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Thirst for cider as Guinness sales fall
Richard Delevan



THE tale of two pints came as sobering reading last week for those in the drinks industry, at least those at St James's Gate.

Diageo revealed on Thursday that Guinness sales were in "structural" decline in Ireland, dropping 8% due to the shift in consumer behaviour from drinking pubs to drinking at home. But C&C reported Friday that its cider division had seen a 75% increase in turnover overall.

Most of the growth came from a 250% increase in UK sales of Magners, but a still not-unimpressive growth of 7% of Bulmers sales in Ireland.

Demand has grown so quickly that the company said it is racing to beef up its Clonmel facility to meet demand . . .

not to mention trying to source an ever-increasing number of apples as reported in TribuneBusiness two weeks ago.

"Finding a person under 25 in a pub drinking a pint of Guinness is pretty rare, " said Terence Cosgrave, editor of Checkout Ireland. "But cider is now perceived as healthy and classy thanks to C&C's marketing, the polar opposite of the drink's image 10 years ago.

"C&C has positioned cider perfectly. It's got a clear focus on the brand, having disposed of Tayto, and is promoting it well. Diageo doesn't have the same focus."

Diageo chief executive Paul Walsh said the company was focused on 'premium-isation' of its brands.

Because Diageo Ireland owns Smirnoff and several wine brands in Ireland, where spirits and wine sales are rising with consumer shifts to off-trade, the company is wellinsulated against further declines in sales of Guinness.




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