“The performance of cider was buoyed not only by better weather, but through new product development helping to expand the category and bring in new millennial consumers,” the company stated as new entrants brought new consumers to the category.
In an LAD category up 5% Bulmers’ RoI sales were also up 5% in H1 while those of Magners rose 1.8% in the UK LAD market.
However profits flatlined despite the uplift in volumes with Operating Profits up just 0.1% on a 0.8% fall in net revenues.
Packaged product accounts for 71% (MAT to June 16) of the total on-trade cider market (comprising 11% draught and 29% on-trade packaged) and Bulmers retains an 89% share in this key category.
At 29% on-trade packaged cider and off-trade sales volumes (60%) remained the dominant channel in the 12 months MAT to June this year, holding an 89% share of the cider market, stated the company whose share of the packaged cider market stood at 91% MAT to June 2015.
Within the off-trade, Bulmers increased its share from 49% to 51% MAT to June 2016 while its share of the on-trade draught cider market fell from 92% MAT June 2015 to 78% MAT June 2016.
The focus will now be on draught stated the company. Draught cider holds 11% of the total cider category by channel.
Total RoI volumes at C&C fell 4.1% to 899,800 Hectolitres from 938,400 Hl. Within this Bulmers’ volume sales increased 6.4% from 215,800 Hectlitres in H1 last year to 229,700 Hl this H1.
C&C’s RoI revenues fell 2.2% to €186.7 million with net revenue marked down 3.7% to €133.1 million from €138.2 million in H1 2015.
Overall RoI Operating Profit for C&C rose slightly by 0.3% to €29.8 million against 2015’s H1 figure of €29.7 million.
Ireland’s in line with the H1 trends, according to the company which saw net revenues at C&C Group fall 6.7% to €307 million on a constant currency basis and once revenues had been adjusted to take account of the establishment of the Pabst distributorship agreement.
This resulted in a 7.9% drop in Operating Profits to €55.1 million.
Exports grew 10% in volume and now comprise 4% of Group volumes.
However performance was also affected by a fall in the Sterling following the Brexit vote.