C&C and Gaymer adjust to the demands of cider drinkers

C&C Group, the owners of Magners Cider, have reported a further squeeze on sales of Magners. Meanwhile, Gaymer Cider Company is releasing Natch on draught to counteract a mixed response the sweeter incarnation of Blackthorn cider.

C&C said that its Magners sales were down 18.7% in the 12 months to the end of February, with its market share of the UK cider market falling by 5.1% to 15.2%. The Irish company attributed the drop in sales to the economic climate, the bad summer of 2008 and a general shift from the on-trade to the off-trade. Magners is particularly vulnerable to this last factor because of the way Magners appeal lies in its over-ice serving. The strengthening of the Euro against the pound has also affected its cost competitiveness.

C&Cs overall turnover was down 11% in the 12 month period and it says that its trading, in the 10 weeks since then, has been flat, in terms of revenues. It is planning to adjust to the challenging times by reducing its capital spending and employing more effective marketing. C&C is currently running a billboard campaign for its Magners pear cider.

Meanwhile, Gaymer Cider Company is counteracting a somewhat sour response to its sweeter version of Blackthorn. In March, Gaymer relaunched Blackthorn with a sweeter flavour and a fall in abv from 4.7%. The negative responses ranged from drinkers abandoning the brand to reports of posters being defaced in Bristol. In response, Gaymer is branching out its extra dry cider, Natch, from being just a packaged product to one that’s available on draught. The company says that Natch already has a loyal following in Bristol and that its overall popularity has been growing.

12 May 2009