27June2007CiderCategorySetForFurtherGrowth

Cider

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cider category set for further growth, cga report reveals

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27 June 2007: The revival of the cider category has all the hallmarks of a sustained period of growth, a report from research consultancy CGA Strategy has revealed.

Customers increasingly perceive cider as an all year round rather than a seasonal drink, the report finds, suggesting that the dominance of the over ice proposition is subsiding as the popularity of other serve formats develop.

This is particularly evident in the South West, North West and the Midlands, where between 70% and 100% of consumers considered cider a drink for the whole year – not just the warm summer months. In areas of the country where the over ice proposition remains most common – including Magners heartlands London and the South East – the perception was reversed.

Published in June, CGA’s report draws on a combination of on trade and consumer research data to provide national and regional trend analysis of one of the on trade’s most talked about drinks categories.

Titled ‘The Magners Effect,’ it highlights the continued success of category leader Magners which, thanks to phenomenal year on year growth, now rivals mainstream lager brands Fosters and Carling in on trade distribution levels – stocked in excess of 50,000 outlets.

And whilst Magners performance remains solid, the report also reveals category growth fuelled by other brands. CGA’s research determined that both retailers and consumers are demonstrating a willingness to experiment with a widening range of products as the category’s renaissance continues – resulting in distribution increases for non-mainstream ciders such as Kopparberg and St Heliers.

Herein lies an opportunities for licensees, explains the report’s author Mark Newton - particularly in the YPV (young person’s venue) market, where perry (pear) and other fruit-based ciders make an attractive alternative to RTDs.

“Licensees who have experienced a surge in demand for cider driven by Magners are increasingly adding to their offer by bringing in premium and female friendly alternatives such as Weston’s Kiss or Aspall Perronelles Blush,” says Mark. “We expect to see this trend continue to develop over the next 12 months, with the likelihood of reactionary innovation from the major players including new draught products and alternative European brands.”

Also on the move is Bulmers, CGA report. In five of the seven geographic regions identified, up to 10% of licensees were found to have replaced Magners with Bulmers – reflecting the aggressive marketing and pricing policy adopted by S&N in support of its brand.

‘The Magners Effect’ was the first in a series of quarterly market reports from CGA. For more information, contact Mark Newton on 0161 477 5095 or visit www.cgastrategy.co.uk.

Related Link:

www.cgastrategy.co.uk

From: NIGHT Online

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