Table of Contents
Overview
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- What you need to know
- Products covered in this Report
Executive Summary
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- The market
- Inflation is the primary driver of cider value sales growth in 2012-17
- Inflation and limited volume sales expected for 2017-22
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- Figure 1: Total UK value sales of cider, 2012-22
- Summer weather boosts sales in the off- and on-trade in 2017
- UK government adds to financial pressure on companies
- Health organisations warn of the dangers of alcohol
- Companies and brands
- Strongbow remains the retail market leader, but loses volume sales
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- Figure 2: Leading brands’ sales in the UK retail cider market, by value, 2016/17*
- Smaller formats and premiumisation trends continue in 2017
- More crossover brands enter the cider category
- Advertising spend on cider falls in 2016
- Heineken remains the leading advertiser in 2016/17
- Strongbow has the highest usage, but Kopparberg is most trusted brand
- The consumer
- Half of UK adults drink cider
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- Figure 3: Usage of cider, by flavour, October 2017
- Ageing population to impede market growth
- At home cider usage prevails over the on-trade
- Retailer tactics underpin low brand loyalty
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- Figure 4: Cider buying habits, October 2017
- Three quarters of drinkers/buyers want ciders to be grouped in-store by flavour profile
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- Figure 5: Behaviours relating to cider, October 2017
- Widely-held view of cider as good value should help to cushion the market against cutbacks
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- Figure 6: Attitudes towards cider, October 2017
- What we think
Issues and Insights
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- More detailed in-store grouping would be welcomed by many
- The facts
- The implications
- Smaller servings appeal in both the off- and on-trade
- The facts
- The implications
- Consumer sugar concerns present both a challenge and an opportunity
- The facts
- The implications
The Market – What You Need to Know
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- Inflation is the primary driver of cider value sales growth in 2012-17
- Inflation and limited volume sales expected for 2017-22
- Summer weather boosts sales in the off- and on-trade in 2017
- UK government adds to financial pressure on companies
- Health organisations warn of the dangers of alcohol
Market Size and Forecast
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- Cider volume sales enjoy modest growth in 2017
- Inflation expected for 2017-22, but less strong than in 2017
- Ageing UK population to diminish volume sales in 2017-22
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- Figure 7: Total UK value and volume sales of cider, 2012-22
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- Figure 8: Total UK value sales of cider, 2012-22
- Forecast methodology
Channels to Market
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- Higher prices in the on-trade allow it to lead on values but not volumes
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- Figure 9: Value and volume sales of cider in the off- and on-trade, 2012-17
- Summer weather boosts cider sales in both channels in 2017
Market Drivers
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- Various economic factors affect cider
- Widely-held views of cider as good value should cushion the market amid rising pressure on household incomes
- Rise in alcohol duties and inflation raise costs for cider companies
- UK Supreme Court approves alcohol minimum unit price plans in Scotland
- Consumers’ alcohol reduction leaves the category exposed
- Health organisations urge measures to curb alcohol consumption
- Consumers’ sugar concerns affect cider
- Ageing UK population to hinder cider volume sales growth
- Cider’s weather dependence adds an unpredictable element
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- Figure 10: Sunshine hours in the UK, by month, 2012-17
Companies and Brands – What You Need to Know
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- Strongbow remains the retail market leader, but loses volume sales
- Smaller formats and premiumisation trends continue in 2017
- More crossover brands enter the cider category
- Advertising spend on cider falls in 2016
- Heineken remains the leading advertiser in 2016/17
- Strongbow has the highest usage, but Kopparberg is most trusted brand
Market Share
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- Strongbow remains the leading retail cider brand, but loses volume sales as competition increases
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- Figure 11: Leading brands’ sales and shares in the UK retail cider market, 2014/15-2016/17
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- Figure 12: Leading brand owners’ sales and shares in the UK cider retail market, 2014/15-2016/17
- Kopparberg gains sales as it wins shelf space
- Increased advertising spend boosts Thatchers
- Molson Coors takes over Aspall
- Lambrini recovers sales in stagnant perry market
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- Figure 13: Leading brands’ sales and shares in the UK retail perry market, 2014/15-2016/17
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- Figure 14: Leading brand owners’ sales and shares in the UK retail perry market, 2014/15-2016/17
Launch Activity and Innovation
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- Premium launches emphasise their heritage
- More diversity in packaging formats
- Further expansion in smaller cans
- Brothers promotes its cider cartons as suited to outdoor events
- Further growth in flavoured ciders
- More crossover brands enter the cider category
- Jack Daniel’s unveils cider/Bourbon whiskey blend
- Craft brewer launches ciders and perry
- Shepherd Neame moves into cider
- Bulmers focuses on its farmers
Advertising and Marketing Activity
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- Heineken continues to lead advertising in 2016 amid fall in overall spend
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- Figure 15: Total above-the-line, online display and direct mail advertising expenditure on cider and perry, 2013-17 (sorted by 2016)
- Heineken concentrates on Strongbow in 2016/17
- Strongbow continues the ‘Let’s Own It’ campaign
- Bulmers promotes Orchard Pioneers with idyllic countryside imagery
- Old Mout continues its focus on adventure…
- …and urges people to help save the kiwi bird
- Thatchers emphasizes its perfectionism
- Farm footage used to project image of transparency
- Kopparberg continues the ‘Fånga Dagen’ campaign
- Music events continue enjoyment focus while also highlighting socially responsible credentials
- Social media campaign throws the spotlight on its hometown
- Nielsen Ad Intel coverage
Brand Research
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- Brand map
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- Figure 16: Attitudes towards and usage of selected brands, December 2017
- Key brand metrics
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- Figure 17: Key metrics for selected brands, December 2017
- Brand attitudes: Kopparberg is the most widely seen as worth paying more for
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- Figure 18: Attitudes, by brand, December 2017
- Brand personality: Strongbow and Magners score well on accessibility
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- Figure 19: Brand personality – Macro image, December 2017
- Kopparberg is the most widely seen as delicious
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- Figure 20: Brand personality – Micro image, December 2017
- Brand analysis
- Kopparberg is the most trusted and recommended brand
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- Figure 21: User profile of Kopparberg, December 2017
- Westons has associations with tradition and authenticity
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- Figure 22: User profile of Westons, December 2017
- Thatchers also scores well on tradition and authenticity
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- Figure 23: User profile of Thatchers, December 2017
- Magners is widely seen as accessible and fun
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- Figure 24: User profile of Magners, December 2017
- Strongbow is the most widely seen as good value
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- Figure 25: User profile of Strongbow, December 2017
- Lambrini performs well on the fun factor
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- Figure 26: User profile of Lambrini, December 2017
The Consumer – What You Need to Know
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- Half of UK adults drink cider
- Ageing population to impede market growth
- At home cider usage prevails over the on-trade
- Retailer tactics underpin low brand loyalty
- Three quarters of drinkers/buyers want ciders to be grouped in-store by flavour profile
- Widely-held view of cider as good value should help to cushion the market against cutbacks
Usage of Cider
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- Half of UK adults drink cider
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- Figure 27: Usage of cider, by flavour, October 2017
- Ageing UK population to hinder market growth
- Half of cider drinkers have moved on from the brands of their youth
- More men than women drink cider by beer brewers
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- Figure 28: Usage of different types of cider, October 2017
- Significant overlap in usage of craft and standard ciders
Usage Occasions for Cider
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- At home cider usage prevails over the on-trade
- Smaller servings of cider in the on-trade appeal to many
- ‘Cider lists’ on menus allow venues to showcase their cider selection
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- Figure 29: Usage occasions for cider, October 2017
- Dish-matching suggestions on labels would encourage drinking as meal accompaniment
- Opportunities for dish-pairing suggestions on menus
- Cider is more likely to be chosen for casual than formal occasions
- Brands look to build associations with special occasions with wine-style bottles
Cider Buying Factors
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- Cider’s relative cheapness and retailer tactics underpin low brand loyalty
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- Figure 30: Cider buying habits, October 2017
- Sampling can help to drive trial
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- Figure 31: Prompts to try a new brand of cider, October 2017
- Link-ups with supermarket loyalty schemes could help to harness the power of discounts
- Recommendations have an important influence
- Discounts and giveaways should help to incentivise recommendations…
- …as can ‘shared secrets’ marketing messages
- Promotions are more compelling than price in driving choice
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- Figure 32: Factors influencing choice of cider, October 2017
- Little sign of flavour fatigue among cider buyers
- Few people are influenced by British ingredients
- Giving details of the farm would give stronger differentiation
- Cider producers could take cues from wine and refer to terroir
- Low consumer awareness likely reason why named apple varieties have little influence
- Need to communicate to consumers how the apple varieties affect the final taste
Behaviours relating to Cider
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- Three quarters of drinkers/buyers want ciders to be grouped in-store by flavour profile
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- Figure 33: Behaviours relating to cider, October 2017
- Consumers’ sugar concerns present both a challenge and an opportunity
Attitudes towards Cider
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- Cider is widely seen as good value
- Premium products can benefit from a ‘quality over quantity’ mind-set
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- Figure 34: Attitudes towards cider, October 2017
- Smaller formats appeal widely as a way to control alcohol intake
Appendix – Data Sources, Abbreviations and Supporting Information
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- Abbreviations
- Consumer research methodology
Appendix – Market Size and Forecast
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- Figure 35: Total UK volume sales of cider, 2012-22
- Figure 36: Forecast of UK sales of cider, by value, best- and worst-case, 2017-22
- Figure 37: Forecast of UK sales of cider, by volume, best- and worst-case, 2017-22
- Forecast methodology
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