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Magners cider is here to stay, predicts City analyst
Cider phenomenon will not be a boom and bust product
Magners, the Irish cider brand that has kick-started the UK cider market into growth, will not be a boom and bust product, according to a City analyst.
Citigroup suggests the brand should make distribution gains, particularly in the on-trade, over the next year or so, outside of its Scotland and London strongholds.
We do not expect this to prove a boom and bust product in a way that Diamond White, Hoopers Hooch and Smirnoff Ice did, said Citigroup in a review on Magners parent company C&C, published today. We do anticipate that consumer usage, by which me mean its long alcoholic drinks (LAD) market share where distributed, will peak next year.
Citigroup predicts the brands share of the LAD market, comprising beer, cider and alcoholic ready-to-drinks, of the on-trade in Scotland and London will peak at 5.5% in the current financial year, reaching 5% in the rest of the country. By 2009, Citigroup estimates the off-trade will account for 25% of total brand sales.
The biggest threats to Magners, said Citigroup, were new product launches by both S&N UK and The Gaymer Cider Group, which also went for the over ice messages to consumers, and possible increases in excise duty rates some time in the future.
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