Magners owner reviews marketing spend

C&C Group, owner of Magners, is reviewing its marketing budget after reporting a 10.5% dip in revenues for the first half of its financial year.

Magners campaign

The drinks firm says it will assess the planned €8m (£7.4m) marketing investment announced in July in light of “weaker” sales in August and September and the group’s recent acquisition of Tennent’s.

John Dunsmore, chief executive officer, says the group will deploy its marketing spend where “we can get the best returns for shareholders.”

Revenue for the six months to 31 August was € 257.5m (£237m), down 10.5%, or 6.3% on a constant currency basis.

Operating profit before exceptional items fell to €57.4m (£52.8m), a decline of 13.6% on a constant currency basis.

C&C Group has made several moves this year to revive flagging sales.

In August, it bought Anheuser-Busch InBev’s Irish, Northern Irish and Scottish businesses, including the Tennent’s brand, in a bid to establish Magners in those countries

The company also called a review of the Magners advertising account, currently handled by Euro RSCG London and the agency network’s Dublin office Young Euro RSCG.

The group has since launched a new Pear variant supported by two campaigns featuring comedian Mark Watson.

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