A Measured View (June 07)

A MEASURED VIEW

SECOND SUMMER OF CIDER?

LIQUID ASSETS, A MEASURED VIEW, JUNE 2007, COMMENTS

Will 2007 bring forth the second summer of cider (arguably the third but the alliteration is not as good!)? CGA Operations Manager, Mark Newton has put a report together that suggests the Magner’s effect will ensure cider as a category remains strong but that increasing competition amongst brands and from world lagers and RTDs means the times of unqualified success could well be over.
A stream of new products since 2004 and a revival of interest in the cider market generally have helped to create genuine and significant momentum, making cider the fastest growing drinks category in the on and off-trade and a lucrative market for both producers and operators. Consumers are genuinely interested and excited by the new products on offer with spin off benefits for pre-existing brands such as Strongbow and Blackthorn.

“Last year was a very significant year, exceptional, and because of what the producers are doing, and how the consumers are responding, we think it’s sustainable.”

National Cider Makers Association

As a category, packaged cider is now distributed in over 83,000 outlets – up from 60,000 venues just twelve months ago. Packaged cider has also made great strides in the fridge, taking space from premium packaged lagers, soft drinks and even wine. And there are plenty of indications that this progress will be maintained in the coming months:

• Customer acceptance of cider as an all year round drink

• Improved marketing techniques from the major suppliers

• Willingness of customers to switch from RTDs and PPLs

• Growth of premium brands increasing consumer choice

• Aggressive pricing policies from competitors brands

• Venues are increasingly happy to expand both draught and packaged cider offer

While trading prospects look bright for the cider category, it is clear that there will be significant competitive pressure from both cider brands looking to increase their market share and from other brands looking to regain lost ground. Heavy investment from S&NUK behind the Bulmer’s brand, growth in popularity of niche brands (as consumers brought back to cider now look for something different) and brands from other categories positioning themselves as a great choice ’over ice’ e.g. Elephant beer, Smirnoff Mule – all mean Magner’s will have to fight hard to protect the territory won in recent times.

For more information on CGA’s Cider Market Report, contact Mark Newton on 0161 477 5095 or mark@cgastrategy.co.uk

From: June 2007 Issue

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