Alcopops take fizz out of Bulmer
SHARES in Strongbow and Scrumpy Jack cider maker HP Bulmer slumped nearly 13% as the group served up an 18% fall in profits. As well as the 11 September effect on US bars, chief executive Mike Hughes blamed the rise of flavoured alcopops in the US and Australia. Analysts were also shocked by the £1.5m hit from a production problem, now resolved, at its Hereford bottling plant.
Hughes fingered Smirnoff Ice and vodka-based Mike's Hard Lemonade as the main alcopops predators of its US sales, where it was particularly hitting Bulmer's Cider Jack. The stock dropped 54 1/2p to 367p.
On the brighter side, Bulmer has bagged the rights to Mike's Hard Lemonade in Australia and will be launching it in Britain next year. 'The overall performance of our international business has been disappointing,' Hughes said.
Pre-tax profit in the six months to 26 October was £13.5m before exceptional costs against £16.5m in the same six months last year. Turnover was £286m against £257m last time. The dividend is pegged at 5.9p.
