EXPORT sales of Tennent's are soaring as the Scottish brand gains popularity in the Republic of Ireland, Europe and North America.
Volumes for beers under the Tennent's banner, including Export and the famous lager, rose 47.6% in Ireland.
The drinks are now available across more than 1200 pubs in the country with the recent launch of Caledonian Smooth said to have been well received.
Sales to new markets including Italy and the United States meant Tennent's was responsible for 12% of its Dublin based owner C&C Group's total export volumes in the three months to May 31 this year.
The Tennent's range, made and bottled at the Wellpark Brewery in Glasgow, is also being sold in the on and off trade in countries including Russia and Australia.
In the UK the volumes dipped 6% but net revenues increased 5.4% due to a better pricing mix.
C&C said the Scottish beer market had declined around 1% in the quarter and it was pleased with the "robust" performance and the launch of its latest brand.
It said: "The rollout of Caledonia Best is progressing well with distribution and throughputs in line with internal plans."
Poor weather affected sales of cider brands Magners, Bulmers and Gaymers, which were down 5% by volume in ROI and 21.6% in the UK.
Revenues fell 25% after prices came under pressure as C&C tried to clear stock.
The company pointed to industry figures which suggested overall cider sales dipped 26% in the wettest April on record. There was some cheer with total export volumes outside of the UK and Ireland rising 62.9% while net revenues in that segment were up 47.4%.
Excluding American cider brand Hornsby's, which C&C bought for €20 million (£16m) in November last year, exports volumes grew 28% with net revenue showing a 14.6% increase.
C&C expects to post operating profit for the full financial year in the range of €112m to €118m, which would be an increase on the €111m brought in during the 12 months to February 2012.
It also pledged to increase commercial support for the core cider business during the next nine months and predicted a "recovery in volume and revenue".
Stephen Glancey, C&C chief executive, said: "Despite a challenging quarter and tough consumer backdrop, we are confident that our resilient business model and strong brand market combinations will deliver continued earnings growth for the full year and maintain our business momentum."
Phil Carroll, analyst at Shore Capital, said: "As expected, given the poor weather during the period and the tough comparatives in the prior year, the Q1 trading performance has been weak in the UK and Ireland although Tennent's has performed well in difficult markets and export, while proportionally small, has also had a good Q1.
"While this update is weak, particularly in the UK, it is not surprising and the profit guidance should help give investors some reassurance on full expectations."
Mr Carroll maintained his buy rating on the stock as he believes C&C is in good shape despite challenging markets and the growth potential of cider could make it an attractive bid target.
C&C bought Tennent's from Anheuser-Busch Inbev in 2009 as part of a deal worth around £180m and which included an on-trade loan book plus distribution rights to brands, including Beck's and Stella Artois.
Since then C&C, which employs more than 300 at Wellpark, has invested in a training academy and bottling line in Glasgow.
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