On-trade

Cider down 6% in on-trade

Pre-tax profits at the C&C Group rose 16 per cent to €106.1 million before exceptional items in the year to 29th February despite a turnover down seven per cent to €716.7 million (€480.8m net of excise) according to its Financial Results published recently.

Net revenue for the year was down 5.7 per cent.

Bulmers cider witnessed a 3.3 per cent decline in sales volumes during the year from 517.8 kHL to 500.7 kHL while its Magners brand surged 5.3 per cent to 992 kHL from 2011’s 943 kHL figure, delivering strong volume and value growth for the company. In the increasingly competitive GB cider market with Magners volume grew 2.8 per cent with a slight increase in revenue.

Overall, Magners exports from Clonmel grew 28.3 per cent, principally driven by the North American and Australian markets.
Irish cider revenues declined seven per cent, from €136.4 million last year to €126.8 million in the year to the end of February this year.

According to the C&C Group, “The last 12 months have seen Long Alcoholic Drinks  volumes in RoI fall by one per cent year-on-year.

“As with the prior year, the swing of consumption from on-trade to off-trade continues with Nielsen/CGA reporting positive growth of seven per cent in LAD off-trade volumes and a decline of six per cent in on-trade volumes. Home consumption in RoI now accounts for 44 per cent of total consumption, up from 41 per cent in the prior financial year. The pricing differential and increasing levels of promotional activity in the off-trade remain a key factor in this accelerated channel switch, a deflationary trend that we expect to continue over the next few years. On an aggregate level, pricing in LAD off-trade fell by seven per cent in the year while on-trade pricing remained relatively flat.

”Despite the deflationary headwinds in the off-trade, operating profits in RoI remained relatively stable for the third year in succession at €44.4 million. Cider RoI delivered operating profit of €42.2 million while operating profit from the Group’s beer portfolio increased to €2.2 million.”

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