Blog: C&C - stuck in a season
Olly Wehring | 16 July 2007
Well, that's that cleared up, then. When it comes to seasonality, the UK drinks consumer is not one for bucking trends.
Late last week, C&C, the Irish company behind the wildly successful Magners cider brand, issued a profit warning for its full-year. The group pointed in part to the relatively poor weather in the UK in June and July, as well as an increase in price competition from the likes of Scottish & Newcastle.
Despite a relatively healthy rise in C&C's cider volumes in the first three months of this year (up by 38% year-on-year), the importance of the second quarter for cider cannot be overstated. Think of summer, think of cider, as the traditional viewpoint believes. And with rain and no major sporting event to focus on, the Great British summer this year really has been nothing to write home about.
At the same time, C&C has tried it hardest to 'de-seasonalise' the offering. This profit warning, however, suggests that that approach hasn't been all too successful. Indeed, if summer can't produce the goods for cider companies, wither the rest of the year.
It's the same problem faced by categories such as Sherry and cream liqueurs - most notably Bailey's of course - who live and die by Christmas trading. They have been trying to alter the UK consumers' perception of what should be drunk at which time of year for years now, with little effect.
C&C is now expecting zero growth this year. A poor summer does not bode well for the rest of the year for C&C, it seems.
For those people looking to the Red Planet as shining utopia away from all things earth, look away now....
Bacardi's 42 Below vodka brand has found a novel way to use the lemons left over from cocktail-making: Turn them into liquid soap....
Philadelphia’s soda tax came into force on Sunday, and is reportedly causing a stir in the city's check-out aisles....
Earlier this month, I was most-kindly invited by Accolade Wines to visit the Royal Albert Hall in London. The reason? They wanted to see a tennis great in action, and then give them a guided tour thro...
- Most Valuable Spirits Brands in 2017 - The facts
- Most Valuable Beer Brands in 2017 - The facts
- Diageo Africa president O'Keeffe on beer & spirits
- Travel Retail needs a disruptor - Comment
- What the future looks like for Australian wine
- Diageo ready to lock horns with AB InBev in Africa
- Heineken sees Tesco pull SKUs in UK
- Coca-Cola Co announces senior executive shake-up
- Fever-Tree eyes bumper NPD, pack formats for 2017
- Heineken mulls M&A with $1.75bn notes issue
- Central and East Europe Report Package
- Battle of the Generations - The fight for iGen, Millennial, Gen X and Baby Boomer consumers
- Global vodka insights - market forecasts, product innovation and consumer trends
- Global Scotch insights - market forecasts, product innovation and consumer trends
- Global liqueurs insights - market forecasts, product innovation and consumer trends research