Sales of C&C Group’s Magners cider in UK bars slumped by almost a third in March from the same month last year, Goodbody Stockbrokers said, citing data from research company ACNielsen.
The figures for the so-called on-trade business declined 32 per cent in March after a 25 percent decline in February, Liam Igoe, an analyst at Dublin-based Goodbody, said today in a note. Mr Igoe has a "buy" rating on the stock.
C&C introduced Magners in Britain in 2004, marketing it as a premium product served over ice, Now, Dublin-based C&C is facing increasing competition from Scottish & Newcastle's Bulmers, Goodbody said.
"The key months remain June to August, but clearly, S&N is continuing to maximize their penetration of the market ahead of these key summer months," Mr Igoe said.
C&C shares fell 4 cents, or 0.8 per cent, to €5.24 as of 8.56am in Dublin, cutting the company's market value to €1.64 billion ($2.5 billion).
Bloomberg