Magners sales down 45 per cent in July

THE FULL extent of the UK decline of Magners was revealed this week when Irish brand owner C&C Group conceded year-on-year volume sales in July had slumped by 45 per cent.

Last month C&C issued two profits warnings, telling investors trading had "deteriorated at an unexpected rate" in the second half of July as it grappled with bad weather and heightened competition from rival brands.

However, the precise scale of the brand's volume decline was worse than observers had feared. C&C declined to comment on Magners' UK retail sales for July.

"C&C has already highlighted the problems it was facing in its outlook statement issued last month, due to bad weather and competition," said a spokeswoman for the group, who confirmed the level of the decline.

There would be a knock-on effect into August, while the downturn has "emphasised the correlation between hot weather and cider drinking", added the spokeswoman. She said "seasoned drinkers" were consuming less and newcomers to the product were being put off by the bad weather.

C&C was working on improving its position "month by month", despite increased competitive pressure from Scottish & Newcastle (S&N) - which owns the Bulmers cider brand in the UK - and was committed to areas such as marketing spend. The group might also look to alter the tone of its advertising, focusing less on drinking Magners outdoors in sunny weather.

"The group is not where it hoped it would be in its projected growth cycle, but it has affirmed its commitment to the brand and feels no threat from the likes of S&N. There'll be no knee jerk reaction to what has been a four-month blip," she said.

Meanwhile, in the Republic of Ireland, Tesco is understood to have started selling Magners in pint bottles. Observers noted that the retailer will be buying stock on the 'grey' market, as C&C does not distribute the brand in its home territory.

C&C, whose shares have halved in value since the beginning of the year to €6 (£3.60), confirmed last week it had completed the sale of its soft drinks business to Britvic.