A REPORT ON CIDER - Star Retailer
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A REPORT ON CIDER
CIDER: STATE OF THE NATION KEY PLAYERS WITHIN THE INDUSTRY
EDITOR’S NOTE
Welcome to the second edition of ‘Shelf Talk’ by HEINEKEN UK – the latest in a series
of industry reports designed to support the off-trade in boosting their profits. With
summer underway, this issue takes a look at the booming Cider category, which has
seen continued growth in recent years, with several key players enjoying monumental
success. Summer presents the biggest opportunity for the category; the longer and
(hopefully) warmer days come hand in hand with an increased number of drinking
occasions that retailers can capitalise on, making for a profitable season. What’s
more, Cider isn’t just for summer either, with the category offering a plethora of
different tastes and varieties that ensure it can be enjoyed year-round. In this report
we observe the key trends shaping the category, provide tips on the types of cider to
stock for summer and beyond, and look at the tactics you can use to maximise sales
at a time when competition is rife. It’s a hugely exciting time for the category, so we
hope you find this report useful and here’s to a balmy season ahead!
Toby Toby Lancaster, Category & Shopper Marketing Director
CATEGORY PERFORMANCE
Premium Apple Cider
(-2% decline) – 4% share1 Heritage Cider
(+4% growth) – 8% share1
Pear Cider
(-14% decline) – 2% share1 White & Value Cider
(-2% decline) – 15% share1
No Low and Gluten Free Cider
(+37% growth) – 1% share1
Mainstream Flavoured Cider
Others (+15% growth) – 14% share1
(+24% growth) – 1% share 1
Premium Flavoured Cider
Mainstream Apple Cider (-2% decline) – 22% share1
(+6% growth) – 33% share1
THE TOP 5 1 2 3 4 5
performing cider
brands in the off-
trade: (000’s)
£163,212 £131,901 £60,914 £58,029 £51,544
£1BN 35% 13% 48% +8.1M MAT Value sales1 MAT Value sales1 MAT Value sales1 MAT Value sales1 MAT Value sales1
The Cider market HEINEKEN UK is 13% of Beer & 48% of the UK The Cider
1 2 3 4 5
is worth £1
billion in the
responsible for
35% of all cider
Cider buyers only
buy cider
population drink
cider, with key
category
has +8.1m
FASTEST
Off-Trade and sales in the UK3 (2.67m shoppers)5 seasonal spikes shoppers YTD6 GROWING YTD
has grown +3% over the summer5 brands in the
in the past year2
off-trade: (000’s) £2,180 £1,893 £1,710 £1,630 £1,562
Sales growth vs YA1 Sales growth vs YA1 Sales growth vs YA1 Sales growth vs YA1 Sales growth vs YA1
TIP: How can you capitalise on cider sales during the summer months?
In May 2019, Aspall Cyder Old Mout Pineapple & Magners Rosé In March 2019, Bulmers
• Retailers should consider stocking • Weather is a key factor • With a third of all drinking occasions now teamed up with Waitrose Raspberry is currently the Inspired by the success of unveiled Orchard Pioneers,
both a core range of ciders, such when anticipating including food7, cross-merchandising is a revenue to launch new fruit cider largest NPD in the category pink gin and rosé wine, a new 330ml offering
as Strongbow Original, as well as fluctuations in demand. stream which cannot be ignored. Implementing duo Pip & Wild in an aim with a total worth of £2.1m; Magners launched a new encouraging consumption
a premium option for shoppers Keep an eye on the cross-category merchandising for ciders that to continue driving in March 2019 Old Mout rosé variant in a bid to straight from the bottle – the
looking to trade up. Bulmers, forecast to ensure that are Great with Food, for example positioning innovation within the launched a Pineapple & be the ideal choice for biggest shake-up of
made with 100% British apples, chillers and fixtures are Strongbow Cloudy Apple alongside picnic premium cider category Raspberry variant, driving brunching, lunching and the category since
provides the perfect option for prepared for impromptu merchandise, is guaranteed to uplift sales as
the trend that millennials casual dining the ‘over-ice’ serve
prefer exotic flavours
those willing to spend a little bit occasions such as the ever- consumers make the natural link between the two
more, in return for provenance popular summer BBQ
Data source: 1. Nielsen Total Coverage Sales Value data to 08.06.19. 2. Nielsen Total Coverage Sales Value data to 08.06.19. 3. Nielsen Total Coverage Sales Value data to 08.06.19. Data source: 1. NIELSEN ScanTrack to 15/06/19, Total Coverage. 2. NIELSEN ScanTrack to 08.06.19, 52 w/e. 3. Nielsen Total Coverage Sales Data to 08.06.19.
2 4. NIELSEN ScanTrack to 16/03/19, 52 w/e. 5. Kantar WPO to 24/02/19, 52 w/e. 6. Nielsen Sales Value Data to 16/06/19. 7. Kantar Alcovision December 2017 3
IN CONVERSATION WITH...JANE PEYTON
Cider is also an international drink the Champagne method. One Cider has some really interesting
made in dozens of countries around producer is even using a qvevri to ‘Wow - I never knew that’ stories,
the world, so with many retailers ferment the cider in. A qvevri is a which help people to perceive
often highlighting their ‘World large clay amphora that is buried cider as being more than a drink
Beers’, they should remember that under the soil, which is historically made from apples. They are the
they can do the same with cider. a wine making technique from the sort of stories that people like to tell
country of Georgia. their friends, which in turn, will help
Finally, with people increasingly to make cider a more interesting
concerned about alcohol units, Other innovations include Thatchers proposition.
cider has a heightened appeal due experimenting with Rosé and
to its lower alcohol formulation. It HEINEKEN UK launching new We should also highlight
is also an excellent alternative to drinking formats such as Bulmers the individual flavours and
wine, especially when served in a Orchard Pioneers. characteristics of the particular
wine glass. apple varietal used in cider. This
How do we bring cider out of its silo helps people make purchasing
What are the latest cider trends? as a ‘summer drink’? decisions if they come across an
There are a few that stand out such To associate cider with other apple they particularly like. To put
as how Fruit Cider is continuing seasons, we should remind people this in perspective, few people
to be popular, with producers that even though cider is not would buy a wine without knowing
creating exotic combinations that apple beer, millions of people drink what grape it was made from - it’s
particularly appeal to a younger long, light, refreshing pale lager the knowledge of grapes that
demographic. beers year-round. Pale lagers are drinkers know and like that informs
the nearest beer equivalent to their purchasing decision.
No and low alcohol ciders are also the properties that make cider
here to stay and more producers associated with summer (chilled For more information on Cider
are introducing their own versions, and refreshing). Or to use a wine flavours, please go to page 10.
which is helping to grow the sector, equivalent, remind people that
as well as driving sales for retailers. sparkling wine is consumed year- As such, we can make them feel
round and that cider was the as though they are discovering
Producers are even starting to original sparkling wine. something. Give them simple
promote home-grown apples. For educational information so they
example, social enterprises across Furthermore, we should stop only are having an experience when
the UK such as The Orchard Project marketing cider with the summer they drink apple cider. For instance
are planting, and/or restoring season and promote it during - education about the difference
JANE PEYTON - The UK’s first cider pommelier and an award-winning beer sommelier, writer, broadcaster and founder of the School of community orchards, to produce autumn and winter as well. One between a cider made from cider
Booze – a drinks consultancy and corporate events production company. Jane was Britain’s first Beer Sommelier of the Year and is the cider with the apples grown. way to do this is to encourage apples and a cider made from
instigator and driving force of the UK’s annual national beer day – Beer Day Britain customers to pair it with food eating apples – there are distinct
Finally, hazy/cloudy ciders are also throughout the year, not just at differences. Some drinkers might
What makes cider so unique? day keeps the doctor away! Britain is the biggest producer of cider mantaining popularity. BBQs and summer gatherings. prefer eating cider apples and
Apples! There are hundreds of in the world and cider is an integral others might prefer drinking apple
apple varieties each with their own Historically, sparkling wine became drink in British culture - in fact, 56% of Where do you think we are going Finally, other formats of cider should cider. This educational information
characteristics and this means there popular through the endeavours apples grown in the UK are used to to start seeing the most interesting be highlighted over the year, such helps them make an informed
are countless flavour profiles and of west country England cider make cider. Cider has always been innovation across the cider as cider cocktails and mulled cider, purchasing decision but it also
several different styles. makers in the 17th century when a British alcoholic drink and that fact category? which will enable its appeal to last enlightens them so they can pass on
they experimented with secondary alone should persuade every retailer Innovation is coming from small year-long, as opposed to just one the knowledge to others.
People talk about the humble fermentation in the bottle. This was to include cider in their range. independent craft cider producers season out of the year.
apple, but apples are anything but later adopted by wine makers in who are creating ciders with
humble. They feature prominently the Champagne region of France. The only common denominator that additional ingredients such as hops How can we begin engaging the
in humans’ diets, but also in culture You could say that cider was the cider and beer have is the pack or spices. Many are experimenting younger generation with more
including language (for instance A original sparkling wine - after all cider format they are served in. Cider is with co-fermentation - for traditional apple ciders?
is for Apple, you are the apple of is made the same way that grape not apple beer! To make cider stand instance, apple juice and beer Talk up the fact that cider is a natural
my eye, etc), literature and art. They wine is, so it is apple wine. out against beer, the differences wort are fermented together to drink. Refer to provenance, apple
feature in many ancient myths for in flavour, taste, body and texture create a drink called a Graff. varietals - and their characteristics,
instance in Norse mythology, gods Why should cider be included in a should be highlighted, which retailers They are fermenting apple juice where were they grown, who the
owed their immortality to apples. core range and how can it stand out should be educated about in order with red wine grape skins and grower/orchardist is. Tell a story Content produced in partnership with
And not least in health – an apple a against beer? to drive further sales. then producing the cider in about the apples and the orchard. Jane Peyton www.jane-peyton.com
4 5
HIGHLIGHTS OF THE YEAR
SUGAR REDUCTION CALORIE AND WWF PARTNERSHIP LIGHTER CANS
NUTRITIONAL
HEINEKEN is leading the way on reducing sugar In May 2019, Old Mout Cider, one of the UK’s In April 2019, Thatchers announced it will be
through natural techniques without adding LABELLING most sustainable ciders, and the world’s leading launching lighter weight cans for its cider,
artificial sweeteners. Pioneering the change is independent conservation organisation, the World allowing the brand to save the equivalent of 5.9
Bulmers Original cider, which relaunched with a Wildlife Fund (WWF), announced they were joining million empty cans a year. The latest in a string of
new and improved recipe made with 100% British In June 2019, HEINEKEN, forces for a brand-new campaign which will help sustainability initiatives, this change will see around
apples from Herefordshire, and is free from artificial the UK’s leading cider to protect half a million acres of habitat around the 70 tons of aluminium saved each year, saving
flavourings, colours and sweeteners. With 30% less maker, announced world. The partnership is the next chapter in Old approximately 381 tons of CO2 in 2019 by using only
sugar, the natural sweetness of the cider and its that it will be adding Mout’s sustainability agenda, which has already the lighter weight cans.
refreshing, crisp taste is derived purely from the calorie and nutritional seen the New Zealand-born cider help protect
apples themselves. information labelling to its native country’s national icon, the kiwi, that sits
all of its cider packaging. proudly on all Old Mout packaging.
The move enables
consumers to easily
find the ingredients
and calorie content
of their drinks and is a
key pillar of HEINEKEN’s
commitment to lead a
more sustainable cider
category.
STRONGBOW THE ORCHARD CIDER STRAIGHT NEW FLAVOURS
NO ARTIFICIALS PROJECT FROM THE BOTTLE
On the back of consumer demand for pink gin
and rosé wine, Magners Irish Cider has introduced
In June 2019, Strongbow, number one in the Cider As a cider that proudly uses 100% British apples and In March 2019, Orchard Magners Rosé, a light blush apple cider. After
category, announced its Strongbow Original, has a passion for orcharding, Bulmers has worked Pioneers, in collaboration with proving popular in other parts of the world,
Strongbow Cloudy Apple and Strongbow Dark with The Orchard Project for five years and in June Bulmers and two passionate Magners Rosé is designed to accompany brunch,
Fruit variants are now made without artificial 2019, it helped restore a rundown urban orchard in apple growers, revolutionised lunch and casual dining alike, and comes in a
sweeteners, colours or flavours. Leading from Manchester’s Platt Field Park to its former glory – to consumers’ enjoyment and 330ml bottle at 4% ABV.
the front, Strongbow aims to transform the Cider become a tranquil green space benefitting the perception of apple cider by
category in 2019 and the move to focus on more local community. Within seven hours, a team of encouraging consumption
natural products is just the first step in achieving this. 35 local volunteers from Bulmers and The Orchard straight from the bottle – a
Project, rallied together to plant trees, pave paths, pioneering shake- up of the
restore signs and remove weeds - in time to hand category since the introduction
back the orchard to the community in the evening of cider ‘over-ice’ more than ORCHARD GROWTH
with a celebration. a decade ago. Opening up a
wealth of drinking occasions, the Thatchers plans to increase to 500 acres of orchard
new contemporary-designed this year, as it looks to plant 13 new acres totalling
330ml bottles offer consumers a more than 5,000 new trees. As part of this, the
smaller, easy-drinking format and brand is also establishing its 100 Tree Trial, which
a convenient way of consuming is a trial of more than 40 acres of apples trees
cider, without the need to pour made up of varieties that haven’t been used in its
into a glass with ice. cidermaking before.
6 7
TACKLING THE BIG ISSUES WHICH FORMAT IS BEST?
Tailoring Getting the Standing out SMALLER FORMAT SINGLE
to trends basics right from the crowd BOTTLES BOTTLES
We’ve been used to drinking A whopping 43% of cider
cider over ice for a decade, sales are sold in single
but, since then, there’s been no bottles1 and with many
“With so many changing “My colleagues are “With so many stores in indication that the apple cider shoppers looking to
tastes and attitudes convinced we should stock my area, I sometimes category has evolved. There is consume drinks as soon as
nothing quite like a chilled cider two hours after purchase,
amongst young people, less of the ‘basics’. How struggle to compete with
over ice whilst relaxing outdoors single bottles are ideal as
such as the trend of exotic important is it to maintain competitors in the on a summer’s day, but some they offer a convenient, yet
flavours, how can I ensure I a mainstream offering in vicinity of my shop. consumers are now telling us that premium, format. As such,
stock the correct products a market dominated by What merchandising tricks often the large bottles can be it’s essential for retailers to
too much. Co-created by Bulmers stock the right pack sizes
to attract younger Premiumisation and can I use to capitalise on and two passionate British apple and ensure the chillers are
shoppers to my store?” Premium Flavoured the inevitable summer cider growers, Orchard Pioneers filled to the brim. After all,
Ciders?” cider boom?” has revolutionised the design summer is a prime time
and format to re-engage apple for the spontaneous BBQ
Toby says: “To attract younger Toby says: “It’s critical that retailers Toby says: “While it might cider drinkers and suit growing or summer get together.
shoppers into store, it’s essential do not ignore the Mainstream sometimes seem like an uphill occasions. Bringing a fresh take Bulmers and Old Mout both
to stay ahead of emerging Apple Cider (+6% growth) and battle to ensure your store stands on taste, the two variants, Red provide strong choices to
trends. For example, retailers Mainstream Flavoured Cider (+15% out amongst competitors, you Apple and Green Apple, are help retailers boost sales!
should ensure they stock exotic growth) categories1. Combined the must play up to your strengths available in new, easy-drinking
variants of cider as these are mainstream categories make up of convenient location and your 330ml bottles.
continuing to go from strength 47% of all cider sales, proving their local knowledge, where you
to strength, driven by a younger popularity amongst consumers1. can. To complement this, savvy
generation who are looking for One such brand which is currently merchandising is a key area to
fruit ciders in original, unique evolving with the landscape is nail. Often shoppers visit their
flavours. The growth has been Strongbow. The brand recently local store to purchase cider
spearheaded by brands like
Kopparberg and Old Mout, which
announced that its Original, Cloudy
Apple and Dark Fruit variants
for consumption within a few
hours, as such, it’s essential that CANS LARGE
recently launched a Pineapple
& Raspberry variant. What’s
are now made with no artificial
sweeteners, colours or flavours,
you keep an eye on weather
forecasts to predict the peaks
SHARING BOTTLES
more, with younger consumers setting it apart from competitors. and troughs in demand, allowing For those picking up supplies Remember our love of sparkling
conscious of their carbon What’s more, Strongbow Original time to stock up when a sunny to take to family gatherings wine? We couldn’t get enough
footprint, 100% recyclable brands holds the crown as number one spell is on the horizon. In addition, and outdoor dining of large sharing bottles of fizz,
such as Old Mout are ideal to brand in the category, currently given that 70% of cider sales occasions, 4-pack formats, but sales started to slow down as
stock to cater for the growing worth £163m2, demonstrating its are generated from single or available in brands such consumers went on the lookout
as Strongbow Original and for new, alternative tipples to
audience. As a final tip, ensure importance as a must-stock for small packs3, it’s important that
Strongbow Cloudy Apple, expand their repertoire. As such,
you’re using your store’s social retailers. Overall, stocking a core customer favourites are stocked
are ideal as they are quick premium options started to rise.
media channels to speak to range of ciders is paramount to in the right pack size; small packs to chill and easy to carry. Large sharing bottles of cider
younger shoppers and remind ensuring customers have a staple and large single bottles should Appealing to all tastebuds, have reinvented the category,
them of the key moments to stock choice, balanced with a robust be the focus as they are quick to Strongbow Original is a marrying bottle and cork
up for.” selection of Premium flavoured and chill and easy to carry. Seasonal bittersweet cider with a closures with a focus on food
Premium Apple Cider alternatives to events such as big sporting subtle apple character suited pairings. Why not encourage
maximise sales to provide shoppers occasions and bank holidays to customers looking for a customers to swap their usual
Mainstream optimum range of choice.” should also be promoted in-store dry cider, whilst Strongbow
Cloudy Apple offers an
sharing bottles of wine in favour
of discovering the sophisticated
via creative POS, signs and social
categories media, to remind customers of intensely refreshing, fruity taste of modern ciders?
make up key drinking occasions.”
apple flavour, perfect for
providing apple refreshment.
47% of all
cider sales
Data source: 1. Nielsen Total Coverage Sales Value data to 08.06.19. 2. NIELSEN ScanTrack to 15/06/19. 3. Nielsen Scantrack Data to 20.04.19 Data source: 1. Nielsen Scantrack Data to 20.04.19. 2. Nielsen Total Coverage Sales Value data to 20.04.19
8 9
CIDER FLAVOURS
SOUR & SWEET LUSCIOUS SWEETNESS
LUSC
EET IOU
Orchard Pioneers Red Apple Cider
SW SS Strongbow Cloudy Apple
Juicy red apples shine forth in this sour sweet spritzy cider
& W Apple pie in a glass! Lightly tart apples are balanced with
Three words: Sour, sweet, spritzy
EE a sweet vanilla flavour for ramped-up refreshment
UR TN
Food match: Lasagne (meat or vegetarian) Three words: Appley, sweet, sparkling
Food match: Chicken or vegetable korma
Mortimer’s Orchard (Weston’s) O
S
Thatchers Haze
ES
S
TANGY SWEETNESS FRUITY NECTAR
S
SWEETNES
FRUITY NECTAR
Orchard Pioneers Green Apple Cider Old Mout Pineapple & Raspberry
Crisp green apple flavours are the stars in this Tropical pineapple and rich raspberry combine
effervescent cider with an invigorating tang in a sherbet sweet cider
Three words: Tangy, sweet, effervescent Three words: Tropical, fruity, sweet
Food match: Fish & chips Food match: Hawaiian pizza
Kingstone Press Old Mout Kiwi & Lime
GY
Tangy kiwi fruit meets zesty lime in a lush sweet cider
Three words: Tropical, fruity, sweet
Food match: Kiwi fruit cheesecake
TAN
Thatchers Rosé, Kopparberg Mixed Fruit
JUICY SWEETNESS MEDIUM DRY
Bulmers Original Strongbow Original Cider
IC
Sweet green apple flavours are balanced with a refreshing tang Ripe green apple flavours are the stars in this
JU
Three words: Juicy, sweet, tangy refreshing effervescent cider with a crisp finish
Food match: Fish tacos
Y R Y Three words: Sour, sweet, crisp
SW D
Food match: Pasta Alfredo
Magners Original
EE I U M Thatchers Gold, Stowford Press (Weston’s)
TNE D
SS ME
Content produced in partnership with Jane Peyton - www.jane-peyton.com
10 11
BEYOND THE CORE SEASON
Whilst cider is typically alongside crisps or snacks. Retailers should also ensure must-stock due to their
perceived as a summer- In these instances, cross- that they are well stocked synonymous association
only offering, it’s important category merchandising with a variety of options, with the holiday. With
for retailers and wholesalers between cider and including premium options, shoppers around Halloween
not to underestimate the snacking foods can help in order to secure maximum purchasing cider to take to
value of the category, all stores capitalise on the sales and establish social occasions, small
year long. opportunity, as shoppers themselves as the go-to packs and large single
make the natural link store for students throughout bottles are the perfect size
As cider is a particularly between the two their time at university. to stock for shoppers
popular choice among categories. Equally, with looking for last minute
18-25 year olds, the start of students often making Moving into October, top-up purchases before
university and events like spontaneous visits into Halloween is the second heading out. Furthermore,
fresher’s week, drives a stores to stock up ahead of biggest drinking occasion, retailers should also
spike in sales with students social gatherings, ensuring after New Year’s Eve1, consider stocking no or low
opting for more refreshing a good range of the basics, which naturally presents a alcohol options, with clear
and fruity tastes. and that correct pack huge opportunity for stores signage to zero zones, for
Throughout these formats (such as small to drive cider sales those shoppers who
occasions, students are packs) are properly chilled, between autumn and wish to feel part of the
likely to be purchasing is crucial to ensuring that Christmas. For Halloween, drinking occasion but
cider to enjoy with friends new shoppers don’t fruity ciders, such as want to moderate their
ahead of going out, often venture elsewhere. Strongbow Dark Fruit, are a alcohol intake.
Data source: 1. Mintel
12
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