According to Magners, "Market conditions in the UK & Ireland are getting worse, and increased price sensitivity by consumers plainly presents risk to our premium brand portfolio." The company said it expects its operating profit excluding exceptional items and gains on hedging to be around 90M Euros in the fiscal year just ended, down 28% from a year earlier and, in 2009, may fall by another 5M Euros. Cider sales in the year just ended are expected to be down 17% - a 14% drop for Bulmers in Ireland and 23% for Magners in the UK. In the rest of the worked, however, volume sales for Magners increased by 16%. The recent fall in sterling also reduced profit by about 16M Euros. To try to counterbalance the situation, C&C said it will launch Pear Cider in the UK & Ireland & take steps to improve cost efficiency & effectiveness in advertising & investment.
