Cider in fashion, Magners in profit

Drinkers between the 18-24 age group are abandoning beer in favour of cider - so claims the company behind Bulmers, Gaymers and Magners.

The fashion for pints with a sweet taste poured from bottles over ice is more than just a fad, insists C&C chief executive John Dunsmore as he unveiled year end results that give some evidence for his case.

The Ireland based group saw profits up 17% to 105 million, allowing it to spruce up the final dividend by 10% to 3.3 cents.

The UK accounts for half of all cider sales worldwide, something that has not escape the notice of rivals such as Stella Artois, which has also moved into the market.

The increased marketing spend on cider will only be good for C&C, says Dunsmore, a former Scottish & Newcastle executive.

"Cider is a growth category. All boats will rise with the tide," he said.

Magners sales are up 4% in the year, though Bulmers slipped 2.4%, a result blamed on dour times in Ireland.

Debts have been slashed from 359 million to just 6 million, leaving the company with room to move should it want to do cut more deals.

Said Dunsmore of the debt reduction: "We wanted to be flexible in a tough environment. There are lots of attractive assets that are likely to become available."

C&C sells Magners in the UK, Bulmers in Ireland and Tenants in Scotland. It owns Gaymers outright.