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Cider - UK - January 2016

OVERVIEW
What you need to know
Covered in the report
EXECUTIVE SUMMARY
The market
Cider value sales dip into decline
The on-trade outperforms the off-trade
Figure 1: Forecast of UK value sales of cider, 2010-20
Companies, brands and innovation
Heineken leads in the retail cider market
Strongbow holds onto its lead despite the rise of fruit ciders
Mixed fortunes for fruit ciders
Figure 2: Retail value sales of the leading cider brands in the UK, 2014/15*
Cider adspend on the rise
Cloudy cider back on the NPD radar
The consumer
Cider penetration stands at 56%
Figure 3: Usage of types of cider, October 2015
Half of cider drinkers list apple as their favourite flavour/type
Cider becomes less seasonal
Supermarkets remain the most popular place to buy cider
Standard formats gain highest preference
Only 30% of cider drinkers are prepared to spend more than £4 per pint
Figure 4: Amount willing to spend on a pint of cider, October 2015
Strong interest in cloudy ciders and cider from different countries
Figure 5: Attitudes towards cider, October 2015
What we think
ISSUES AND INSIGHTS
Cider can move into wine’s territory
The facts
The implications
Can cloudy cider point the way back to growth for apple cider?
The facts
The implications
Cross-category promotions can boost cider (and beer) sales
The facts
The implications
Cider can compete with beer more effectively
The facts
The implications
THE MARKET – WHAT YOU NEED TO KNOW
Cider struggles to regain momentum
The on-trade outperforms the off-trade
Alcoholic drink prices continue to rise
UK consumers continue to cut back on alcohol
Cider becoming more of an all-year-round drink
MARKET SIZE AND SEGMENTATION
Cider struggles to regain momentum
Figure 6: Total value sales of cider, at current and constant prices, 2010-20
Figure 7: Forecast of UK value sales of cider, 2010-20
The on-trade outperforms the off-trade
Fruit ciders continue to thrive
Figure 8: Value and volume sales of cider, by channel, 2010-15
MARKET DRIVERS
Alcoholic drink prices continue to rise
Figure 9: UK excise duty rates for selected alcoholic drinks, 2005-15
Cider enjoys a lower excise duty than beer
Fruit-flavoured ciders are taxed as made wines
UK consumers continue to cut back on alcohol
Government focus on healthy lifestyles
An embattled on-trade industry
Cider becoming more of an all-year-round drink
Figure 10: Hours of sunshine in the UK, by month, 2010-15
Cider appeals to both genders
Figure 11: Quantity of cider and made wine released for consumption in the UK, 2004/05-2014/15
Population changes could also impact the market
KEY PLAYERS – WHAT YOU NEED TO KNOW
Heineken leads in the retail cider market
Strongbow holds onto its lead
Mixed fortunes for fruit ciders
Cider adspend on the rise
Cloudy cider back on the NPD radar
MARKET SHARE
Heineken leads the retail cider market
Figure 12: Leading manufacturers’ shares of cider sales in the UK off-trade, 2014/15*
Strongbow holds onto its lead despite the rise of fruit ciders
Figure 13: Retail value sales of the leading cider brands in the UK, 2012/13-2014/15
Traditional apple cider brands still strong
Magners and Frosty Jack’s continue to see sales slide
BRAND COMMUNICATION AND PROMOTION
Cider adspend on the rise
Heineken continues to be the big spender on cider advertising
Figure 14: Recorded above-the-line, online display and direct mail total advertising expenditure on cider, by company, 2011-15
Figure 15: Recorded above-the-line, online display and direct mail total advertising expenditure on cider, by brand, 2011-15
Other selected brand campaigns
Beer brands pitch for premium image
Traditional cider brands focus on quality
Kopparberg continues pop-up festival
Outdoor becoming more popular for cider advertisers at TV’s expense
LAUNCH ACTIVITY AND INNOVATION
A return to cloudy cider
Flavour innovation remains popular
More brands look to forge a premium image
New entrants innovate with provenance
BRAND RESEARCH
What you need to know
Brand map
Figure 16: Attitudes towards and usage of selected cider brands, November 2015
Key brand metrics
Figure 17: Key metrics for selected cider brands, November 2015
Brand attitudes: Strongbow seen as a good value option
Figure 18: Attitudes, by cider brand, November 2015
Brand personality – Kopparberg and Magners share an upbeat brand image
Figure 19: Brand personality – Macro image, November 2015
Westons associated with tradition and authenticity
Figure 20: Brand personality – Micro image, November 2015
Brand analysis
Kopparberg strongly appeals to 18-24s
Figure 21: User profile of Kopparberg, November 2015
Magners has an all-round image
Figure 22: User profile of Magners, November 2015
Westons is associated with tradition, but struggles to connect with young groups
Figure 23: User profile of Westons, November 2015
Stella Cidre is thought of as stylish and sophisticated
Figure 24: User profile of Stella Cidre, November 2015
Carling Cider reaches equal awareness to Kopparberg
Figure 25: User profile of Carling Cider, November 2015
Strongbow noted for value but has lower recommendation
Figure 26: User profile of Strongbow, November 2015
THE CONSUMER – WHAT YOU NEED TO KNOW
Cider penetration stands at 56%
Half of cider drinkers list apple as their favourite flavour/type
Cider becomes less seasonal
Supermarkets remain the most popular place to buy cider
Standard formats gain highest preference
Only 30% of cider drinkers are prepared to spend more than £4 per pint
Strong interest in cloudy ciders and cider from different countries
Cider can tap into the craft trend
USAGE OF CIDER
Cider penetration stands at 56%
Figure 27: Usage of beer and cider, by age, October 2015
Apple is still core to the market
Figure 28: Usage of types of cider, October 2015
Ciders made by large and small producers
Usage of other types of cider remains niche
A third of adults drink one or two types of cider
Figure 29: Repertoire of usage of types of cider, October 2015
FAVOURITE TYPES OF CIDER
Half of cider drinkers list apple as their favourite flavour/type…
Figure 30: Favourite flavours/types of cider, October 2015
…while 24% identify fruit ciders as their favourite
CIDER AND SEASONALITY
Over-ice serve has linked cider to summer
Figure 31: Frequency of drinking cider, by season, October 2015
Selected quotes about cider and seasonality
LOCATIONS FOR BUYING CIDER
Supermarkets remain the most popular place to buy cider
Figure 32: Locations for buying cider, October 2015
Online opportunities?
On-trade purchasing venues
PREFERRED PACKAGING FORMATS
Standard formats gain highest preference
Figure 33: Preferred packaging formats for cider, October 2015
Opportunities for smaller formats
Larger formats only gain limited preference
ON-TRADE SPENDING ON CIDER
Only 18% of cider drinkers would spend less than £3 per pint
Nearly half of drinkers would spend £3 or more
Figure 34: Amount cider drinkers are willing to spend on a pint of cider, October 2015
Half of drinkers expect a half pint for less than £2
£2-2.49 can be a lucrative bracket for half pints
Figure 35: Amount cider drinkers are willing to spend on a half pint of cider, October 2015
ATTITUDES TOWARDS CIDER
Strong interest in cider from different countries
Figure 36: Attitudes towards cider, October 2015
Cloudy cider has wide appeal
Can cider leverage a craft positioning?
Interest in details of how cider is made
Concerns about ingredients
Scope to cut out the middleman
Promoting cider and food matching
Building a sophisticated image
APPENDIX – DATA SOURCES AND ABBREVIATIONS
Data sources
Abbreviations
Fan chart forecast
Brand research
Brand map
APPENDIX – MARKET SIZE AND SEGMENTATION
Figure 37: Best- and worst-case forecasts for the total cider market, by value, 2015-20
APPENDIX – MARKET SHARE
Figure 38: Manufacturers’ shares of cider sales in the UK off-trade, 2014/15*
Figure 39: Retail volume sales of the leading cider brands in the UK, 2012/13-2014/15

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