought to be along the lines of the 'widget' conceived by Guinness in the 1990s to put frothiness into canned beer.
Bulmer said it was reviewing options for its US operations, which continue to lose money despite hopes of breakeven this year.
The shares fell 71p to 352.5p on the back of the warning.