London-based Bernstein Research has suggested that cidermakers like C&C Group, parent of the Bulmers and Magners brands, should adopt a brand building approach akin to that of Jameson in the US, if the cider market is to make gains across the pond.
"We still believe that the cider category has lots of potential for growth in the USA, even if it may never reach the dizzy heights of the UK or Ireland," Bernstein said in its report, entitled 'The US Cider Band-Wagon Comes Juddering to a Halt ...... For Now, At Least'.
"However, categories do not build themselves. They require consistent steady brand- building. Look at the way the Irish whiskey category has grown on the back of decades of patient brand-building by Jameson."
Bernstein noted that the US cider category has gone from being 'on-fire' to flat in around 18 months, due to what it says are the 'boom and bust cycles' associated with 'the sweet, fruity, youthful end of the drinks market', and innovation by the major players in the beer market.
Elsewhere, Shore Capital Stockbrokers said that C&C Group's H1 results, released last week were 'worse than we expected', with 'few positives to take out of the results'.
C&C Group saw net revenue decline by 12.3% year on year in Ireland during the period, with net revenue down by 9.8% in Scotland, and by 12.5% in the US.
Looking ahead to the coming year, Shore Capital noted that there have been "distribution wins" in Ireland, including Corona and Accolade Wines, which could lift its performance.
© 2015 - Checkout Magazine by Stephen Wynne-Jones
