Table of Contents
Issues in the Market
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- Key issue/themes
- Definitions
- Excluded
- Abbreviations
Future Opportunities
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- Trend: Experience Is All
- Trend: Fauxthenticity
Market in Brief
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- Cider is a major success story
- Cider should continue to perform well despite tough conditions
- Its benefits are well understood among cider drinkers…
- …but it remains low down on consumers’ drinks repertoire
- Better marketing of its benefits can help maximise its potential
Internal Market Environment
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- Key points
- A market fuelled by innovation…
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- Figure 1: Trends for UK volume sales of UK-produced cider, by format, 2000-08
- …and lower rates of duty...
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- Figure 2: Trends for excise duty on cider compared to the other key UK alcohol categories, March 2007-March 2010
- …but VAT and ‘tax escalator’ will see cider prices increase greatly
- Premiumisation essential for the continued development of the sector
- Local provenance has grown in influence
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- Figure 3: Trends for agreement with the statement ‘I buy goods produced in my own country whenever I can’, 2006-10
- Cider is steadily shedding its summer-only image
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- Figure 4: Trends for rolling annual total of proportion of UK cider drinkers, Q4 2006-Q1 2010
Broader Market Environment
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- Key points
- Limited discretionary consumer spend means tough market conditions
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- Figure 5: Trends for consumer expenditure, at current and constant (2010) prices, 2008-15
- Price will continue to push consumers to drink in home
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- Figure 6: Trends for indexed annual price changes in wine/cider/spirits in the on- and off-trade, 1988-2009
- Double-digit growth in 25-34-year-olds
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- Figure 7: Total adult population trends, by age, 2005-15
- Growth in AB population means premiumisation remains key
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- Figure 8: Forecast adult population trends, by socio-economic group, 2005-15
Competitive Context
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- Key points
- Cider is the only drink to grow its penetration of UK adults
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- Figure 9: Trends for drink types consumed in the UK over the past 12 months, 2006-10
- The alcohol market is becoming increasingly fragmented
- Cider benefits from a taste shift to lighter, fresher drinks
Strengths and Weaknesses
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- Strengths
- Weaknesses
Who’s Innovating?
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- Key points
- Developing draught cider
- An influx of bottled ciders with premium cues
- Aspall looks to compete with sparkling wines…
- …while Halewood targets rosé
- Own-label starts to get in on the act
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- Figure 10: Trends for proportion of new cider products to market, private brands versus own-label, 2007-10
Market Size, Forecast and Segmentation
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- Key points
- Cider market remains in rude health despite serious challenges ahead
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- Figure 11: Market size and forecast for the UK total cider/perry category, in volume and value sales, at retail selling prices, 2005-15
- The market will weather the tough conditions over the next two years
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- Figure 12: Forecast of the value sales for the total UK cider/perry market, 2005-15
- Value of off-trade market will outstrip on-trade by 2015
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- Figure 13: Trends for cider/perry on-trade value sales compared to off-trade, 2005-15
- Off-trade volume sales of cider to grow by 42% over the next five years
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- Figure 14: Market size and forecast for the UK off-trade cider/perry category, in volume and value sales, at retail selling prices, 2005-15
- Figure 15: Forecast of the value sales for the UK off-trade cider/perry market, 2005-15
- On-trade cider forecast is impressive considering that pubs will struggle
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- Figure 16: Market size and forecast for the UK on-trade cider/perry category, in volume and value sales, at retail selling prices, 2005-15
- Figure 17: Forecast of the value sales for the UK on-trade cider/perry market, 2005-15
- Methodology
Market Share
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- Key points
- Strongbow consolidates its number one position
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- Figure 18: Trends for value and share of cider brands in the UK off-trade market, 2008 and 2009
- Own-label sales are increasing ahead of the market
- Despite rise of premium cider, cheaper brands are thriving
- Higher-ABV cider brands fall into two distinct camps
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- Figure 19: Brand map of price compared to ABV within the cider/perry market, November 2010
Companies and Products
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- Key points
- Major players
- C&C Group
- Product range
- Recent activity
- Heineken
- Product range
- Recent activity
- Other cider companies
- Aston Manor Brewery
- Product range
- Recent activity
- Halewood International
- Product range
- Recent activity
- Merrydown
- Product range
- Recent activity
- Thatchers
- Product range
- Recent activity
- Westons
- Product range
- Recent activity
Channels to Market
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- Key points
- Pubs responsible for lion’s share of cider value
- However, not all have adopted to the changes in such a dynamic market
- Major multiples have a relatively small slice of the pie
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- Figure 20: Share of value cider sales in the total UK market, by on-trade and off-trade channel, 2009
Brand Communication and Promotion
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- Key points
- Cautious advertising spend despite continued sales
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- Figure 21: Trends for total above-the-line advertising spend for the cider/perry category, 2006-10*
- Magners has dominated spend over the past three years
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- Figure 22: Proportion of total above-the-line advertising spend for the cider/perry category, by brand, January 2007-June 2010
- Spend dominated by C&C and Heineken
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- Figure 23: Proportion of total above-the-line advertising spend for the cider and perry category, by companies, January 2007-June 2010
Consumer Usage of Cider
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- Key points
- Cider goes from niche product to major category…
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- Figure 24: Trends for cider consumed in the past 12 months, 2006-10
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- Figure 25: Proportion of UK cider drinkers and how this ranks against other drink types, August 2010
- …but can it sustain its appeal as its core young drinkers get older?
- Cider’s status as a repertoire drink remains a weakness
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- Figure 26: Proportion of drinkers who consume cider depending on how many drink types they consume, August 2010
- Cider is attracting more wine than beer drinkers
- Targeting the missing quarter of drinkers
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- Figure 27: Crossover of cider, wine and beer drinkers, August 2010
- Men and women have different barriers to drinking cider
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- Figure 28: Those who drink wine and beer but not cider, and their reasons for not drinking cider, August 2010
- Pear/fruit cider is catching on
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- Figure 29: Proportion of UK apple and pear/other fruit cider drinkers and how this ranks against other drink types, August 2010
- Around half of cider drinkers embrace both kinds
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- Figure 30: Cider drinkers, by cider type, August 2010
- Pear and fruit ciders are helping to attract a younger, more female crowd
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- Figure 31: Solus drinkers of apple and pear/fruit cider, indexed (100 = average), by gender, age and socio-economic group, August 2010
Consumer Attitudes towards Cider
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- Key points
- Cider drinkers are very enthusiastic about its sweet and refreshing taste
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- Figure 32: Statements about cider which cider drinkers agree with, August 2010
- Cider has the benefits to attract chilled wine drinkers
- Too many cider drinkers view it as an alternative to their usual tipple
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- Figure 33: Drink types consumed in the past year by those cider drinkers who consume cider when they feel like a change from their usual drink, August 2010
- Appealing to discerning drinkers attracted by local provenance
- Consumers are now less likely to pigeon-hole cider as just for summer
- Cider is simply not on the radar for most non-drinkers…
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- Figure 34: Reasons why people have not drunk cider in the past year, August 2010
- …and can sell its benefits better to the wider drinking public
- Cider needs to raise its food matching profile
- The category cannot forever rely on innovation for its growth
- Women put off by the volume of cider serve
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- Figure 35: Reasons why people have not drunk cider in the past year, indexed (100 = average), by gender, August 2010
- When men want a pint, they are more likely to opt for lager
Targeting Cider Potentials
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- Key points
- Cider has potential to convert many more drinkers...
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- Figure 36: The proportion of Cider Potentials and Cider Rejecters among non-cider drinkers, August 2010
- ...but taste is the main turn-off for rejecters
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- Figure 37: Barriers to entry for Cider Rejecters compared to Cider Potentials, August, 2010
- A chance to attract more older, discerning males
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- Figure 38: Cider Potentials, by socio-economic group, age and gender, August 2010
- Cider has the potential to attract more drinkers from wine than from lager
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- Figure 39: Drink types which Cider Potentials and Cider Rejecters consume, August 2010
Appendix – Internal Market Environment
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- Figure 40: Agreement with the statement ‘I buy goods produced in my own country whenever I can’, by demographics, 2010
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- Figure 41: Monthly % change in GfK NOP Consumer Confidence Index, January 2009-October 2010
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Appendix – Brand Communication
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- Figure 42: Advertising spend (top ten) on cider and perry, by company, 2007-10
- Figure 43: Advertising spend (top ten) on cider and perry, by brand, 2007-10
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Appendix – Consumer Usage of Cider
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- Figure 44: Most popular types of alcohol drunk in the past 12 months, by demographics, August 2010
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- Figure 45: Next most popular types of alcohol drunk in the past 12 months, by demographics, August 2010
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- Figure 46: Other types of alcohol drunk in the past 12 months, by demographics, August 2010
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- Figure 47: Least popular types of alcohol drunk in the past 12 months, by demographics, August 2010
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- Figure 48: Types of alcohol drunk in the past 12 months, August 2010
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- Figure 49: Types of alcohol drunk in the past 12 months, by demographics, August 2010
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Appendix – Consumer Attitudes towards Cider
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- Figure 50: Agreement with the statement ‘Cider is too sweet to drink too much of it in one sitting’, by demographics, August 2010
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- Figure 51: Agreement with the statement ‘Cider is refreshing’, by demographics, August 2010
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- Figure 52: Agreement with the statement ‘I like the sweet taste of cider’, by demographics, August 2010
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- Figure 53: Agreement with the statement ‘I like the variety of different flavoured ciders now available’, by demographics, August 2010
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- Figure 54: Agreement with the statement ‘I prefer traditional cider (ie apple) rather than the variety of different flavoured ciders now available’, by demographics, August 2010
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- Figure 55: Agreement with the statement ‘Cider is made from fresh/natural ingredients’, by demographics, August 2010
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- Figure 56: Agreement with the statement ‘I drink cider when I feel like a change from my usual drink(s)’, by demographics, August 2010
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- Figure 57: Agreement with the statement ‘I only drink cider in warm weather’, by demographics, August 2010
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- Figure 58: Agreement with the statement ‘I like to drink cider all year round’, by demographics, August 2010
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- Figure 59: Agreement with the statement ‘I like drinking local ciders’, by demographics, August 2010
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- Figure 60: Agreement with the statement ‘I prefer to pay more for premium cider’, by demographics, August 2010
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- Figure 61: Agreement with the statement ‘It never occurs to me to drink cider’, by demographics, August 2010
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- Figure 62: Agreement with the statement ‘Cider is too sweet’, by demographics, August 2010
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- Figure 63: Agreement with the statement ‘Cider has too many calories’, by demographics, August 2010
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- Figure 64: Agreement with the statement ‘I am put off by the taste’, by demographics, August 2010
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- Figure 65: Agreement with the statement ‘If I am going to drink a pint, I would rather it be beer’, by demographics, August 2010
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- Figure 66: Agreement with the statement ‘There are more refreshing alternatives (eg lager, wine etc)’, by demographics, August 2010
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- Figure 67: Agreement with the statement ‘There are better-quality alcohol alternatives (eg lager, wine etc)’, by demographics, August 2010
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- Figure 68: Agreement with the statement ‘It has too many artificial ingredients’, by demographics, August 2010
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- Figure 69: Agreement with the statement ‘I prefer not to drink pints or bottles’, by demographics, August 2010
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- Figure 70: Agreement with the statement ‘I associate cider with something people only drink when they are young’, by demographics, August 2010
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- Figure 71: Types of alcohol drunk in the past 12 months, by agreement with the reason ‘There are more refreshing alternatives’, August 2010
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- Figure 72: Types of alcohol drunk in the past 12 months, by agreement with the reason ‘There are better-quality alcohol alternatives’, August 2010
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- Figure 73: Agreement with the statement ‘I am prepared to pay more for foods that don’t contain artificial additives’, by demographics, 2010
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Appendix – Targeting Cider Potentials
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- Figure 74: Reasons why people have not drunk cider in the past year, by demographics, August 2010
- Figure 75: Reasons why people have not drunk cider in the past year, by attitudes towards future cider consumption, August 2010
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