Tennent’s shines as cider slides

A STRONG performance by Tennent’s helped offset poor Magners sales, owner C&C Group confirmed as it posted half-year results last week.

The Dublin-based firm said this summer’s Olympics and European Championships had “failed to deliver any volume uplift” for its cider business in the UK, as it reported an 18.6% drop in the volume of cider sold in the six months to the end of August; revenues in its UK cider business slid 18.4% in the period.
The volume of Magners sold in the UK was down 17.4% in the six months, although Magners Golden Draught continued to grow in the on-trade, with volumes up 17%.
C&C’s Gaymers cider portfolio, which includes Gaymers Original, Blackthorn and Olde English, saw a 20.4% drop in volumes in the period.
The drop in cider sales was offset by a “strong” performance by Tennent’s in the UK, which saw revenues climb 2.2%; a 6.3% volume decline across the UK was said to be “largely due to the off-trade channel”.
In the Scottish on-trade, the volume of Tennent’s Lager sold was up 3% in the six months, while Caledonia Best is said to have performed well, achieving rate of sale and distribution levels “ahead of expectation” since its launch last year.
Overall, C&C Group saw net revenues drop 2% to 263.4m in the six months, with operating profit before exceptional items down 2.7% to 65.6m.
“In the short term, we are delighted to confirm a resilient performance in tough markets at the same time as laying some exciting foundations for accelerated international growth,” said chief executive Stephen Glancey.