Share Index: Magnificent Magners

Cider growth leads to double-digit price rises for C&C Croup

The big story in this month’s db index is C&C Group Plc or, more precisely, Magners. The firm saw its share price rise by over 15% in the last quarter as a result of the success of the cider brand, which increased its volume by 130%. According to Maurice Pratt, group CEO, the brand was doing so well that the campaign to extend Magners’ distribution throughout the UK (and double its existing share of the on-trade LAD market) was ahead of schedule.

In its last set of financial results, C&C announced an increase in operating profits of 13% as well as revenue growth of 9%. Volume of the group’s Irish cider brand, Bulmers, also increased by 6% against an Irish LAD market growth of around 2%.
With total dividend at 15 cents per share – which represents an increase of 15.4% on the previous year – it is small wonder that investors are clamouring for a stake in the group.

This month’s graph tracks the progress of the MSCI EM Asia, EM Latin America and EM Europe, Middle East and Africa (EMEA) Beverage Indices. All three indices have witnessed a steep decline in performance since May, when volatile equity markets and currency fluctuations caused investors to take refuge in investment safe havens, hitting emerging market countries hardest.

© db July 2006