Goodbody: Heineken Cider Market Entry Could Threaten C&C's Position
Published on Apr 8 2015 8:07 AM
Liam Igoe of Goodbody Stockbrokers has said that Heineken's decision to enter the cider market here could impact C&C Group's profits, particularly at its Bulmers division.
Igoe said that "the introduction of a new brand into Ireland, with a fairly hefty budget, threatens to undermine solid progress with Bulmers profit in recent years.
"Bulmers accounts for a third of Group profits and we estimate will have seen a 9% rise in profits between FY13-FY15, despite the difficult consumer backdrop."
His comments follow the news last week that C&C may be considering selling its underperforming England and Wales division.
According to New York-based fund manager Third Avenue Management, which recently bought a stake in C&C, possible solutions to its UK difficulties "could take several shapes, including an acquisition, a partnership or a divestiture of the UK business altogether."
Yesterday, Bulmers announced the launch of a new advertising campaign, featuring the message ‘Not a Moment Too Soon’. A seven figure investment will see the campaign roll-out across TV, radio, digital, outdoor and below-the-line.
Heineken announced last month that it is to launching a new cider to the market, revealing the details on May 1, which is reportedly going to be called 'Orchard Thieves'.
© 2015 - Checkout Magazine by Stephen Wynne-Jones