Financial crisis sees Bulmers' new products 'under review'
Bulmers has placed its entire new product development programme (NPD) "under review" as the company looks to concentrate on its core beer and cider business.
In light of the company's dire financial crisis, Bulmers is contemplating the withdrawal of Bambao, the Brazilian premium packaged spirit launched only three months ago.
A Bulmers spokesperson confirmed that the launch of Bambao had met with a lukewarm reaction from the trade. He said: "Bambao has not performed as well as we had hoped. As a result of the current problems at Bulmers the whole of our innovation and NPD programme is under review, as is the business generally.
"We all know that the introduction of new products into a highly competitive marketplace is always a risk.
"Given time, Bambao could no doubt be successful but Bulmers, in its current financial difficulties, is not really in a position to take risks."
Despite this new cautious approach, Bulmers intends to press ahead with the launch of Storm, an innovative PPS concept that uses a widget due for release in the New Year. "Bulmers is evaluating each of its innovation products and we believe Storm has a role in the long-term future of the company," added the spokesperson.
Bulmers has encountered mixed fortunes in its expansion into other areas of the on-trade drinks market.
Earlier this year, Bulmers scrapped its cider and ginger PPS concept Strongbow Spice less than 12 months after it was released into pubs and bars.
However, the launch of Sidekick - a packaged range of Schnapps-based down in one drinks - has been one of the most successful new product ideas in recent years and has spurned a number of copycat products.
"There are lots of drinks companies who would love to have our success, but right now we're not in a position to over-stretch ourselves.
"We won't be withdrawing support market support for our key brands. As Bulmers moves forward, it intends to concentrate on the core business of beer and cider in the run-up to Christmas with brands such as Strongbow, growing at 13 per cent per annum, and San Miguel, up 46 per cent."
In September, shares plummeted following the revelation of a £3.3m vacuum in Bulmers accounts. At the time of writing, shares in Bulmers stood at a lowly 114p. Ten months ago, before the company issued the first of five profits warnings, the shares were worth more than 400p.
Related articles:
Bulmers downgrades profit forecasts (14 October 2002)
Bulmer fires finance chief over £3.8m hidden costs (1 October 2002)
Bulmer boss falls on sword (12 September 2002)
Bulmers uncovers £3.3m black hole in accounts (10 September 2002)
Bulmers faces challenge targeting young males with new PPS (14 May 2002)
Strongbow spices up FAB market with new product (30 August 2001)
Kick-off for range of schnapps shots (2 October 2000)
