C&C profits fall amid depressed cider market

25th May 2010 08:23

Profits fell at the Irish drinks firm C&C in the year to February 28 as cashed strapped drinkers on both sides of the Irish Sea continued to lose their taste for cider.The company behind Magners posted a pre-tax profit of €82.3m before exceptional items, down from €90m the previous year. Revenues jumped to €568.8m from €514.4m, but excluding acquisitions cider volumes were down by 2.4%.During the year, C&C acquired the cider firm Gaymers and the Scottish and Northern Irish assets of the lager maker Tennents.The company, which sells its cider under the Bulmers brand in Ireland and Magners in the UK, said market conditions remain challenging in both markets. Ireland has been hit particularly hard. To try and re-capture some of the early popularity of its cider, which was launched in the UK in 1999, C&C has launched berry and pear ciders in Ireland and pear cider in the UK. It has now selling a draught drink 'Magners Golden Draught' in Scotland.Trading remains difficult. In the two months to April 30, volumes were down by 2.7% in Britain and by 1% in Ireland. It has been outperforming the still-depressed Irish market thanks to a 10% cut in the price of a bottle of Bulmers.'The group remains cautious on the macro economic outlook for both Ireland and Great Britain but is confident in its brand strengths and trading strategies,' the company said.