Magners cider maker C&C Group chief executive Maurice Pratt is resigning from the company, saying his repositioning strategy over the past two years had “not met exepctations”. The company has announced a review of its marketing strategy in an attempt to revive revenues.
The company spends around £15m on advertising a year, according to Nielsen Media Research. The campaign, which focuses on the seasons, is created by Dublin-based Youngs Euro RSCG, with media planning and buying by Media Planning Group.
Despite rapid growth in recent years, sales of Magners have fallen in 2008. In the six months to August 31, the company says revenues fell 13%. The company has also warned that it expects current sales trends to lead to a “material drop” in operating profits during the second half of the year.
Sales of Magners in Britain had been hit by the wet summer weather and the tough economic environment, C&C said. However, it says sales should have been better and that the company would review its marketing strategy.
Pratt said: “The past two years have been very challenging for C&C and despite our best efforts we have not achieved our ambitions for the business.
“As chief executive I have to be accountable and take responsibility for business performance.
“The company has to take important strategic choices and I have therefore decided it is time to stand aside and allow a new chief executive to bring fresh thinking and impetus to the business.”
He will continue as chief executive until his replacement is appointed.