BUYERS’ GUIDE TO 2019 001 Cover DRN CIDER 2019 FINAL.indd 1 06/06/2019 16:24 BUYERS’ GUIDE TO CIDER 2019 www.drinksretailingnews.co.uk DrinksRetailing NEWS 3 COMMENT A THOROUGHLY VIBRANT CIDER CATEGORY ider is an uplifting and popular drinks category and off -trade value sales growth of 5.2% over the past year Cbacks this up. The glorious weather and key sporting fi xtures last summer helped to drive this excellent performance, but many producers report strong sales throughout the year, indicating that cider is no longer dependent on sunshine. The cider industry deserves praise for its levels of successful innovation. It is not limited to one producer, but rather it is a collective approach bases on a determination to drive and maintain interest in the category. Cider is also leading the way on environmental issues, which is increasingly important for consumers. We have dedicated a number of pages to the results of the International Cider Challenge 2019. This annual competition highlights the excitement and continued dynamism within the cider sector. The pages list the gold, silver and bronze winners in each category and a quick glance at these will highlight just how diverse the world of cider now is. The list of winners includes both big and small players, with entrants from all corners of the globe. The range of sub-categories in the competition – particularly within fruit and fl avoured ciders – refl ects the level of creativity from cidermakers around the world. Contents The rapid growth of the overall fruit fl avoured cider market THE STATISTICS ICC RESULTS is now well-documented, but the number of medals given to How cidr frd this r - th Th 2019 Intrntionl Cidr entrants in these emerging areas of cider shows there could also 04 top sllrs nd th numbrs t 13 Chlln rsults - th full be a place in the market for some of the more unusual fl avours lnc stor in future. Retailers that want to create a point of diff erent in their cider off er could benefi t from seeking out ciders that score NPD FRUIT CIDER highly on taste tests, while a glance at the fruit cider feature on Producrs r continuin to Drk fruits nd brris ld page 24 will outline which brands are selling well and which 06 innovt to driv intrst in 24 th w but r othr fl vours fl avours might be the next ones to take off . th cidr isls mrin? And fi nally, it’s worth remembering that innovation in cider isn’t restricted to new fl avour combinations. Apple cider GREEN CREDENTIALS KOPPARBERG accounts the majority of sales and it is still in growth. Producers Rducin th us of plstic Th producr hihlihts its in this segment are experimenting with diff erent apple varieties, 08 is just on of th sustinbl 26 ks, cns, nw fl vours nd single variety ciders, rosé cider and diff erent packaging formats. pprochs in cidr lon-trm bstsllrs There’s a lot going on in this vibrant category, but all the hard work from producers appears to be paying off . Cider fans are WESTONS MERCHANDISING showing loyalty to their favourite brands and yet they are also Wstons is usin dt to How to t th bst out of happy to try new things. These drinkers are engaging well with 10 push th cidr ctor in 28 our cidr fi xtur throuh th social media campaigns and they have welcomed cider’s links to intrstin nw dirctions summr months sports, music events and other summer-specifi c activity. The sun will hopefully shine this summer, but if the CIDER IS WINE LEGISLATION weather is less favourable this year cider still looks capable of Cidr hs trditionll st with Wht ff ct hs th maintaining its strong performance. 12 br but som think it could b 30 ovrnmnt’s nw dut rt Son Hook, ditor lind with win hd on th cidr mrkt? ABC CIRCULATION: 8,999 copis Managing editor Commercial director monthl (Jul 2017 – Jun 2018) Not ll mins hv n ABC (Audit MARTIN GREEN SAMANTHA HALLIDAY Buru of Circultions) udit. It is SUBSCRIPTION controlld b th mdi industr nd is HOTLINE: thr to prov th copis w snd out Longley House, International Drive, 01371 853630 r rd b who w s th r. It cts Supplement editor Account manager s our stmp of trust in our rdrship Southgate Avenue, Crawley, West Sussex SONYA HOOK ERICA STUART fi urs RH10 6AQ Drinks Rtilin Nws is publishd b Ail Mdi. Printd b Stphns nd Gor. Rpro b Ail Mdi. www.drinksrtilinnws.co.uk Art director Publisher Ristrd s nwsppr t th Post Offi c, ISSN 0043-5775 ©Ail Mdi @drinksrtilin CHRISTINE FREEMAN LEE SHARKEY SUBSCRIPTION Ltd 2017. DRN nd Drinks Rtilin Nws r trdmrks of Ail Mdi. KLENOVA ISTOCK.COM/ ENQUIRES: £7.50 cop inc post. Annul [email protected] subscriptions: £77 UK, £132 Europ, Sub editor Managing director £203.50 worldwid irmil JAQ BAYLES RUSSELL DODD COVER IMAGE: ISTOCK.COM/MIODRAG IGNJATOVIC 003 Contents DRN CIDER 2019.indd 3 06/06/2019 16:16 4 BUYERS’ GUIDE TO CIDER 2019 www.drinksretailingnews.co.uk CIDER VALUE BY RETAILER ■ TESCO 23.7% ■ ASDA 15.4% ■ SAINSBURY’S 12.4% ■ MORRISONS 12% ■ CO-OP 8.4% ■ WAITROSE 2.6% ■ ALDI 5.5% ■ LIDL 4.2% ■ OTHER 15.8% 529 MILLION LITRES OF CIDER & PERRY SOLD IN THE OFF-TRADE, +2.8% YOY CIDER VALUE BY PACK FORMAT ■ CAN 53% +11.5% ■ GLASS BOTTLE 32% -0.5% ■ PLASTIC BOTTLE 13% -7.9% ■ OTHER 1% -1.8% ■ KEG 1% +335.2% ANALYSIS: CATEGORY OVERVIEW ales are booming within the off-trade cider category and leading producers are confident they can CIDER SALES maintain the momentumS in the year ahead. Value sales increased 5.3% to £1.2 billion in the past year and volumes SOAR ACROSS were up 2.8% (IRI) on the back of some favourable weather and a raft of innovation. A number of segments are in growth: BRITAIN craft cider, maintstream cider, fruit and premium, while only a few areas are The cider category is in rude health right now and seeing a decline in sales: value amber and white cider. several segments are enjoying strong sales growth Matthew Langley, insight and innovation manager at Westons Cider, says: “Cider has once again made a huge contribution in the off-trade across all retail formats and we see no sign of this changing. Some 47.8% of all households now regularly buy cider – up from 45.5% last year – while the number of cider shoppers has also risen, by 3.8%. “Even more encouragingly, value has continued to outpace volume which clearly signals how drinkers are 004-005 Data DRN CIDER 2019.indd 4 06/06/2019 16:03 DrinksRetailingNEWS 5 CATEGORY SHARE BY VALUE TOP 10 OFF-TRADE APPLE PEAR CIDER SKUS 57% (+2.5%) 7% (-1.5%) 1. STRONGBOW 2. STRONGBOW DARK FRUIT 3. KOPPARBERG STRAWBERRY & LIME FRUIT 36% +(11.7%) 4. KOPPARBERG MIXED FRUIT 5. MAGNERS 6. THATCHERS GOLD 7. HENRY WESTONS 8. LAMBRINI 9. FROSTY JACK’S £1.2 £2.25 10. SCRUMPY JACK BILLION OFF- AVERAGE PRICE OF TRADE VALUE CIDER PER LITRE IN UK SALES OFF-TRADE, +2.4% YOY Source: IRI and Kantar, year to February 2019, Westons Cider report continuing to trade up to more premium is still apple cider, which holds the major the growth is clearly elsewhere in the ciders, while new exclusive research share of the cider market in the off -trade, category.” commissioned by Westons for this year’s but fruit cider is seeing faster growth. Another growth area is no and low- report reveals that the breadth of cider alcohol cider, which is now worth £13.1 drinks also continues to widen. All these THE RISE OF FRUIT CIDER million, with sales up 25.8% and volume factors are clearly good news for the Langley at Westons says: “Apple is still up 27%. category’s long-term prospects.” dominant, accounting for more than half Langley says: “More brands are launching Cider producers are also working of all cider sales and up 2.5% by value products into this sector, and retailers are hard to innovate and investments in new year-on-year. But fruit has had another giving it more space in store, which in turn packaging formats form part of this. fantastic year with sales up by 11.7% in has helped to drive penetration. However, Chris Milton, off -trade sales director, value to help it secure £1 of every £3 spent we should remember that low-alcohol is still Thatchers Cider, notes that cider in cans in the off -trade. a relatively small part of the cider market continue to drive market performance. “Even more impressively, fruit cider overall. He says: “Cans have the majority of is now bought by more households than Kopparberg says it has been well- market share with 52.5% share of total apple cider and is clearly attracting a positioned for the alcohol-free movement cider and perry volume (IRI w/e March new generation of shoppers who are also for many years, having had an alcohol- 2, 2019), so a range of cans on your shelf keen to buy fruit ciders in cans, with this free variant in its portfolio for some time. – in readiness for this year’s festivals, format accounting for more than half of It claims to have 16% share of the alcohol- sports fi xtures, events and great weather all fruit cider sales. free beer and cider market, behind Becks – should include best-sellers Thatchers “In the cider report we released last Blue and Heineken 0.0.