WESTONS CIDER REPORT 2021 3
Westons CideR RepoRt 2021
, Managing Director of Westons Cider Westons of Director , Managing In the report, we reference some latest insights about the confidence about confidence the insights some latest report, the In reference we and keenness and motivations their consumers currently, of level to get back into pubs and restaurants as they begin to re-open. begin to pubs and as restaurants they into back get to navigate from a business perspective. perspective. a business from navigate We are a nation of pub goers; we love going out and we all increasingly and we out going love we pub goers; of are a nation We us, it certainly was one of the most difficult periods of time to to time of periods difficult the most of one certainly was it us, like to eat out. We’re all not just looking forward to a return of an ontrade of looking just all not a return forward to We’re out. eat to like undoubtedly went throughundoubtedlywent challengingyears, but for most of that’s open, but of a fundamental recovery in the hospitality the in the a fundamental recovery of sector but by open, that’s My great grandfather and the following Weston generations generations Weston and the following grandfather great My end of the year. year. the end of With the Summer ahead, we see cider playing its part; integral to the classic the to part; its integral see playing cider we Summer the With ahead, uniqueBeer seeking gardens drinkers open that with Summer. British sport with likelihood the a Summer with coupled packed and taste, refreshment home at the both drive undoubtedly being meet will able a little up of to more, home drinking occasions. of and out industry cider and a strong heart rural communities the is at Cider many of And more directly and indirectly. economy recovering a to help contribute will UK the category cider offers an type amazingly every range for diverse broadly, part our and play to proud We’re shopper occasion. every and for drinker, of the in be support able to all involved those Report, hope Cider we’ll this we with industry success. enable continued to HELEN THOMAS HELEN Member Family Westons Generation & 4th overview annual Report, our the Cider of edition the 6th to Welcome the to forward also looking but back looking category, the cider of anniversary, 140th its celebrated Cider Westons Last year ahead. year was. it an extraordinary year what and Westons CideR RepoRt 2021
WELCOME 2 5 Westons CideR RepoRt 2021 70 22-45 20 66 16-18 6 46-65
E-COMMERCE OVERVIEW E-COMMERCE SNAPSHOT INTERNATIONAL THE YEAR AHEAD - CIDER SEASON - CIDER SEASON ON TRADE MARKETPLACE ON TRADE SNAPSHOT THE TOP 5 CRAFTED IN BOX BAG ON TRADE STOCKING RECOMMENDATIONS ON TRADE GREENSHOOTS ON TRENDS IMPACTING TRADE IN 2021 DRINKING HELP OUT TO OUT EAT ON TRADE RECOVERY 61 53 52 56 58 62 70 54 66 47 68 64 48 46 CRAFTED CIDER CIDER RETAILERS OFF TRADE STOCKING RECOMMENDATIONS KEY TALKING POINTS TALKING KEY FORMATS CIDER PACK THE TOP 10 THE TOP 5 OFF TRADE OFF TRADE MARKETPLACE OFF TRADE SNAPSHOT CIDER & LIVE SPORTS TRENDS OFF TRADE OCCASIONS ON TRADE OCCASIONS MEET THE CIDER EXPERTS THE MEET HEADLINES CIDER INDUSTRY WELCOME 2 6 12 16 18 32 23 14 38 26 22 28 30 20 34 40 44 Westons CideR RepoRt 2021
CONTENTS 4 MEET THE EXPERTS
Simon Horner Coming out of previous COVID-19 has forced us to take a good look Business Unit Director – Alcohol and Out of Home lockdowns, draught products at how to get the best cider experience in the Kantar Worldpanel were winners, so with reopening absence of the hospitality sector. Once the After a year of postponed events and limited social interaction, cider, of outdoor spaces in April and the on trade fully re-opens, there will be an like the rest of the wider BWS category has much to gain from events better weather this would be an unprecedented level of excitement in the air – such as the Euros and music festivals following Boris’ recent roadmap ideal opportunity for draught even more so than England’s World Cup run in announcement. Therefore, cider brands should be looking to maximise cider to capitalise on consumers 2018. their exposure and availability to consumers at these critical occasions. who will want something they can’t replicate at home. 2020 was a tale of forced circumstances leading 2020 saw a notable increase in new shoppers to the category and an to voluntary decisions. One of the major increased number of BWS shoppers adding cider to their repertoire. With the growth of the treat shopper needs to emerge from a difficult year Brands should continue to understand their new shoppers and occasion and premium brands, is the desperate need to elevate the in-home communicate their brand merits to maximise consumer retention cider can learn from the likes of experience. Many live where they work, and as behaviours begin to return to normal. whisk(e)y, wine and gin, where work where they live. These forced differentiation on flavour, circumstances have resulted in voluntary ingredients, taste and origin can decisions that may ordinarily be outside of our is made and by providing the Chris Sterling be used to enhance brand Alex Heffernan comfort zone: moving out of the cities, saving Fenella Tyler beautiful backdrops to our Client Director Senior Insight Manager Chief Executive perception. Combined with the more money, finally getting the kitchen redone, countryside with acres of CGA IRI National Association growth of apps, this could offer the list goes on. These decisions mean that, stunning orchards. opportunity to communicate this when the pubs and restaurants re-open, in- of Cider Makers There is opportunity for cider to OFF TRADE INDUSTRY OVERVIEW The next few months will be an directly to the consumer. home entertaining will be a more attractive The UK cider industry is an capitalise on outdoor spaces as a We have seen shoppers become more willing important time to remind option than it was in 2019. Once the COVID important part of both our heritage short-term objective. This, with to part with their money when in supermarkets consumers why cider is the perfect restrictions are fully lifted, and the initial and the rural economy. With 40% Summer fast approaching, to elevate in-home experience. This was seen drink for enjoying at the local, excitement in the on trade wears off, it is likely of cider sales in the hospitality combined with the UEFA Euros across the board in Food & Drink, when a forced sipping in the beer garden and that the off trade will retain a lot of the share sector, the last year has been 2021 round the corner and trade down from the service industry met with accompanying a meal. It is the time it has picked up in 2020. extremely difficult. Cider makers consumers’ pent up desire to a voluntary trade up to branded and premium to remind consumers about pre- are also a valuable part of our return to the trade, it could really products in shops. This trade up is a particularly lockdown cider occasions and help tourist industry, both in terms of provide an extra Summer peak unique trend in a recession, made possible by to rebuild the cider market, attracting visitors to see how cider like we saw in 2018. the closure of the service industry. hospitality sector and tourism.
6 Westons CideR RepoRt 2021 Westons CideR RepoRt 2021 7 MEET THE EXPERTS...
a bigger role to extend its Richard Yarnell take hold as it has in the other reach to more occasions. Category Manager, Beer & Cider categories and I wonder if we Outside of flavour innovation, Mitchells & Butlers need to be prepared to show there isn’t much going on. that cider can be much more Areas such as theatre of serve, There is a strong pent-up demand for the on trade experience and the ability than mass market? Gin dispense innovation and to socialise with friends and family, so I would expect to see some drop-off obviously exploded as a consumer experience at point in direct from producer online sales and a return to the face to face meet-up category, but all segments of of purchase are all once it is safe to do so. I do believe, however, that online shops have given the category benefitted from producers a great way to engage with a new audience so I would expect this opportunities to explore. My this transition. route to continue to be a useful tool in the future. The industry can final point relates to consumer specifically support a strong return to pubs, bars and restaurants once it is Space on the bar is continuing confidence as I believe this has safe to do so and I see cider as a key component in this experience. to be squeezed and with new been impacted over the last 12 Cider helps to elevate the experience and driving visits into outlet will be key brands entering the market, I months, we may find that to re-establishing cider as a core part of the British pub. believe every brand needs to older drinkers are less likely to work hard to stay relevant and return to the pub and therefore demand to make the most of Nina Warren offer customers a reason to it’s important the cider Neil Musson holidays and leisure time to Purchasing Manager Trading Manager – stock it. This relevance needs category stays relevant in become more important. In the David Bremner Wadworth Brewery Beer & Cider to flow through to the end order to appeal to that Director of Marketing longer term, we can see the Molson Coors consumer in order to create younger drinker. Robinsons Brewery The demand for local will grow economy and rising Brewing Company demand and ensure there’s a and working with companies unemployment will impact As we come out of this pandemic we will be seeking to avoid any activity healthy rate of sale. I feel with sustainability high on the LFLs. As the UK is one of the When compared to other which creates crowds through activation or promotions but would prefer a there’s still work for cider to agenda will be key. Expect the world’s largest cider-consuming drinks categories in recent steady trade of smaller groups, couples & families in relaxed occasions. make sense of any of the continuation of premiumisation countries, there is a need to times, we can see that Cider is Therefore, brand owners run the risk of over-complicating 2021 as we only smaller and growing in the short term and the continue to innovate to remain still a relatively need to concentrate on safety and simplicity. subcategories like cloudy / growth of in-home delivery as relevant, whilst other drink underdeveloped category. It haze or rose, ensuring they fit In a crowded market, a focus on quality and ingredients is something to well as ongoing changes to trends grow. Low and No seems still quite two clearly and have a role to play shout about. If you have a cider that is made from locally grown and freshly consumer behaviour. We’re appears to be continuing to dimensional, existing to serve for consumers. pressed apples that are grown in the UK then this should be clearly shared anticipating an initial surge in grow and the focus on health Mainstream and Premium with customers. I can see a period where localism becomes increasingly consumers wanting to “live like and wellbeing, through reduced across Apple and Fruit. We Innovation is another area I important as we seek to bounce back from COVID and navigate the EU we used to” and expecting the calorie intake. haven’t seen premiumisation believe in which cider can play trading restrictions.
8 Westons CideR RepoRt 2021 Westons CideR RepoRt 2021 9 MEET THE EXPERTS...
Tom Foddy Head of Sales & Marketing Wells & Co We find the cider drinkers are very loyal to the category however are willing to try and switch to new brands. Taste is key to all the drinkers and cider must match their expectations for the occasion. We feel drinkers are open to new flavours and variants, and think Martyn Jones growth in flavoured Head of Sales cider on draught will Westons Cider continue this year. Further importance ‘Premiumisation’ as a phrase seems to have been used extensively over the will be given to the years, across many categories, with a multitude of reasons given as drivers. provenance of And while certain premium segments of cider, such as crafted have seen growth, product, be it there hasn’t been the wider total premium category effect, as we’ve seen in both ingredients or locally gin or world beers for example. The opportunity still remains for cider to drive produced. value growth, by ensuring we understand the drinker motivations and new occasions beyond Covid. The long term trends have certainly had a shake up after last year, however I really feel the on trade will come flying back, and with that, guests will want to eat and drink better on the majority of occasions.
10 Westons CideR RepoRt 2021 Westons CideR RepoRt 2021 11 HEADLINES
In total, the UK purchased almost VS 687 million litres of cider last year, OFF TRADE ON TRADE a decrease of 12.2% compared to 2019. CIDER VALUE SHARE 63% 37% The closure of the on trade for much of 2020 had a greater impact on value than on CIDER VOLUME SHARE volume due to the higher £/L. The on trade averages £6.86 per litre compared to 83% 17 % £2.31 in the off trade
In last year’s report the on trade accounted for 65% of cider value and 38% of cider volume. After a year of closures and tiered restrictions, Cider is worth £2.1 billion, we have seen a temporary swing away from the on trade towards the off trade. £ a decrease of 32.1% The off trade accounted for 63% of cider value and 83% of cider volume in 2020.
12 Westons CideR RepoRt 2021 Westons CideR RepoRt 2021 13 TRENDS Some of the major dynamics seen in the cider market, that will be referred to throughout this report, are:
1. 2. 3. 4. 5. 6. A booming A recovering Online / Authenticity Accelerating No & low off trade on trade Delivery & Craft Sub-Categories alcohol cider The closures and restrictions in the on 2021 will be a year of focusing on recovery In both channels we have seen a move In both the on and the off trade the In the off trade in particular we have Although still small this sector continues trade seen in 2020 have temporarily and rebuilding. The 21st of June (at the to online shopping and delivery – crafted segment has gained share of continued to see strong growth in the to grow and gain shoppers. No and low switched many drinkers into the off time of going to press) should herald the whether that be restaurants now cider value. In the on trade crafted went Cloudy (+104.1%) and Rosé (+481.3%) alcohol cider also attracts a more affluent trade. At its highest, household release of all and any restrictions, with all offering takeaways, or brands selling from 12.0% share last year to 13.1%. sub-categories. The launch of shopper than its parent category, and penetration of off trade cider reached outlets including nightclubs fully open. If direct to consumers. Online now has In the off trade Crafted cider now makes Strongbow Rosé this year added scale to with 3.2% of buyers only buying no/low 48.6% compared to 45.7% in the this goes to plan and this date holds, 9.8% share of cider category spend in up 14% of cider category value. this sub-category and the new Henry cider it is working to broaden the overall previous year. Value and volume have the trade will still benefit from the the off trade, up from 6.7% a year ago. These more premium products with Westons Rosé added a more premium shopper base for cider. shown significant growth. all-important Summer season which provenance and heritage attract a higher option. Total Rosé now has 3.2% share includes a big season of sport. £/L than the cider average which is great of cider. Cloudy has 5.9% share. news for the category.
14 Westons CideR RepoRt 2021 Westons CideR RepoRt 2021 15 OFF TRADE
OCCASIONS 7 in 10 Occasion Motivation cider serves With Food The biggest off trade cider drinking occasion is a ‘quiet night in’, The largest, and fastest growing motivation are with food Cider has increasingly been this has increased from 19% of serves a year ago to 21.6% was to ‘wind down or chill out’ at 30.4% of consumed with food in the latest of serves in the latest year. serves. After what has been a stressful year year – up from 66.0% of serves It comes as no surprise that the occasions seeing the largest for many, the wind down has become an to 70.2%. decline in share of serves are: important part of the day. Another motivation ‘Formal meals’ have lost share that has gained share is ‘to spend quality (-2.6ppts) as these tend to be 1. 2. 3. 4. time’ which has gone from 9.2% share of PLANNED SOCIABLE CATCH-UP DRINK A DRINK BEFORE occasions at which you would OCCASION -1.9PPTS AFTER WORK GOING OUT serve to 11%. -2PPTS -2PPTS -2PPTS invite other households. ‘Informal Again it is those motivations associated with meals’ with cider have increased With coronavirus restrictions meaning household mixing has been off the others that have lost share – to bond with from 26.3% to 30.1%. cards for a lot of the year, more sociable and pre-drinks occasions have others (-2ppts), to have a laugh (-2.2%), been less prevalent. Also, with many people on furlough or working from and to feel part of a group (-1.5ppts). home, that after work drink to relax and rewind after a long commute for example might now just be seen as an everyday drink.
ANY FOOD 70.2% QUIET NIGHT IN 21.6% ROUNDING OFF THE EVENING 4.7% TO WIND DOWN OR NONE OF THE ABOVE 5.7% INFORMAL MEAL 30.1% REGULAR/EVERYDAY DRINK 16.6% FRIENDS/FAMILY UNPLANNED 4.6% CHILL OUT 30.4% TO LET GO 5.2% NO FOOD 29.8% STAYING IN AS A COUPLE 12% SPECIAL CELEBRATION 4.2% TO SPEND QUALITY TIME 11% TO BOND WITH LIGHT SNACK 23.4% PLANNED SOCIABLE OCCASION 7.3% BARBEQUE/PICNIC 3.4% TO HAVE A LAUGH 9.7% OTHERS 4.7% DINNER PARTY 8.9% CATCH-UP 6.7% BIG NIGHT IN 2.9% TO HAVE TIME TO RECHARGE FOR MYSELF 8% OR INVIGORATE 2.8% FORMAL MEAL 7.8% NONE OF THE ABOVE 6.1% A DRINK BEFORE GOING OUT 2.9% TO TREAT OR TO FEEL PART DRINK AFTER WORK 5.4% OUTDOOR EVENT 1.7% REWARD MYSELF 7.8% OF A GROUP 2.6% TO REFRESH 6.4% TO HAVE A BREAK 5.7%
16 Westons CideR RepoRt 2021 Westons CideR RepoRt 2021 17 ON TRADE OCCASIONS Occasion Motivation With Food The leading cider drinking occasion remains a ‘sociable ‘To have a laugh’ is again the number one The substantial meal restriction get together’ at 15.9% of all on trade serves. This has fallen motivation for drinking cider in the on trade, will have skewed this for a proportion for the 3rd year running, despite the impact of coronavirus although this has reduced significantly from of 2020 but the trajectory is still upwards from 20.5% of serves in 2018. ‘Catch-up’ (-1.6ppts) and 2019 to 16.4% of all cider serves (-3ppts). for % of cider serves with food (43.7%, ‘break from work’ (-1.3ppts) suffered the largest decreases Interestingly the highest winners have been the +3.1ppts YoY). but again heavily impacted by coronavirus as the social more personal motivations around ‘refresh’, The largest increase has been with distancing and working from home restrictions took hold. ‘time for myself’, ‘to let go’ & ‘to re-charge or ‘sandwich, baguette, panini’ up 3.3ppts invigorate’. Not surprisingly the greatest growth came from ‘business to 10.4% of cider serves and ‘light snack, drink / meal’ as colleagues sought out a local on trade Collectively these account for nearly 1 in 4 cider bar snack’ up 2.5ppts to 10% of serves. venue rather than meeting at the office (+2ppts). serves but it would also suggest that social The infamous Scotch Egg would fall into distancing has had an impact, particularly as the latter category. There remains a latent bonding with others and to feel part of a group opportunity for more work around food- declined by 2.4ppts and 1.0ppt respectively. pairings for cider and encouraging this as a with food occasion.
SOCIABLE GET TOGETHER 15.9% NONE OF THE ABOVE 4% ANY FOOD 43.7% TO HAVE A LAUGH 16.4% TO HAVE A BREAK 7.5% CATCH UP 10.4% GOING CLUBBING 3.9% SANDWICH/ TO WIND DOWN TO REFRESH 6.9% QUIET DRINK 9.3% PART OF ANOTHER OCCASION 3.9% BAGUETTE/PANINI 10.4% OR CHILL OUT 13.1% TO HAVE TIME LIGHT SNACK/ SPECIAL CELEBRATION 7.2% BIG NIGHT OUT 3.4% TO SPEND QUALITY TIME 10.1% FOR MYSELF 6.8% BAR SNACK 10% DRINK AFTER WORK 6.9% BUSINESS DRINK/MEAL 3.3% TO BOND WITH OTHERS 9.7% TO LET GO 5.4% CRISPS/NUTS/ REGULAR/EVERYDAY DRINK 6.8% OUT ON THE PULL/CHATTING UP 3.1% TO FEEL PART OF TO RECHARGE OR BAGGED SNACKS 9.6% GOING OUT AS A COUPLE 6.5% ON A DATE 2.9% A GROUP 8.4% INVIGORATE 4.4% RESTAURANT MEAL 7.3% FAMILY OCCASION 5.9% BREAK FROM WORK 1.8% TO TREAT OR REWARD NONE OF THE ABOVE 3.7% BAR MEAL 6.3 LIVE EVENT 4.9% MYSELF 7.7% NO FOOD 56.3
18 Westons CideR RepoRt 2021 Westons CideR RepoRt 2021 19 CIDER & There has been an increase year-on- 47.4% of cider drinkers who watch year in the proportion of cider serves live sports agree it is worth paying LIVE SPORTS accompanied by food. 42.7% of extra in pubs and restaurants serves are with food compared to presenting an opportunity to further TRADITIONAL PUB - DRINKING PUB 28.9% PUB RESTAURANT 13.2% 34.4% the previous year. The most upsell quality products. This piece looks at the relationship between cider and live sports MODERN PUB/MODERN BAR 12.7% popular food choice is sandwich / FAMILY PUB 7.7% VENUE baguette / panini (14.2%) followed by With pub goers having had limited in the on trade. To get the most accurate reflection of the market, COMMUNITY PUB 7.5% opportunity to enjoy live sports in the TRADITIONAL PUB - OLDE WORLDE 6.4% bagged snacks (11.4%). Further the time period analysed is the year to March 2020, as live sports STUDENT UNION BAR 4.1% showing the importance of live sports on trade in 2020, when restrictions lift occasions have been limited since the first lockdown began on SOCIAL/WORKING MENS CLUB 4.1% to the cider category, the average during 2021 live sports can play a key GASTRO PUB 2.9% role in attracting cider drinkers, 23rd March 2020. WINE BAR 2.7% food and drink spend per occasion is GOLF/SPORTS CLUB/GYM 2% £26.79, +£0.47 more than the average increasing their dwell time, and Cider overtrades during sport-watching occasions, accounting for 9.9% OTHER 7.7% on trade cider occasion. increasing their spend. of serves in the on trade, but 10.8% of serves when watching sport. 52.7% of these serves are draught compared to 44.9% of on trade cider serves, underlining the increased importance of draught cider when watching sport. The overall dwell time for a cider sport-watching occasion is also longer, A note on live sports highlighting the role these occasions play in retaining drinkers in venues and TOP 5 FAVOURITE an opportunity to increase revenue. The average length of the cider sport in the off trade watching occasion is 3 hours and 19 minutes vs 2 hours and 53 minutes A recent YouGov report revealed that cider was the 4th most popular ALCOHOLIC BEVERAGES during the average on trade cider occasion. beverage when watching sports at home. Those buying alcohol to watch From a drinker perspective, whilst older males are the key drinkers during sport at home tend to be male aged 45-54, and the three most important the occasion, we have seen a shift to younger males aged between 35 – 49. factors when buying alcohol from a shop were: This group has gone from 14.5% in the previous year to 18% of serves. STOUT
In terms of venue type, traditional drinking pubs are the heartland for these OR occasions whilst also over indexing were pub restaurants; these two venue types have become more important vs. the previous year in terms of their LAGER ALE 1. 2. 3. RED WINE CIDER GIN share of serves. When watching sport, traditional drinking pubs account for 28.9% of cider serves, and pub restaurants 13.2%. GOOD VALUE TASTE OF QUALITY OF FOR MONEY PRODUCT PRODUCT #1 #2 #3 #4 #5 71% 61% 48% 25 % 17 % 16 % 11 % 6%
20 Westons CideR RepoRt 2021 Westons CideR RepoRt 2021 21 OFF TRADE OFF OFF TRADE MARKETPLACE VALUE % SALES 21.2 2020 was a year of significant growth in the off trade with value sales CIDER CATEGORY increasing by 21.2%, taking the cider category to a value of £1.3bn. VALUE Volume increased by 17.9%. £1.3 The enforced closure of the on trade led to an influx of new shoppers with household penetration hitting a high of 48.6% in July (compared to 45.7% in July 2019). An additional 970,180 shoppers BILLION bought cider in this channel in 2020. Shoppers also bought in greater volumes with average weight of purchase going from 33.9 litres per year to 37.1 litres, an increase of 9.4%. We will also VOLUME % come on to see that crafted cider has continued to outgrow the rest of the market. INCREASE17. 9
The key dynamics affecting off trade cider were: PENETRATION FREQUENCY VOLUME # INCREASED VALUE AND % 1 VOLUME SALES 47.7 12.0 37.1 OF HOUSEHOLDS SHOPPING TRIPS AVERAGE NO. OF LITRES # NEW BUYING CIDER P/A FOR CIDER P/A HOUSEHOLDS BUY P/A 2 SHOPPERS
# SHOPPERS 3 BUYING MORE % % % PREMIUMISATION 7.0 6.2 9.4 # – CRAFTED CIDER 4 GAINING SHARE
22 Westons CideR RepoRt 2021 | OFF TRADE OFF TRADE | Westons CideR RepoRt 2021 23 VALUE SALES CRAFTED CHANGE % % MARKET VS 48.7 MARKET SHARE BY LAST YEAR SHARE BY FLAVOUR SEGMENT
Apple cider continues to hold the largest value share MAINSTREAM PREMIUM Taking a look at our cider segmentation, crafted of the cider market, share has risen slightly from 59.3% continues to be the fastest growing segment and a year ago to 59.9%. Fruit cider has also seen a small share % % has increased share from 12% last year to 14% increase whereas pear cider has dropped to 5% share. 22.8 22.8 of cider category value. In the latest year fruit still has a In contrast the value MAINSTREAM higher penetration than apple, segments have lost PREMIUM showing how important it is for APPLE CIDER share, going from a shopper recruitment and 60% combined 18% to 14% broadening the appeal of the share. Crafted cider has 48% cider category. It is apple an average price per litre however that has the higher of £3.23 compared to 24% average spend with shoppers MARKET value amber at £1.47, SHARE spending an average of £80.61 SHARE BY so this shift is very a year, compared to £38.46 a FLAVOUR VALUE AMBER VALUE WHITE important in terms year on fruit cider. Apple cider is of driving revenue. 10% bought 12.5 times a year, so just % % Mainstream ciders such 14% 4% over once a month, whilst fruit as Strongbow continue FRUIT CIDER -0.5 -7.9 VALUE cider averages 6.5 times a year. to make up almost half 35% AMBER of the category and have CRAFTED VALUE also seen strong growth PEAR CIDER WHITE this past year. 5%
24 Westons CideR RepoRt 2021 | OFF TRADE OFF TRADE | Westons CideR RepoRt 2021 25 YoY TESCO 23% 23.9% OFF TRADE SNAPSHOT PACK ASDA 15% 35.9% FLAVOUR SAINSBURY’S 13% 30.0% FORMAT MORRISONS 12% 37.6%
% % CO-OP 10% 31.3% The cider APPLE CIDER 60 +22.3%* CAN 59 +31.7% ICELAND 2% 15.0% GLASS BOTTLE 29% +14.9% RETAILER FRUIT CIDER 35% +22.9%* WAITROSE 2% 21.9% PLASTIC BOTTLE 10% -2.3% market is % % ALDI 6% 40.2% PEAR CIDER 5 +1.5%* OTHER PACK 2 -16.8% LIDL 4% 15.8% B&M BARGAINS 3% -11.4% worth *YoY *YoY HOME BARGAINS 2% 14.0% The £1.3 OTHER 8% -8.4% +21.2% BIG 4 BILLION YoY supermarkets account for 63% of VOLUME all cider sales, up from 59% a year ago SALES Cider continues to have a % The number CHANGE of shoppers SOUTHERN BIAS Vs SCOTLAND YEAR AGO The average price of +32.2% has increased ...with the 5 ...this is even SCOTLAND cider per litre is £2.31, 11% NORTH by +970k most southern higher for EAST +19% up from £2.25 last year tv regions crafted cider NORTH vs. last year EAST Households in the making up with 77% of 6% YORKSHIRE 61% of cider volume coming LANCASHIRE +17% +14.1% UK purchase an volume sold. from the south. YORKSHIRE LANCASHIRE 10% The average 11% average of 37.1 CENTRAL EAST +17.2% +16.3% household makes WALES Litres of cider CENTRAL EAST WSW 15% 7% +16.3% LONDON shopping 573 WALES +13.5% per year, up 9.4% WSW % OF LONDON 19% trips for of UK TOTAL 10% compared to VOLUME MILLION +17.9% % households last year cider a year BY SOUTHERN YoY buy cider REGION +18% 4 7. 7 SOUTH ERN 9% (Sources: IRI 52w/e 2nd Jan 2021 Kantar 52w/e 27th Dec 2020)
26 Westons CideR RepoRt 2021 | OFF TRADE OFF TRADE | Westons CideR RepoRt 2021 27 KEY TALKING POINTS Cloudy & Rosé Cider Minimum Unit Pricing – Wales Both of these sub-categories were highlighted in last year’s report as being strong areas of growth. On the 2nd of March 2020, This continued in 2020 with cloudy cider increasing cider category value share from 3.5% to 5.9%, a minimum unit price of 50p per PREMIUM and rosé cider going from 0.7% to 3.2% share. unit of alcohol was introduced in Wales. Since this came into force The respective growth rates of 104.1% and 481.3% have outpaced the strong growth in total cider. price per litre has risen 50.5% and volume has decreased by 15.7%. Shoppers are buying less volume No & Low Alcohol Cider per trip and shopping for cider less frequently. However, overall No and low alcohol cider has gone from a value of £17.1M last year to £22.7M in the latest year. A lot of this 32.6% cider spend has increased 26.8% MAINSTREAM CRAFTED increase in spend came from a significant rise in household penetration which increased by 47.4%, meaning 6.4% as the higher price balances out of UK households have now purchased this category. the lost volume.
Fruit really overtrades in this area 50 Cider’s volume losses have been and makes up 70% of no and low predominantly driven by repeat 45 alcohol cider spend. Apple has NO & LOW BEER shoppers purchasing less and some headroom to grow to shoppers switching to other achieve its fair share. 40 categories such as Beer. Shoppers have also switched volume from No and low alcohol cider attracts 35 VALUE AMBER NO & LOW CIDER Value tiers and into Crafted and a more affluent shopper than its NOW & LOW SPIRITS 30 Premium, whilst existing Value parent category suggesting that shoppers purchasing less has VALUE WHITE CIDER these products are expanding the SPARKLING WINE 25 TOTAL NO & LOW ALCOHOL driven the bulk of decline in these BEER & LAGER appeal. 3.2% of buyers only buy NO & LOW SPARKLING WINE NO & LOW STILL WINE products. The Crafted and In Scotland trends initially mirrored Wales however, we have seen the price no and low alcohol cider and have 20 Premium tiers are now attracting per litre of mainstream cider fall and some devaluing of the market in the SPIRITS TOTAL ALCOHOL not engaged with any other cider 45 UNDER AGED % SHOPPER new category shoppers and 2 years since MUP came into force. It will be interesting to see if Wales offering demonstrating the 15 WINE encouraging existing cider maintains the current premiumisation shifts in the category in coming incremental value it is adding. shoppers to add them to their years and avoids falling into the trap of low priced mainstream offerings 10 repertoires. 40 45 50 55 60 65 70 75 80 85 90 devaluing the cider category. % CLASS ABC1
28 Westons CideR RepoRt 2021 | OFF TRADE OFF TRADE | Westons CideR RepoRt 2021 29 CIDER PACK FORMATS OWN BRAND (EXCL THE DISCOUNTERS) In the latest year both cans and glass bottles have seen strong growth. Own brand has not seen the same strong The faster growth of cans however means it has grown share of cider from 55% to 10 packs performed performance as branded over the last year. 59%. Plastic bottles have lost share as shoppers increasingly move away from value Own brand value fell by 4.4% compared to propositions, and also due to the impact on price as a result of minimum unit pricing most strongly with last year, whereas branded value was +23.6%. in Wales and Scotland. value increasing by A key reason behind this decline is likely the reliance The latest year also saw shoppers buying increased volumes of cider due to the closure of the on value propositions within own brand, 92% of on trade. This meant that large packs have had a strong year as cider drinkers stocked up. 50% vs last year, spend is in the value tier. The higher tier offerings 2019 2020 2020 have performed well with crafted at 7% share, 10 pack value increased 50% vs. last year and packs larger than 10 saw a 31.6% increase. while multipacks growing by 6.4% year-on-year. Large pack growth is inhibited by minimum unit pricing which can make packs above 9% 9% 7% 10 unaffordable in Wales and Scotland, so the 10 pack seems to be the happy medium. larger than ten units This presents an opportunity for retailers to evaluate their own brand ranges and look to trade shoppers 10 packs performed most strongly with value increasing by 50% vs last year, while multipacks saw a 31.6% increase OWN BRAND VALUE SHARE up from commodity products to products with larger than ten units saw a 31.6% increase. provenance, heritage, and unique stories. Own brand is also currently predominantly apple OTHER PACK OWN BRAND OWN LABEL CRAFTED OWN MAINSTREAM but fruit at 7% share is seeing some growth, SIZE PEAR FRUIT BRAND OWN BRAND 2% 5% 7% 7% 1% so again there is an opportunity to add excitement
SINGLE and engage shoppers with something different by OTHER PET PACK SIZE 14.2% 10% addressing this undertrade in own brand fruit. LARGER THAN 10 PACK LARGER THAN 10 PACK 31.6% 12%
SINGLES 10 PACK EXCL. 50% PET GLASS PLASTIC PACK OWN VALUE BOTTLES BOTTLES CANS 30% BRAND OWN 10 PACK FORMATS -3% -3% +4% 4 PACK 24.8% FRUIT BRANDS 18% The higher tier SINGLES excl, PET 11.2% PACK FORMATS offerings have SINGLE PET -2.3% 4 PACK OWN BRAND APPLE VALUE OWN BRAND 28% 88% 92% JAN 2020 – JAN 2021 performed well
30 Westons CideR RepoRt 2021 | OFF TRADE OFF TRADE | Westons CideR RepoRt 2021 31 There has been some change in the top ten off trade cider brands with K Cider and TOP 10 CIDER The top ten cider makers remain unchanged compared to last year, TOP 10 CIDER Scrumpy Jack moving down to 11th and 12th. Frosty Jacks has fallen from 8th to 9th combined they account for 90% of total cider value. Heineken after seeing a decline this year. Henry Westons Vintage has seen another year of strong continues to be the number one ranked manufacturer with over growth. Thatchers Haze and Strongbow Rosé are new entrants, highlighting the growth MANUFACTURERS a third of the market (36%), share has remained static year-on-year. BRANDS of the cloudy and rosé sub-categories.
Value Sales Value Sales Value Sales % Value Sales % YoY YoY Change vs YrAgo Change vs YrAgo # # #1 21.0% #6 26.0% 1 18.9% 6 20.3% # # #2 34.0% #7 6.5% 2 14.2% 7 23.8% # # #3 82.4% #8 2.5% 3 55.4% 8 80.9% #4 8.0% #9 4.4% #4 47.7% #9 -13% STRAWBERRY & LIME
# 1.2% # 31.8% # 21.4% # NEW 5 10 5 MIXED FRUIT 10 ROSÉ CIDER
All of the top ten have seen growth this year. However, above the market growth saw Kopparberg, Thatchers and Westons gain share vs. last year. 52w/e 2nd Jan 2021
32 Westons CideR RepoRt 2021 | OFF TRADE OFF TRADE | Westons CideR RepoRt 2021 33 THE TOP 5…
STRONGBOW STRONGBOW ORIGINAL GOLD THATCHERS MAGNERS WESTONS HENRY VINTAGE HAZE THATCHERS STRONGBOW FRUIT DARK KOPPARBERG & LIME STRAWBERRY KOPPARBERG MIXED FRUIT THATCHERS LEMON CLOUDY BULMERS RED BERRIES & LIME #1 #2 #3 #4 #5 #1 #2 #3 #4 #5 APPLE CIDER BRANDS FRUIT CIDER BRANDS Apple cider continues to be the largest part of the cider market Henry Westons Vintage is the only In terms of fruit cider, our top three have stayed the same ...our top three have and has experienced strong growth this year. Strongbow remains as last year’s report. We do have a new entrant into the top 5 with at number one. The only major change compared to last year is exclusively glass bottle apple cider Thatchers Cloudy Lemon cider in 4th place. Bulmers Red Berries stayed the same... that Frosty Jacks has been replaced by Thatchers Haze. Henry has moved from 4th last year to 5th. Westons Vintage is the largest selling glass bottle apple cider in the UK. The other 4 brands have the majority of their sales come from cans.
34 Westons CideR RepoRt 2021 | OFF TRADE OFF TRADE | Westons CideR RepoRt 2021 35 THE TOP 5 CONTINUED…
STRONGBOW STRONGBOW ROSÉ THATCHERS LEMON CLOUDY KOPPARBERG CHERRY WESTONS HENRY VINTAGE CLOUDY CITRUS REKORDERLIG & WATERMELON #1 #2 #3 #4 #5 INNOVATION 2020 saw some really strong new product launches. Strongbow added Broadening the appeal of apple ciders in this way can only be of benefit increased scale to an already growing rosé cider category, and another to the category. There are also 2 citrus products in the top 5 – this more 2 of the top 5 were cloudy ciders. These two sub-categories were refreshing taste profile likely serves as an interesting counterpoint to highlighted in the report last year and are showing no signs of slowing. a market dominated by darker fruits and berry flavours. There are still Just missing the top 5 in 6th place was another rosé product – limited options in the market in terms of citrus flavours so it will be Henry Westons Vintage Rosé. All of the top 5 products appeal to a interesting to see if 2021 brings further new entrants. sweeter palate - it has been interesting to see apple products take on some fruit cues as in the case of rosé.
36 Westons CideR RepoRt 2021 | OFF TRADE OFF TRADE | Westons CideR RepoRt 2021 37 CRAFTED CRAFTED CAN/OTHER FRUIT CRAFTED CIDER 36% Crafted cider is 10% Crafted cider is still predominantly traditionally apple, Crafted cider is the fastest glass bottles however fruit has CRAFTED CRAFTED growing segment in the latest however can now gone from 3% share CIDER BY CIDER BY year, taking its share from 12% 45 makes up 36% of a year ago to 10% FORMAT FLAVOUR of cider category value to 14%. value, compared of value. to 25% share a This segment also has a price year ago. PREMIUM CRAFTED CRAFTED per litre of £3.23 compared to the 40 GLASS BOTTLE APPLE market average of £2.31 so plays 64% 90% The top ten crafted an important role in premiumising the cider category. TOP TEN brands represent 35 The top ten crafted brands represent 82% of crafted category value. All of the top ten have seen growth in 2020. As you can see in the chart shown right, 82% of crafted Crafted cider has a distinct demographic In last year’s report there were just 2 can-led brands in the top ten ranking, we are now up to 3 with the edition category value position at the top end of the affluence of Cloudy Lemon. Aspall Premier Cru has moved from 3rd to 6th place, and Savanna has dropped out of the top ten. scale, and with a slightly older age 30 profile than total cider. TOTAL CIDER
MAINSTREAM
25
Crafted cider CRAFTED is the fastest CIDER
20 WESTONS HENRY VINTAGE THATCHERS SOMERSET HAZE ROSÉ THATCHERS THATCHERS LEMON CLOUDY KATY THATCHERS PREMIER CRU ASPALL OLD ROSIE WESTONS VINTAGE THATCHERS DRAUGHT ASPALL WYLDORGANIC WOOD growing segment % SHOPPER AGED UNDER 45 UNDER AGED % SHOPPER in the latest year VALUE #1 #2 #3 #4 #5 #6 #7 #8 #9 #10 15 35 40 45 50 55 60 65 In convenience, more than 1 in every 5 single glass % CLASS ABC1 bottle ciders bought is a Henry Westons Vintage
38 Westons CideR RepoRt 2021 | OFF TRADE OFF TRADE | Westons CideR RepoRt 2021 39 CONVENIENCE CIDER RETAILERS The convenience channel also did well in 2020 with volume Pint cans overtrade in this channel - 4x568ml ONLINE growth of 19.0% compared to the 17.9% growth seen in total has 16% share of 4pk cans in convenience market. Symbol group retailers (examples include Londis and compared to 11% in total market One of the biggest grocery trends in the past year has been the Spar) increased volume by 24.7% in the latest year. growth of online shopping, this has also been seen within the cider The strength of the convenience channel is even more apparent when category. Cider sales online saw growth of 81.4% year-on-year, looking at the fastest growing cider segment, crafted. Growth is in triple so they are growing from a smaller base. However, if they continue to grow taking online share from 6.7% to 9.8% of category spend. figures, with independents seeing volume growth of 153.4% year-on-year. at these rates, we will begin to see the gap narrow. This can only further Independents and Symbols undertrade in crafted cider in terms of share at support price per litre in the convenience channel which is already averaging 8.0% and 8.6% respectively (whereas in total market crafted share is 14.2%) £2.40/L so £0.09 above total market.
TOTAL 21.2% TOTAL 48.7% MARKET 17.9% MARKET 49.8% % CHANGE VALUE SALES MAJOR 19.8% MAJOR 35.7% 6.7% 9.8% MULTIPLES 16.1% MULTIPLES 36.6% % CHANGE VOLUME SALES YEAR TO YEAR TO 19.7% 35.0% SUPERMARKETS SUPERMARKETS 29 DEC 2019 27 DEC 2020 16.2% 35.8% 21.8% 70.3% CONVENIENCE CONVENIENCE 19.0% 76.5% ONLINE SHARE OF CATEGORY SPEND 34.7% 75.7% FORECOURTS FORECOURTS % OF ALL RETAILERS 30.0% 78.7% CONVENIENCE 18.8% CONVENIENCE 40.1% MULTIPLES 14.4% MULTIPLES 40.4% 24.4% 110.3% SYMBOLS SYMBOLS 24.7% 129.6%
INDEPENDENT 20.3% INDEPENDENT 123.8% Cider sales online % GROCERS 12.3% GROCERS 153.4% saw growth of CIDERCONVENIENCE PERFORMANCE BY STORE CONVENIENCECRAFTED CIDER CHANNELS BY STORE 81.4 IRI CHANNELSTotal off trade- 52 w/e 02nd Jan 2021 – crafted IRI: 52 w/e 02nd segment Jan 2021
40 Westons CideR RepoRt 2021 | OFF TRADE OFF TRADE | Westons CideR RepoRt 2021 41 CIDER RETAILERS CIDER SHOPPER DEMOGRAPHICS RETAILER CIDER MARKET SHARE BY RETAILER VS TOTAL GROCERY SHARE The demographic profile of the cider shoppers in each retailer B&M have the least affluent cider shopper. Then on the bottom right we The big 4 retailers are key channels for cider with a high B&M and Home Bargains have a lower share than in last year’s report. forms some interesting clusters. have the higher affluence shoppers, it is no surprise to see Ocado, Waitrose, market share – Asda and Morrisons overtrade on cider This is perhaps due to shoppers limiting their store repertoire for and M&S with similar shoppers as both Waitrose and M&S have delivered groceries during the past year and being more likely to do a big compared to their share of total grocery. In the younger and less affluent quadrant (top left) we have those retailers through Ocado. Sainsburys also fits into this older, more affluent quadrant. supermarket shop than lots of little trips. Potentially cider is losing associated with great value for money. Aldi and Asda have the highest The Co-op performs particularly strongly on cider with 9% share of cider out on unplanned impulse purchases which are picked up alongside proportion of shoppers aged under 45. On the bottom left we have Tesco, Morrisons, and Lidl sit centrally close to the total cider average compared to 5.2% share of grocery. Independent retailers also punch shopping for other items in these variety stores. an older age profile, and this is where convenience stores and B&M fit. with a broader appeal. above their weight in terms of cider share, highlighting the importance Ocado has been included for the first time this year as online retail gains of the convenience channel to the cider category. share, cider still undertrades compared to their grocery share but it will be interesting to see how this has progressed in next year’s report. 40 24 22.9
35 TOTAL GROCERY ASDA ALDI TOTAL CIDER 30 15.1 13.4 TESCO 12.5 HOME BARGAINS LIDL 12.2 11.7 MORRISONS 25 9.9 9.5 TOTAL CIDER 6.9 SAINSBURYS OCADO 6 5.5 20 5.2 5.4 THE CO-OPERATIVE 4.6 4.1 2.7 3.3 B&M 2.2 1.9 2.4 1.6 INDEPENDENT & SYMBOLS 1.2 1.2 0.9 15 WAITROSE 0.5
MARKS & SPENCER LIDL B&M ASDA ALDI 10 TESCO
% SHOPPER AGED UNDER 45 UNDER AGED % SHOPPER OCADO 30 40 50 60 70 80 90 THE CO-OP WAITROSE SAINSBURYS MORRISONS INDEPENDENTS % CLASS ABC1 AND SYMBOLS HOME BARGAINS MARKS & SPENCER Kantar | Purchase Panel | 52 w/e 27th Dec 2020 Kantar | Purchase Panel | 52 w/e 27th Dec 2020
42 Westons CideR RepoRt 2021 | OFF TRADE OFF TRADE | Westons CideR RepoRt 2021 43 OFF TRADE RECOMMENDATIONS Typically, a Convenience store will have a 2.5 metre refrigerated unit for beers, Fruit cider is 34% of overall cider, and so should take up approximately The average UK supermarket has four bays for a cider fixture, and therefore the While crafted apple 330ml cans offered newness and excitement within the wines and cider, and cider will command approximately only one third a third of the available space. Newness can still be found in the developing sub recommendations are based on four bays of cider. supermarket ranges for the past few years, these listings should be limited of the space available. Space remains a premium for Convenience, category of rosé. A rosé should be favoured over pear cider given its continued Apple cider is still the dominant cider type, and this should be reflected in the to only the best sellers. Newness going forward can be found within rosé, but we know this channel is key for cider, so getting it right is important. decline. Pear cider should only be included where space permits or if there is ranging with approximately two thirds of the space. While giving the shopper several lines should be considered as the sub-category develops and No and low alternatives are no longer reserved just for big stores, customer demand for it in that particular store. choice is always key, avoid duplication, particularly within the fruit flavours of shoppers discover it. Expecting to see the further development of citrus and many shoppers will expect low alcohol variants, for apple and fruit. cider, and increase facings of the best performing lines to reduce out of stocks. flavoured ciders, and inclusion of these may add variety For no and low, within the big stores, shoppers will now expect a wider selection and so space can still be afforded within the cider fixture,
even if there is a separate main ‘No and Low Zone’ elsewhere in store. RECOMMENDED CONVENIENCE FIXTURE RECOMMENDED FOUR BAY FOR A 2.5 METRE REFRIGERATED UNIT SUPERMARKET CIDER FIXTURE BAY 1 BAY 2 BAY 3 BAY 4 BEST BEST SINGLE BOTTLED SINGLE BOTTLED CRAFTED CIDERS CRAFTED CIDERS SINGLE BOTTLED UNIQUE & DISTINCTIVE WINE BOTTLED CRAFTED CIDERS BEERS FRUIT CIDERS BRANDS & FORMATS AND/ e.g. HENRY WESTONS VINTAGE E.G. HENRY WESTONS E.G. HENRY WESTONS VINTAGE VINTAGE OR WORLD CIDER OPTIONS
BETTER PREMIUM BOTTLED AND LOW ALCOHOL APPLE BETTER SINGLE BOTTLED SINGLE BOTTLED 4 PACK BOTTLED CANNED CIDERS VARIANT WINE BEERS MAINSTREAM/PREMIUM MAINSTREAM/PREMIUM FRUIT CIDERS NO AND LOW APPLE CIDER e.g. KOPPARBERG OR e.g. STOWFORD PRESS CIDERS CIDERS E.G. KOPPARBERG & OLD MOUT LOW ALCOHOL E.G. BULMERS E.G. BULMERS REKORDerLIG
4 PACK CANNED CIDERS – BOTH APPLE 4 PACK CANNED 4 PACK CANNED 4 PACK CANNED 4 PACK CANNED WINE & FRUIT CIDER BEERS MAINSTREAM CIDERS MAINSTREAM CIDERS FRUIT CIDERS FRUIT CIDERS e.g. STRONGBOW EG. STRONGBOW E.G. STRONGBOW GOOD GOOD E.G. STRONGBOW E.G. MAGNERS DARKFRUIT DARKFRUIT
LARGE PACK MAINSTREAM – APPLE LARGE PACK CRAFTED MULTIPACK MAINSTREAM MULTIPACK MAINSTREAM MULTIPACK FRUIT CIDERS WINE & FRUIT BEERS CIDERS CANNED CIDERS & PREMIUM BOTTLED E.G. STRONGBOW e.g. STRONGBOW E.G. HENRY WESTONS E.G. STRONGBOW & CANNED CIDERS DARKFRUIT MULTIPACK E.G. BULMERS & MAGNERS & KOPPARBERG
44 Westons CideR RepoRt 2021 | OFF TRADE OFF TRADE | Westons CideR RepoRt 2021 45 47 of GB consumers would feel feel would consumers of GB pubs, bars in visiting confident had they once & restaurants been vaccinated personally strongly of GB consumers to wait “can’t that they agree and 59% agree, go out again” with just 18% disagreeing. comfortable of those who feel secure visiting coronavirus 18-54 between aged are venues agree of GB consumers that pubs, bars and restaurants their to contribute positively being and mental health well
On TRADE | Westons CideR RepoRt 2021 % % % % 59 59 26 66
REBUILDING BACK TO GROWTH TO BACK REBUILDING tiers, geographical lockdowns, national of a backdrop Against sector, uncertainty the hospitality in continued and curfew a latent with consumers amongst positivity of an is air there demand go to out. Consumers’ concerns surrounding coronavirus the high reached haven’t are but high relatively GB of 26% 1.0. Lockdown of stages the early during levels their with up catching to forward are looking consumers to in going out returns confidence before It will be sometime is driving confidence, vaccine but the impact of the levels pre-coronavirus and will be vaccinated are all the priority groups that particularly now been vaccinated. have themselves the consumers once further boosted most looking are GB consumers the No 1 venues at 41% are Restaurants night bars at 23%. Late second visiting again, with pubs falling to forward post visiting to forward most looked venues the lowest are and nightclubs (3%). 3.0 Lockdown of it weeks few within the first a venue to return would 51% said they of in the first week a venue to return would and nearly a third reopening the on trade to about returning relaxed pretty who are Those it reopening. and higher younger male & female, balanced evenly typically pretty are out. spenders on eating and drinking base who of their customer the highest proportion have Drink led venues allowed. are as soon as they return to comfortable are friends, with family second at 20%. second family with friends, GREEN SHOOTSGREEN Westons CideR RepoRt 2021 | On TRADE
ON TRADE 46 TEN TRENDS IMPACTING ON TRADE DRINKING IN 2021 As the on trade re-opens to a challenging and new environment here is a guide from CGA on top trends impacting consumer behaviour over the next 12 months
1. Changing Consumer Needs 3. Polarisation Research has shown since venues re-opened in 2020 that elements have moved through this hierarchy of needs. Previously elements such as safety, When consumers were asked about value and good service were seen to be essential and ethical choices elevated experiences. What took these to the top tier were new, often exclusive the attributes that had increased in elements, resulting in aspirational on premise experiences. However, technology solutions for payments and healthy options have moved from being importance for drinks the most selected nice to have to essential, while community links also shifted down the hierarchy from exceptional to elevating. In turn, good atmosphere and value option was “good value”, followed by moved from being essential to nice to have as people became more safety conscious. “high quality”, emphasising the 4. Experimentation & Trust polarised nature of consumer drinks Traditionally the on trade has been viewed as a nursery for choices. 2.Localism innovative and experimental consumers. 62% of sales for the Premiumisation, an often 21% of GB consumers strongly agree for the top 10 NPD launches from 2018 – 2020 came through glibly quoted and they plan to treat themselves when the On Trade channel. However the changing hierarchy of A new misunderstood expression, they go out to eat or drink again, with needs is shifting the balance between trial & trust. Drinks experience PRE-CORONAVIRUS EXCEEDS EXPECTATIONS has morphed and has now 60% of GB consumers agreeing with menus may be pared back, the balance will inevitably shift Community given greater depth to this. Interestingly 87% of those who from quantity to quality. Exclusivity links GLOBAL HIERACHY “localism”, “support local”, plan to go out as much as possible will OF NEEDS ON New or different food/drink choices “trust local”. 30% of British treat themselves, building on the trend on premise consumers say during lockdown that treating and Ethical values PREMISE Premium/high that it is now more buying more premium products can quality alcoholic important that the drinks only continue well into 2021. 5. Health Extensive range NICE TO HAVE drinks they choose are local, Healthy options of drinks The coronavirus has intensified British or traditional. Local Premium Mainsteam ciders e.g demand for well-being choices, Use of technology for payment Value for money sourcing of apples is an Stowford Press are an affordable trade expect no and low and the likes important measure of up from mainstream ciders and enhance Good service of hard seltzers to continue to authenticity in many the overall draught experience. Clean toilets Quality food gather momentum. / facilities offering Knowledgeable staff ESSENTIAL ciders, particularly at Friendly A venue where A good atmosphere Westons Cider. staff I feel safe Value for experience / ambience
PRE-COVID 19 GLOBAL HIERACHY OF NEEDS ON PREMISE
48 Westons CideR RepoRt 2021 | On TRADE On TRADE | Westons CideR RepoRt 2021 49 ON TRADE DRINKING TRENDS CONTINUED… 6.Ethical 8 . Shifting Needs for Differing Demands Occasions Linked to the super-trend of Upon re-opening in 2020, the Government implemented a ‘with food’ restriction, increased transparency, and so all occasions were food led. If this approach does return then appropriate community and principled pairings or meal deals will be pivotal to capitalise on this. There is also an choices, ethical demands expected return of treat occasions with a pent up demand to celebrate missed initially took a back seat as occasions. 67% of consumers say the channel is where they go to celebrate. safety became paramount. Business leader research suggests that ethical 9.Impact of Technology engagement will become a more important on Path to Purchase consideration for them in Technological changes will affect consumer decision making, particularly as customer terms of BWS choices. interaction with bar and waiting staff is limited. The expanding use of QR codes, pre-ordering and pre‑paying bring a switch of focus on the path to purchase and may 7.Social Currency facilitate earlier opportunities to engage with consumers. 2 in 5 consumers in GB state that they would prefer to use technology to book, FOMO (or fear of missing out) trend has order and pay then interact with staff, potentially limiting traditional path to purchase naturally progressed, social currency is routes and amplifying the importance of the likes of digital menu listings. quickly becoming central to all out of home DID YOU KNOW experiences. 18-34 yr consumers in GB plan 1 in 2 consumers find the idea of “being gifted (or gifting) someone a hospitality experience to visit all of the new / trendy Instagrammable such as a restaurant voucher or cocktail masterclass to be appealing. Clearly shows consumers venues they’ve missed out on when 10.Blurring On & Off Trade Premises are looking forward to on premise visits resuming post Lockdown 3.0 permitted again. Particularly cocktail focussed The rapid growth of home delivery is set to continue as the demand for restaurant quality venues as they are difficult to achieve at food and pub and bar quality drinks at home heightens. Research is suggesting that home yet look amazing on Instagram. delivery occasions are supplementary rather than combative to on premise occasions.
50 Westons CideR RepoRt 2021 | On TRADE On TRADE | Westons CideR RepoRt 2021 51 “EAT OUT TO HELP OUT” ON TRADE RECOVERY Running between 3rd - 31st 56% of consumers felt more confident in eating and THE SUMMER CIDER SEASON August 2020, participating drinking out due to EOTHO, with a further 41% feeling venues offered 50% discount about the same confidence, overall a significant boost The on trade reopening, restrictions being relaxed and Cider steals share from beer on food and non-alcoholic in net confidence levels. In the two weeks following the scheme (early and mid-September) outlets saw 92% of the confidence returning to drinkers will coincide with the Summer during the Summer months, drinks to eat or drink in cider season for the UK. Synonymous with the Summer months, (up to a max of £10.00 per food/drink sales compared to the August average, showing confidence remained % % diner) every, Monday, and consumers were still actively visiting hospitality venues. The devastating despite many attempts to extend the occasionality of cider with impact of reduced sales then arrived with the introduction of the 10pm curfew, 10.5 to 12.0 Tuesday & Wednesday. mulled and winter cider cocktails, it really is all about warm Collectively hospitality table service only & the wearing of face masks when moving around venues on Summer days and the quenching refreshment of a cider. claimed a massive £849m 24th September. 31% of GB consumer state they go to pubs, bars & restaurants through the scheme. less following the new measures and a further 22% would stop visiting entirely. Mainstream apple, while pretty much an always-on cider, is far less reactive But looking below the surface it’s possible to add some science to the effect than Fruit & more niche Crafted ciders. of the seasons on the sub-segments of cider and offer up some efficient From a venue perspective these effects are more marked in high street range management to maintain cider ROS and bring incremental added value. pubs than community pubs where the swings are more dramatic on the % £ share of cider. 61 of total GB consumers would FRUIT SHARE PEAKS IN THE SUMMER MORE REACTIVE THAN COMMUNITY PUBS make use of the WHILE CRAFTED PEAKS AUTUMN/WINTER - BIG SUMMER PEAKS FOR FRUIT scheme if it was TOTAL GB HIGH STREET PUB 50% 14% 48% 18% OCT 2019 OCT 2018 JUNE 2019 reintroduced JULY 2018 JULY 2018 45% 16% 12% 46% 40% 14% 35% 10% 44% 12% 30% 8% 10% 25% 42% 6% 8% 20% consumers used 40% 6% 7 in 10 15% 4% 4% 10% “Eat out to Help Out” in 2020 and 38% DID YOU KNOW 2% 5% 2% a massive 89% of these would make National coronavirus cases did not show a 0% 0% 36% 0% rapid rise in mid to late August during use of this if reintroduced in 2021 25/03/201722/04/201720/05/201717/06/201715/07/201712/08/201709/09/201707/10/201704/11/201702/12/201730/12/201727/01/201824/02/201824/03/201821/04/201819/05/201816/06/201814/07/201811/08/201808/09/201806/10/201803/11/201801/12/201829/12/201826/01/201923/02/201923/03/201920/04/201918/05/201915/06/201913/07/201910/08/201907/09/201905/10/201902/11/201930/11/201928/12/201925/01/202022/02/202021/03/2020 25/03/201722/04/201720/05/201717/06/201715/07/201712/08/201709/09/201707/10/201704/11/201702/12/201730/12/201727/01/201824/02/201824/03/201821/04/201819/05/201816/06/201814/07/201811/08/201808/09/201806/10/201803/11/201801/12/201829/12/201826/01/201923/02/201923/03/201920/04/201918/05/201915/06/201913/07/201910/08/201907/09/201905/10/201902/11/201930/11/201928/12/201925/01/202022/02/202021/03/2020 EOTHO. The rise in cases accelerated from Fruit £ Share of Cider Crafted £ Share of Cider Fruit £ Share of Cider Crafted £ Share of Cider early September onwards. UK Hospitality Safe Re-opening of Hospitality, CGA Strategy 12th Feb 2021 This year, more than ever, as we look towards restrictions easing it’s really important that cider is high on the priority list to capture peak Summer trading with brands and formats that consumers trust. With the added bonus of live sports back this Summer, timings and occasions will be perfect to cement cider’s credentials as the drink of Summer.
52 Westons CideR RepoRt 2021 | On TRADE On TRADE | Westons CideR RepoRt 2021 53 ON TRADE MARKETPLACE As we exit 2020 against a rollercoaster of uncertainty; closures, openings, stop-start restrictions, Consumers are continuing to elevate their draught cider choice substantial meals, takeaways and deliveries, the on trade has contracted by 5.1% and recorded a net loss of 5,975 hospitality sites, triple that of 2019. 2020 ON TRADE as share moves from Mainstream to more Premium brands VOLUMES SPLIT Cider has really performed no better or no worse than other BWS segments from a volume perspective, DRAUGHT APPLE 70.1% although RTD’s have once again seen the great decline (-67.8%). Value has held stable and, in some instances, DRAUGHT FRUIT 29.9% PACKAGED APPLE 25.4% has shown to be marginally outperforming volume as consumers continue to elevate their drinks choices. PACKAGE FRUIT 71.6% PACKAGED PEAR 3% From a value in December 2019 of £2.01 billion the cider market at December 2020 is valued at £783.2 million, GOOD BETTER BEST a drop off of some -61.1%. From a pint-for-pint perspective value has been maintained and has shown a marginal increase of 4p per pint to £3.90 for the average pint of draught cider. 54.1% OF TOTAL DRAUGHT APPLE 36.5% OF TOTAL DRAUGHT APPLE 9.4% OF TOTAL DRAUGHT APPLE -1.0 ppts YoY Average RSP £3.49 +0.8ppts YoY Average RSP £3.87 +0.2 ppts YoY Average RSP £4.25 DRAUGHT APPLE IS DECLINING SLIGHTLY AHEAD MAINSTREAM PREMIUM MAINSTREAM CRAFTED OF DRAUGHT FRUIT, SO FRUIT GAINED SHARE APPLE APPLE APPLE Functional brands. Trade-up brands with greater consumer The previous growth of draught fruit, although potentially masked by Premium taste & profile experiences. Commodity bases & reliable. category engagement. Authenticity, taste the impact of COVID-19, has begun to plateau and move in a downwards Highly engaged consumer looking Little consumer category engagement & provenance are key purchase drivers trajectory. Strongbow Dark Fruits is still the market leader with 70% share, Draught fruit still offers an opportunity for new discoveries a reduction of 2.6 ppts from December 2019 as new draught fruit entrants join the market and become established, including among others Old Mout to add value as consumers are increasingly Berries & Cherries, Cornish Rattler Berry & Stowford Press Mixed Berries. looking to trade up with elevated With an increase in average price per pint from £3.56 to £3.65, draught fruit drinks choices still offers an opportunity to add value as consumers are increasingly looking to trade up with elevated drinks choices. Cloudy ciders are becoming an emerging sub-segment in the on trade and now represent a fraction under 9% of the total draught apple category. The market leader is Thatchers Haze, which has maintained its distribution (-10.2%) , despite the closures, better than Strongbow Cloudy (-17.3%). MORE CRAFTED APPLE BRANDS ARE As we have seen over a number of years packaged cider continues to decline with a massive £392.9m wiped from this category in 12 months. Yes, mainly GAINING SHARE FROM MAINSTREAM APPLE attributable to coronavirus but it’s normalised decline would have boosted this further. Declines have been across all sub-segments; apple, fruit & pear. Despite a plethora of packaged fruit variants entering the market there has been little innovation to bring dynamism back to the category from either an apple or Mainstream apple has an average RSP of £3.49 per pint. Premium and Crafted brands now account for 46% share of draught apple cider, and combined they attract fruit perspective. Although Rosé has begun to develop as an off trade sub-category and offers an opportunity to bring something new to the fridge to capture the an average RSP of between 38p to 76p more than Mainstream. “pink interest” yet in a less sweet and confectionary way. Currently valued at £42.5m, in growth +481.3% YoY and forging a 3.2% share of total cider.
54 Westons CideR RepoRt 2021 | On TRADE On TRADE | Westons CideR RepoRt 2021 55 YoY BAR 3.3% -65.5% ON TRADE SNAPSHOT BAR RESTAURANT 3.4% -61.5% FLAVOUR TENURE CASUAL DINING 1.3% -66.9% COMMUNITY PUB 27.9% -58.9% APPLE CIDER 60.1% -60.8% FREE TRADE 45.4% -63.3% FOOD PUB 20.5% - 59.1% FRUIT CIDER 39.2% -62.28% MANAGED 30.4% -61.1% VENUE HIGH STREET PUB 15.5% 61.7% % % ON TRADE... PEAR CIDER 0.7% -71.7% NON-MANAGED 24.2 -57.6 HOTEL 4.6% -65.8% LARGE VENUE 1.7% -73.5% NIGHTCLUB 0.7% -75.0% RESTAURANT 3.3% -58.5% 77.6% SPORTS & SOCIAL 17.8% -63.0% £783.2 VOLUME -22.4% draught serve YoY is spent cider in the SHARE VOLUME On Trade -61.1% SALES IS... The average on trade % CHANGE % Vs outlet sells 13.1 hls YEAR AGO 22.4 SCOTLAND The average price per pint of -65.1% of cider per year, -66.2% SCOTLAND packaged serve YoY 6.3% cider is , +£0.04 vs last year NORTH £3.90 EAST % -61.2% NORTH EAST 5.9% YORKSHIRE -53.7 LANCASHIRE -61.4% -62.3% % YORKSHIRE LANCASHIRE 10.5% There are 86,909 10.8% 72.5 CENTRAL EAST -59.6% VALUE cider distribution -60% -59.8% draught serve WALES YoY CENTRAL EAST 114 16% 6% -65% LONDON SHARE points (apple & fruit) -62.6% WALES % OF 5.6% LONDON IS... TOTAL 13.8% MILLION DOWN % % VOLUME litres of cider were purchased -61.5% BY SOUTH & 27.5 REGION SOUTH SOUTH EAST WEST -59.3% -64.6% -16.7 SOUTH & -59.7% packaged serve SOUTH SOUTH EAST YoY WEST 10.3% 14.8%
56 Westons CideR RepoRt 2021 | On TRADE On TRADE | Westons CideR RepoRt 2021 57 THE TOP 5 DRAUGHT CIDERS... DRAUGHT APPLE CIDERS DRAUGHT FRUIT CIDERS STRONGBOW THATCHERS GOLD STOWFORD PRESS MAGNERS THATCHERS SOMERSET HAZE STRONGBOW FRUIT DARK CARLING FRUITS BLACK MAGNERS FRUIT DARK OLD MOUT BERRIES & CHERRIES PRESS KINGSTONE WILD BERRY #1 #2 #3 #4 #5 #1 #2 #3 #4 #5
While in decline pre-coronavirus (March 2020 volume -6.0% & value Of note, Thatchers Haze has replaced Somersby at #5 as the trend Pre-coronavirus, draught fruit cider was The top 5 draught fruit brands represent 26.6% -3.6%) apple at December 2020 remains the dominant variant and for contemporary cloudy ciders continues. beginning to edge backwards from a volume of total draught and a commanding 89% of total has marginally edged ahead of draught fruit in terms of share. perspective but as we saw newer, more draught fruit cider. Switches for positions The top 5 draught fruit Interestingly, together the top 5 draught apple ciders represent premium variants enter the category value #4 and #5 have both brought challenges for brands represent The top 5 draught apple ciders represent 50% of the total draught 71.3% of the draught apple cider, down from 76% YoY. Outside of remained in growth. (March 2020 volume Strongbow Dark Fruits from both Old Mout volume, a shade less than the previous year as we see more smaller the top 5, Aspall Cyder has continued to grow and Carling apple -1.8% and value +2.1%). Berries & Cherries and Kingstone Press 26.6% of total draught brands, particularly crafted gaining volume. cider has declined further. Wild Berry, both of which have grown significantly YoY.
58 Westons CideR RepoRt 2021 | On TRADE On TRADE | Westons CideR RepoRt 2021 59 THE TOP 5 PACKAGED CIDERS CRAFTED CIDER %
Without an exact definition of Crafted cider, this sub-segment is broadly open 43 to interpretation but from our perspective it’s true definition lies in authenticity, of consumers will provenance & a cidermaker’s skill. continue to drink As we’ve seen consumers are more than ever making informed choices on their drinks, premium products elevating broadly across all categories and really becoming loyal to those brands they’ve sampled, trialled and enjoyed during lockdown. from lockdown as restrictions ease and OOH drinking returns
KOPPARBERG & LIME STRAWBERRY KOPPARBERG MIXED FRUITS MAGNERS ORIGINAL REKORDERLIG & LIME STRAWBERRY BULMERS ORIGINAL In the on trade crafted went # # # # # from 1 2 3 4 5 12.0% Packaged cider has been in decline for a number of years, driven Fruit remains the dominant share at 71.6%, apple 25.4% and pear share last year particularly by packaged fruit as emphasis has switched to the front just 3%. Heavyweight packaged fruit declines continue at -65.1%, of the bar and draught formats. 2020 sees this trend continue with with apple faring marginally better at -64.3%, driven largely by % volume declines of -65.1% across the whole packaged category. the growth of Magners Original as it jumps from #4 to #3. to13.1 Together Magners Original & Bulmers Original dominate the packaged apple category at 64.9% volume share.
60 Westons CideR RepoRt 2021 | On TRADE On TRADE | Westons CideR RepoRt 2021 61 BAG IN BOX The bag-in-box format is set be the star of our exit from Lockdown 3.0 and head towards the Summer months. Sometimes an overlooked format by outlets, it offers benefits for both the venue and for the consumer. THE VENUE THE CONSUMER • A flexible format, available in both 20L (35 pints) • Provides the ideal opportunity to try and 10L (17 pint boxes) and explore something different • Multiple options on dispense from handpulls, • Gives the chance to be able try more regional the chiller or ambient for the more traditional and local ciders from makers who possibly cider drinkers wouldn’t have had the reach previously • Offers little risk compared to a keg or cask. • Plays to the need for social currency as consumers No technical service issues around installation try and become “the first to discover” and share and a much longer shelf life than cask. 12 months on social. unopened and 6-8 weeks once opened, ensuring a consistent great taste • Provides a huge choice of styles to create a compelling reason to visit. Nationally recognised traditional ciders such as Old Rosie & Stans plus a whole host of smaller niche cidermakers with single varietal, cloudy, organic, fruit flavours and much more. • Use to help ranging over the Summer months to gauge interest and keep the most well loved BiB’s on the bar permanently through the autumn and winter months as attention moves from fruit ciders to something more characterful and engaging. • Offers an opportunity to add value as the average price of a craft cider is more than 10% higher than a mainstream apple cider
62 Westons CideR RepoRt 2021 | On TRADE On TRADE | Westons CideR RepoRt 2021 63 ON TRADE RECOMMENDATIONS DRAUGHT CIDER PACKAGED CIDER From an outlet perspective it’s wise to consider the overall tap picture & any macro trends in a pre-coronavirus world when looking to make any credible Although packaged ciders have historically been in decline for a number of years, they still represent an important recommendations in the draught cider category. feature of any fridge planogram and in particular when considering how to maximise fridge profitability based across the whole BWS category. As pubs reopened on 4th July 2020 against a backdrop of a reduced draught range due to operational challenges, regional tiers, pub closures and the 10pm curfew, tap numbers have been adversely affected and it would be misleading to draw any conclusions from this. A well defined packaged cider range can complement front of bar brands, offering both discovery formats from a consumer perspective and also adding value e.g the opportunity from new emerging categories such as Rosé.
Comparative ROS NUMBER OF FRIDGE SHARE OF between light & dark VOLUME TRADING nights: FACINGS FACINGS NO OF TAPS IN AN OUTLET: 1 TAP 2 TAPS 3 TAPS % Change -10.9% +7.8% -3.0% August average ROS LAGER 17.3 4.20% 39% +0.8ppts 54.10% Over-trade % Share of UK universe 37% 43.6% 19% (hls / per outlet / pa): CIDER 10.1 0.10% 22.80% -0.4ppts 26.60% Over-trade [CGA Strategy, On Premise Measurement Service, P2 2020) draught apple 19.8 hls, RTD 7,1 2.70% 15.90% +0.1ppts 9.20% Under-trade More pubs now stock more than 1 draught cider, with 2 draught taps now becoming the most common draught fruit 15.9 hls scenario in outlet. Just slightly less than 1 in 5 pubs still stock a broad range of ciders, although this has ALE 6.6 -2.50% 14.90% -0.7ppts 7.90% Under-trade declined by 3% overall. March average ROS STOUT 3.3 4.00% 7.30% +0.1ppts 2.20% Under-trade As we’ve highlighted previously, seasonality plays a major role in the dynamic between draught apple (hls / per outlet / pa): & fruit ciders. Draught fruit ciders play strongly in a light night occasion whereas more characterful apple ciders appeal in a dark night occasion. ROS and revenue can be maximised by a careful interplay draught apple 19.3 hls, of the two cider formats. Potentially even rotating out a draught fruit cider in late August “in favour draught fruit 14.6 hls of a crafted apple cider. Cellar space will always be an underlying consideration but consumer appeal and ultimately maximising profitability will need to be added to the mix.
64 Westons CideR RepoRt 2021 | On TRADE On TRADE | Westons CideR RepoRt 2021 65 Pre-coronavirus, online selling was still a relatively small, yet a very fast growing channel overall. Alcohol within online selling, lagged behind many other categories in terms of participation, but otherwise E-COMMERCE HAS CHANGED e-commerce can be categorised as well established in the UK; it has been around for several decades through both the grocers and digital pureplay offerings. CUSTOMER & SHOPPER BEHAVIOUR Before 2020, many of the main grocers reported low shares of between 5-10% of sales being online for alcohol categories. While there has been many Direct to consumer (DTC) offerings such as subscription clubs and brands dabbling with selling direct, it’s probably fair to say that this channel had less focus and investment before 2020.
Alex Heffernan Senior Insight Manager Kantar Shopper Snapshot… IRI “It is hard to ignore the impact COVID-19 has had on the online channel. Online has been Under lockdown and the longer restrictions last, the more online benefits and high steadily growing share for years, but 2020 caused that long term growth rate to skyrocket. street suffers. With similar levels of extra expenditure in 2021, e-commerce share Boris Johnson’s televised instruction to “use food delivery services where you can” sent the overall could reach 12% over the full year, up on the 11% in 2020. Alcohol in January channel into overdrive, with most supermarket websites crashing or seeing enormous virtual queues. was again the fastest growing category, bucking any notion of a Dry January for the masses, growing 25.5% in volume and 29% in value. The supermarkets then had to adapt and dramatically increase delivery slots availability to Kantar, FMCG panel, Grocery, 4we 24th January 2021 cope with the demand. One of the biggest challenges facing the online channel pre-2020 was converting lifelong in-store shoppers to online, as this is a considerable behavioural change that tends to be brought about by necessity. The pandemic forced in-store shoppers outside of their comfort zone and straight into the online On Trade Adapts… channel, overcoming online’s key penetration challenge. With thousands of new accounts set up, favourites established, more time in-home to collect deliveries and an increase in capacity, the CGA reports in their recent ‘Future of e-commerce’ report that a quarter (28%) online channel is perfectly positioned to take even more share in 2021 and beyond. of On Premise consumers bought alcohol online in December 2020, up by three Two key advantages to an online cider shopper are: the convenient delivery of bigger packs and percentage points since August. Of these, three in ten (30%) had never done so more retailers to choose from. To properly complement these advantages suppliers should be pushing their biggest packs in online supermarkets and increasing their brand’s visibility across prior to the pandemic—proof that lockdowns have released a wave smaller sites, for example subscription services or direct to consumer.” of new online purchasers. CGA’s ‘The Future of E-commerce’ Feb 2021
66 Westons CideR RepoRt 2021 Westons CideR RepoRt 2021 67 GLOBALDATA SNAPSHOT #7 INTERNATIONAL SNAPSHOT The biggest opportunity for cider is in
In line with what we have seen in the UK numbers the combined volume of the top ten cider countries fell by 16% between 2019 and ARGENTINA ARG internationalisation. Whilst the UK and Ireland will 2020, due to the disruption caused by the coronavirus. 76M LITRES | -20.6% YoY continue to dominate, other markets such as South APPLE CIDER 100% Africa, Australia, and Eastern Europe present clear opportunities. We cannot ignore the continued rise of the health and wellness UK = 34% trend, evidenced by the extraordinary growth of hard seltzers in # of global cider volume # # 1 4 8 North America and now in Europe. Cider can play in this arena nicely. UK AUSTRALIA GERMANY UP FROM Philip Coverdale UK AUS #10 GDR 165M LITRES | -9.6% YoY 66M LITRES | -7.7% YoY LAST YEAR Director of Consulting, GlobalData Consumer APPLE CIDER 66% APPLE CIDER 80% APPLE CIDER 88% FLAVOURED CIDER 31% FLAVOURED CIDER 10% FLAVOURED CIDER 11% PEAR CIDER 3% PEAR CIDER 10% PEAR CIDER 1% GLOBAL OPPORTUNITIES # # # 2 5 9 Looking at the globaldata FORECAST forecast for cider, between COUNTRY GROWTH 2021 / SOUTH AFRICA SA SPAIN SP IRELAND IRL 2022 (M LITRES) 273M LITRES | -21.4% YoY 99M LITRES | -16.6% YoY 62M LITRES | -9.4% YoY 2021 and 2022 there are South Africa 39 APPLE CIDER 87% APPLE CIDER 96% APPLE CIDER 94% some key opportunities FLAVOURED CIDER 13% FLAVOURED CIDER 4% FLAVOURED CIDER 5% for growth. South Africa United Kingdom 31 PEAR CIDER 1% is forecast to grow by Australia 9 United States 39 million litres, the UK 9 of America by 31 million, and Australia # # # Canada 7 3 6 10 by 9 million litres. In total Ukraine 5 global volume is expected USA USA CANADA CAN FRANCE FRA Globaldata 2020 Spain 5 186M LITRES | -9.0% YoY 92M LITRES | -4.7% YoY 58M LITRES | -25.2% YoY to grow 5.3%. Other Africa (Global) 5 % % % APPLE CIDER 97 APPLE CIDER 77 APPLE CIDER 94 Republic of Ireland 2 FLAVOURED CIDER 3% FLAVOURED CIDER 21% FLAVOURED CIDER 5% PEAR CIDER 2% PEAR CIDER 1% New Zealand 2
68 Westons CideR RepoRt 2021 Westons CideR RepoRt 2021 69 THE YEAR AHEAD… So, why not Over the coming year, we hope the phrase ‘the new normal’ and the confusion and uncertainty that it brings, will be something that can be raise a glass to left behind. For the drinks industry, the coronavirus pandemic overshadowed positivity! 2020 by taking an unprecedented and unexpected toll on our personal and professional lives. As hopes for the successful vaccination roll out materialise, we hope that we can all go back to just ‘being’, and enjoying our lives more freely. Last year, in the Cider Report, we reviewed the biggest cider days of 2019. Bank holidays over the Spring and Summer are always key volume occasions as we get together at home and out in pubs, with August bank holiday regularly near the top spot as the largest day. For the Summer of 2021, the motivations for meeting up and going out will be even stronger, not just on bank holidays, but finding the time to go above and beyond to see those friends and family we haven’t seen for over a year. Beyond bank holidays, sport always drives big cider days and there is a feast of it from May onwards… end of the football and rugby season, the Euros, the FA Cup, the Olympics, Lions rugby, and a long Summer of cricket with domestic and rescheduled internationals. Even if some of these events do unfortunately happen behind closed doors, or even worse have to be cancelled, we’re still confident that these Summer days filled with sport will be seen as the perfect excuse to enjoy a cider, even more so if the sun shines. Our experts were generally very optimistic about the opportunities in the near future for both the on and off trade, with one suggesting the possibility of a ‘boom year once the pubs can trade’. Both channels will have undoubtedly changed forever and will not return to the previous dynamics, but will instead embrace new ways of serving customers. So why not let us all hold on to that positivity.
70 Westons CideR RepoRt 2021 Westons CideR RepoRt 2021 71 WE’D LOVE TO HEAR FROM YOU! We would really like to hear from readers and invite you to share your thoughts:
Written & compiled by: Tim Williams (Insight & Innovation Manager) Emily Jenkins (Off Trade Category Manager) Helen McIlveen (On Trade Category Manager)
Westons Cider would like to thank the following contributors to the 2021 Westons Cider Report Special thanks to contributors: Richard Yarnell Mitchells & Butlers, Nina Warren Molson Coors Brewing Company, Alex Heffernan IRI, Chris Sterling CGA, Fenella Tyler NACM, Simon Horner Kantar Worldpanel, David Bremner Robinsons Brewery, Neil Musson Wadworth Brewery, Tom Foddy Wells & Co, Philip Coverdale
And thanks to our Data Sources (unless stated): CGA On Premise Management Service to 26/12/2020. CGA On Premise Measurement Service to 26/12/2020 CGA 2021 Hospitality Consumer Forecast CGA Trends Analysis Changing Needs CGA Blog 8th Jan “Ten trends impacting on premise drinking or 2021” CGA UKH Safe Reopening of Hospitality Feb 12th 2021 IRI 52w/e 2nd January 2021. Kantar Alcovision 12m/e 31st December 2020. Kantar Worldpanel 52w/e 27th December 2020. Globaldata plc 2021. Mintel 2020. Designed and produced by HRG UK Ltd © H.Weston & Sons Ltd reserves all rights to copying, distribution & decompilation of this publication.
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