Magners firm hit by wet weather

The maker of Magners cider has seen a sharp fall in profits in the 12 months to the end of February after poor weather turned consumers off.

Drinks group C&C blamed last year's wet summer for a fall in pre-tax profits to 103.9m euros ($160.5m; £82.1m), down from 176.9m euros the year before.

Increased marketing investment and higher manufacturing costs were also to blame, the Dublin-based company said.

It hopes a better summer this year will put the fizz back into the brand.

Maurice Pratt, C&C Group chief executive, said: "In 2008/09 we expect to stabilise the group's financial and market performance and to deliver growth through the benefits of a streamlined organisation, cost reduction programme and a series of marketing initiatives."

Mixed fortune

Magners enjoyed a bumper year in 2006 when it went on sale in England for the first time, having been sold in Scotland since 2003.

Helped by a hot summer and the football World Cup, sales soared 225%.

But since then, it has enjoyed rather less good fortune and was forced to embark on a cost-cutting programme aimed at saving the firm 10m euros a year last November, which included trimming staff by 150.

C&C spent 68m euros on marketing last year, a 41% increase on the year before.

Its high-profile campaigns, often showing colourful images of people enjoying the drink over ice, have been credited with revitalising the cider market, allowing competitors to enter the fray.

Other C&C brands include Tullamore Dew whiskey and Irish cider brand Bulmers.

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