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Ireland: C&C Shares Fall as UK Cider Sales Data Disappoints

Source: Reuters
10/11/2006

Dublin, Nov 10 - Shares in Irish drinks group C&C fell as much as 7 percent on Friday as traders said new data suggested its fast-growing Magners cider brand was not performing as well in Britain as some had hoped. "There's some Nielsen data out today. It wasn't as good as expected," said one trader.

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Analysts watch sales volume data from market research group AC Nielsen closely to gauge how well Magners is selling in the UK, where C&C began rolling out the drink nationwide in March, accompanied by an intensive marketing campaign.

"Basically what the data shows is that the market share in August and September is slightly down from the spike up in July, but I wouldn't be too worried about it," said one analyst who asked not to be named.

Shares in C&C have increased more than five-fold since a 2004 stock market debut and have more than doubled this year thanks largely to the success of Magners and of its Bulmers cider brand in the Irish Republic.

"The shares have had a good run lately, so I expect people are taking profits," the trader said.

The stock was down 4.9 percent at 11.77 euros by 1342 GMT, having earlier fallen as low as 11.51 euros -- its weakest point since mid-October.

The market reaction was no great surprise given the stock's recent strength, the analyst said, but added it was not enough to alter his view of the company's prospects.

"We knew already that C&C were producing at full capacity over the summer anyway. All the data really tells you is that July was really hot, which was good for sales. It doesn't do anything to change my medium-term forecasts."



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