Press Release -United Kingdom Cider Market Insights 2013 by winaarkstore


									              United Kingdom Cider Market Insights 2013
                           The Hot Summer raises the UK’s Cider Market growth

London / India, September 10th, 2013 – Although the cool start to 2013 points to another year
of downward sales Canadean believes that, there are a number of reasons for the industry to be
optimistic. Key will be a better summer; even an average summer should be good enough to prompt
growth this year.

The arrival of Carling and Somersby is another factor that should boost the market. The marketing
investment should raise the noise level of the category and improve its profile. The involvement of
Molson Coors, Carlsberg and recently Fullers is an endorsement of the future prospects of the

The outlook for ciders has been dramatically improved now that the threat from minimum pricing
has been removed. Government estimates suggested that the cider market would nearly be halved if
the policy was introduced.

Private Label squeezed by brands

Cider is a very price sensitive category and, with sales bias towards the off-premise, Private Label has
a share of around 8% of the market. The alcoholic duties order has pushed prices up and the drop in
overall off-premise sales has contributed to the estimated 5% decline in consumption last year.
Aston Manor now produces the vast majority of all Private Label ciders in the UK. C&C Group cut out
the less profitable Private Label contracts in 2011 but remains an important producer. Malt House
Vintners produces own label volumes for Bookers.
Strongbow still dominates but volumes tumble

A new pear variant and a lower 5.0% Abv could not prevent Strongbow falling steeply last year. The
brand remains a cider giant and still accounts for well over a quarter of total sales. The pear variant
was relatively well received and this helped packaged sales hold up. The pear variant is now the
biggest branded pear product in the off-premise. Draft sales were the main factor behind the 2012
performance. A 7% increase in prices was a driver but the continued success, albeit at a slower rate,
of draft variants of Thatchers, Stowford Press and Magners is hitting the market research brand
hard. Not to miss out on the flavored cider boom, a dark fruit variant has appeared in 2013.
Heineken continues to support the brand and has international aspirations for it.

Minimum pricing threat to white ciders fades

The key segment movement in 2012 was the rise of flavored cider, which has now overtaken the
pear segment to make up around a tenth of the market. The launch of Stella Cidre pear and
Strongbow Pear more than compensated for the fall in other branded pear offerings and pear share
did increase last year, standing at almost 9% of the market. Apple continues to dominate but has
dropped to little more than 80%. Until recently the market was split between the dry apple ciders
popular in the West Country and the sweet apple ciders enjoyed in the North East. The dry ciders
make up the bulk of sales.

The arrival of Kopparberg reignited the pear segment (or what industry purists would call perry) and
its success prompted Magners, Bulmers, Stella Cidre and Strongbow among others to introduce pear
variants. When Kopparberg began to enjoy phenomenal success with other flavors, the big players
followed suit culminating in the jump in flavored ciders in 2012.

Target Audience

    •       Cider Producers
    •       Suppliers to Cider Companies
    •       Cider researchers
    •       Trade body, academia or other industry observers
    •       Marketing and advertising executives

Related Reports
•   Australia Cider Market Insights 2013
•   USA Cider Market Insights 2013
•   United Kingdom Cider Market Insights 2013
•   South Africa Cider Market Insights 2013
•   Finland Cider Market Insights 2013
•   France Cider Market Insights 2013
•   New Zealand Cider market Insights 2013

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