Summer drives up cider sales

In a trading update for the four months ended 30 June, the company said sales were ahead of expectations. Revenues for this period were 3% up year-on-year, a performance that reflected an increase in revenue of 3% within the cider business and a decline in revenue of 12% in its niche spirits & liqueurs business. C&C said that while the overall business environment was challenging, particularly in Ireland, the group's cider business had benefited from a period of good summer weather and a successful launch for Bulmers pear cider in the Republic of Ireland and Magners pear cider in Great Britain and Northern Ireland. The performance of the spirits & liqueurs business, however, had been adversely affected by difficult trading conditions and significant de-stocking and this was likely to see profits for this division declining by as much as a third. The Group's re-organisation and re-structuring programme - set to save €5m - at its Clonmel facility in Ireland's County Tipperary was progressing in line with expectations; employment terms and conditions had been modified, headcount had been reduced by 120 and a pay freeze had been implemented.