The cider boom has been music to the ears of Gaymer Cider Co managing director Peter Spencer. But will its new owner, C&C Group, keep the party going? Anna-Marie Julyan reports


It's a balmy October day at Gaymer Cider Company's Stewley orchard, and MD Peter Spencer is full of smiles as he explains the strategy that has seen sales of Gaymers Original Cider and Gaymers Pear more than double in the past year.

Fast forward two months and Spencer's tone is noticeably more coy. The Gaymer Cider Co, part of Constellation Brands, has just been bought by drinks giant C&C Group for £45m and its brands such as Gaymers, Olde English and Blackthorn now share a stable with powerhouse brands including Magners and Tennent's. "There's absolute logic in the move and opportunities for all parties," says Spencer. "From a Constellation perspective, it allows them to pursue its objectives with its core and international businesses and Gaymers has a massive opportunity to develop its UK business."

Gaymers has been doing just that. Value sales of cider and perry have grown 16.4% in the past year [Nielsen MAT 3 October] with Gaymers leading the charge. Sales of Gaymers Original Cider and Gaymers Pear, have soared 133% to £19.5m in the past year in the off-trade alone.

Having spent nine years at Constellation, Spencer took the reins in January and has overseen the relaunch of West Country favourite Blackthorn and the meteoric rise of the premium Gaymers Pear, which, since its debut 18 months ago, has racked up £9.1m in off-trade sales. Spencer is particularly proud of the Blackthorn relaunch. In the past year, the brand has grown 15.2% to £18.3m in the off-trade. "We had a brand in decline and turned it into growth," he says. "We've mellowed the taste to make it slightly less dry and made the packaging more contemporary."

With that kind of growth, and the weakness of sterling, it was perhaps inevitable that Gaymers would be attractive to C&C, with Spencer premiumising the entire portfolio. "We've been growing our specialist ciders, such as Gaymers and Blackthorn, [as part of a move] to reshape our business," he says. "The premium end is where the best growth is coming from. The market is growing in specialist ciders, modern and standard, so I'm sure C&C will want to exploit all those opportunities."

He can't say for sure if C&C shares his vision, however, with rumours that the Irish group will use Gaymer's cider mill for UK mass-market production of Magners, which has retail sales of £65m in the off-trade alone. The company has invested £35m in the past 10 years in updating equipment and increasing production.

The other imponderable is investments. It spent about £11m on above-the-line ads for 2009, of which £5m went on tying Gaymers in with live music events, such as Glastonbury, and is committed to a bigger spend next year, says Spencer.

Whether that's his call to make remains to be seen, however. Spencer can't even say whether he'll stay only that he will transfer with the rest of the team in the new year. But whatever happens. Somerset looks set to be the venue for some big events for Gaymers.

Read more
Will Magners Irish Cider be made in Somerset? (5 December 2009)
Magners maker C&C Group to buy cider rival Gaymers (30 November 2009)

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