CIDER
REPORT
2016
16526 WESTONS CIDER REPORT_2016_A4_V10.indd 1
02/06/2016 18:01
CONTENTS
03 | CIDER INDUSTRY
HEADLINES
04 | THE CIDER CONSUMER
05 | CONSUMER NEED
STATES
06 | CHALLENGES AND
OPPORTUNITIES
07 | CATEGORY DRIVERS
09 | ON TRADE
MARKETPLACE
10 | THE TOP 5
12 | MARKET SNAPSHOT
ON TRADE
14 | RECOMMENDATIONS
ON TRADE
17 | OFF TRADE
MARKETPLACE
18 | CIDER FORMATS
OFF TRADE
19 | THE TOP 10
20 | THE TOP 5 BY SEGMENT
22 | CIDER RETAILERS
24 | MARKET SNAPSHOT
OFF TRADE
26 | RECOMMENDATIONS
OFF TRADE
H. Weston & Sons Ltd would like to
thank the following contributors to the
Westons Cider Report 2016:
Written and Compiled by:
Jackie Whibley,
Matthew Langley,
Insight Manager,
Category Development Manager,
Westons Cider
Westons Cider
Designed by: HRG UK LTD
Data sources:
IRI Data 52 weeks to 27th February 2016
Kantar Data 52 weeks to 28th February 2016
CGA Data 52 weeks to 23rd January 2016
Millward Brown September 2015
NACM March 2016
IGD March 2016
INTRODUCTION
WELCOME TO THE FIRST EDITION
OF THE WESTONS CIDER REPORT
A note from HELEN THOMAS, Managing Director of Westons Cider
My family has been making and selling cider in the UK for over 135
years, and in that time the cider industry has gone through many
transformational changes and challenges, with many ups and downs.
It has been and remains one of the most vibrant and fluid FMCG
sectors in the UK, with innovative companies offering new products
and new brands to meet the needs of todays consumers. At its
heart is a simple, traditional apple based drink, intrinsically tied to
the heritage and economy of Herefordshire, the place I call home.
Since I became Managing Director in 1996, Westons Cider has steadily and sustainably
increased the volume of cider we produce and sell each year, as well as consistently
increasing our share of the UK cider industry. We have now grown to the point where
one in every 20 pints of cider sold in the UK is a pint of Westons Cider. Throughout
this astonishing period of growth, Westons Cider has completely transformed, both
operationally and commercially, yet at our heart we remain a family owned and family
run business dedicated to working with our orchards, farmers, suppliers and customers
to safeguard traditional cider making techniques and protect a long-term sustainable
future for the cider industry.
The last year has been a challenging year for the cider industry with overall cider volumes
declining, yet I believe there are still huge opportunities for growth and development within
the cider category for companies, brands and retailers who are prepared to innovate
and invest in a long-term future for cider.
02/06/2016 18:01
DEPEND ON THE UK
CIDER INDUSTRY
THE UK CONSUMES
56%
OF
ALL
APPLES GROWN
IN THE UK ARE USED
TO MAKE CIDER
788 MILLION
7.1% OF THE
LITRES OF CIDER A
ACCOUNTS FOR
TOTAL ALCOHOL
MARKET IN THE UK
OFF TRADE
-2.8% YOY
THE
UK
REPRESENTS
48%
OF
THE GLOBAL
CIDER MARKET
CIDER
VALUE
SHARE
ON TRADE
+2.7% YOY
AVERAGE PRICE OF
AVERAGE PRICE OF
ON TRADE 3.58
A YEAR IN THE UK
YET DECLINING
63
%
36
64
CIDER
VOLUME
SHARE
2.8 BILLION
CIDER IS GROWING
0.8% YOY IN VALUE
OFF TRADE
-2.3% YOY
37%
ON TRADE
+0.9% YOY
CIDER IS WORTH
INDICATING
A STALLING
GROWTH PATTERN
02/06/2016 18:01
HIGHER
LOWER
ENGAGED
PIONEERS
TREND
FOLLOWERS
BUSY
SOCIALISERS
ENGAGED
PIONEERS
TREND
FOLLOWERS
ACTIVE
BALANCERS
CONFIDENT
ROUTINERS
BUSY
SOCIALISERS
SAVVY
REGULARS
CONTROLLED
DRINKING STYLE
CONFIDENT
ROUTINERS
ACTIVE
BALANCERS
SAVVY
REGULARS
EXPERIMENTAL
02/06/2016 18:01
MOOD
MAGIC
MOMENTS
SELF
RELAX &
RECHARGE
UNWIND
LOW TEMPO
UPBEAT
FUN
DISCOVERY
RELIABLE
CHOICES
ENERGY OF DRINKING OCCASION
HIGH TEMPO
02/06/2016 18:01
02/06/2016 18:01
CATEGORY DRIVERS
Through our research we have identified six ways to drive growth for cider. These are the Category Drivers.
Each category driver can work on its own, or in combination, to drive growth in the category.
TRY ME! If, as an industry, we are going
to encourage more consumers to drink
cider which is one of the most important
consumers dynamics in ANY category
we need to focus on driving consumer trial.
A positive drinking experience will likely lead
to repeat purchase, so its the consumers
first purchase which matters most. A cider
festival is a great way of driving product trial.
02/06/2016 18:01
CIDER
IN THE
ON TRADE
16526 WESTONS CIDER REPORT_2016_A4_V10.indd 8
02/06/2016 18:01
ON TRADE MARKETPLACE
49
FREE TRADE
+1.5% YOY
CIDER
VOLUME BY
4 % FLAVOUR
PEAR
-30.7% YOY
APPLE
-5.7% YOY
CIDER BY SEGMENT
We divide the cider category in the On Trade into four segments:
MAINSTREAM is predominantly draught brands such as Carling, Strongbow
and Somersby. This segment is growing volume sales by +3.5% YoY.
5%
4%
TRADITIONAL /CRAFT
-8.4% YOY
SUPER
PREMIUM
+2.8% YOY
41%
SUPER PREMIUM is draught cider such as Mortimer's Orchard and Aspall which
enjoy a price premium. The segment is growing at +2.8% YoY, as consumers trade
up within the category and the category premiumises.
6%
CIDER
VOLUME BY
SEGMENT
PREMIUM
MAINSTREAM
-1.3% YOY
50 %
Fruit cider is growing by +34% YoY and now accounts for 26% of cider volume.
It accounts for 60.3% of packaged cider, but growth has slowed to +7.8% YoY.
It has been introduced on draught, where it accounts for 9.5% of draught
cider volume.
FRUIT
+34% YOY
70
Apple cider is declining by -5.7% YoY but still represents 70% of cider volume.
CIDER
VOLUME BY
TENURE
23 %
Over 70 new cider lines have been recorded by CGA in the On Trade over the
last two years: a good number were packaged fruit ciders and draught fruit
cider also made a strong debut. Apple has seen its share of innovation too, both
on tap and in bag-in-box. Outlets are ringing the changes to keep their offer
fresh for consumers, in winter months as well as summer.
Cider is growing in Managed outlets (+1.4% YoY) and Free Trade (+1.5% YoY),
but has declined in Leased & Tenanted outlets (-1.1% YoY).
MANAGED
+1.4% YOY
2 8%
MAINSTREAM
+3.5% YOY
02/06/2016 18:01
The TOP 5 DRAUGHT CIDER BRANDS account for 76% of draught cider volume and have
collectively increased volume sales by +5.8% in the 52 weeks ending 23rd January 2016:
STRONGBOW
DARK FRUIT
STOWFORD
PRESS
SOMERSBY
THATCHERS
GOLD
STRONGBOW
1 2 3 4 5
The next five draught cider brands account for 11.6% of draught cider, with collective growth of +7.4% YoY. These are Aspall,
Magners Golden Draught, Carling British Cider, Symonds Founders Reserve and Westons Old Rosie. Importantly, the Top 10
leading draught cider brands offer consumers a choice across all four category segments (Mainstream, Premium Mainstream,
Super Premium and Traditional/ Craft cider). There are 84,700 outlets stocking draught cider. 44% of outlets have two or more
cider taps per outlet, so consumers have an increasing opportunity to choose either a mainstream cider or a trade up brand.
CGA reports that the rate of sale of draught cider increases in outlets where there are more ciders on the bar. This will tend
to be in larger outlets. Rate of sale is more than 70% higher with two draught ciders, and higher again with three or more.
PACKAGED
The TOP 5 PACKAGED CIDER PRODUCTS account for 54.1% of packaged cider volume, and they
are collectively in decline of -4.9% YoY. The most popular flavours of the fruit brands are berry flavoured.
Packaged cider in the On Trade is more fragmented than draught cider, with a plethora of small brands.
The average fridge stocks 4.4 cider products.
BULMERS
ORIGINAL (APPLE)
BULMERS
MAGNERS
ORIGINAL (APPLE)
KOPPARBERG
KOPPARBERG
MIXED FRUITS
1 2 3 4 5
The next five packaged cider SKUs account for 17.8% share of packaged cider, and include Rekorderlig, Stella Artois
Cidre, Kopparberg and Magners Pear.
02/06/2016 18:01
TRADITIONAL/CRAFT
The TOP 5 BRANDS IN TRADITIONAL / CRAFT CIDER account for 45.6% share of the segments volume
and have collectively grown by +7.2% YoY. As there is quite a long tail within the segment, so we believe outlets
can best grow their cider sales by stocking brands which have gained some level of consumer awareness and
recognition, and which add variety to their cider offer.
ORGANIC CIDER
1 2 3 4 5
INNOVATION
POWER
OF NEW
CGA recorded 39 new products in the On Trade in 2015, of which 11 were Fruit ciders, 26 Apple
and one Pear. New lines included Vintage, Cloudy and Organic ciders. They were across a range
of brand owners, both large and small.
The pace of change is likely to increase as suppliers and operators develop their offer to attract
more consumers to cider, to drive more cider occasions and increased consumer spend on cider.
CIDER
PASSION
Cider Passion has been identified as another important category driver for cider.
With innovation comes the need for consumer education about the new cider, through
consumer communication and visibility in outlet. The category driver Enhanced
Experience means that how the cider is served will influence the consumers drinking
experience and will impact on their future purchasing decisions.
ENHANCED
EXPERIENCE
02/06/2016 18:01
+2.7% YoY
-1.7%
100
-0.9%
171
+3.7%
308
ONE
TAP
TWO
TAPS
THREE
TAPS
46
OF
18 YEARS +
DRINK CIDER IN
THE ON TRADE
CRAFT CIDER IS
EXPECTED TO BE THE
TREND IN 2016
02/06/2016 18:01
49
FREE TRADE
+1.5% YOY
2 8%
CIDER
VOLUME BY
TENURE
SCOTLAND
7%
23 %
NORTH
EAST
6%
LANCASHIRE
11%
HARWEST
WALES
5%
6%
% OF CIDER
BY REGION
MIDLANDS
16%
ANGLIA
6%
LONDON
16%
HARWEST
ENGLAND
13%
SOUTHERN
10%
70
CIDER
VOLUME BY
%
FLAVOUR
4
YORKSHIRE
10%
FRUIT
+34% YOY
REGIONAL
PATTERNS OF
CONSUMPTION
MANAGED
+1.4% YOY
PEAR
-30.7% YOY
APPLE
-5.7% YOY
SCOTLAND
+0.2%
5%
4%
NORTH
EAST
+6.2%
TRADITIONAL /CRAFT
-8.4% YOY
SUPER
PREMIUM
+2.8% YOY
41%
CIDER
VOLUME BY
SEGMENT
PREMIUM
MAINSTREAM
-1.3% YOY
50 %
LANCASHIRE
+0.4%
MAINSTREAM
+3.5% YOY
HARWEST
WALES
+0.2%
YoY %
CHANGE
YORKSHIRE
+2.9%
ANGLIA
-2.2%
MIDLANDS
+0.5%
LONDON
-1.6%
HARWEST
ENGLAND
-2.2%
SOUTHERN
-0.9%
02/06/2016 18:01
RECOMMENDATIONS ON TRADE
Recommended Stocking Scenarios For Draught Cider
We recommend that, as a minimum, outlets should consider stocking an entry point draught cider, and this
will usually be a Mainstream cider, unless an outlet style dictates that this should be a Premium Mainstream
or Super Premium cider.
If there is a second cider tap available, outlets should consider making that tap a trade up cider brand.
If there are three or more cider taps available, then a bag-in-box Traditional / Craft cider should be considered,
ideally on a tap, to widen consumer choice, premiumise the offer and support those drinkers who want to try
something different.
SUPER
PREMIUM
CIDER
If there is room
for three ciders,
a Traditional/Craft
cider should be
included.
TRADITIONAL/
CRAFT CIDER
PREMIUM
MAINSTREAM
MAINSTREAM
If there is only
one cider on the
bar, it should
be a Mainstream
or Premium
Mainstream cider.
PREMIUM
MAINSTREAM
MAINSTREAM
PREMIUM
MAINSTREAM
MAINSTREAM
OR
If it is a certain style of
outlet, and there is only
room for one cider, it
may be appropriate to
have a Super Premium
cider on draught.
FRUIT CIDER
2 BRANDS
APPLE CIDER
2 BRANDS
PEAR CIDER
1 BRAND
02/06/2016 18:01
POWER
OF NEW
CIDER
PASSION
ENHANCED
EXPERIENCE
MORE CIDER
MOMENTS
TREND
FOLLOWERS
ENGAGED
PIONEERS
ACTIVE
BALANCERS
There would be a range of brands from craft to the more widely known
brands. This provides signposting for less experienced cider drinkers
along with the opportunity for discovery for Engaged Pioneers.
Cider suppliers will happily provide information about their featured
products, to help brief staff and educate drinkers. They will also
help create theatre around the event, to make it a really memorable
occasion for consumers.
02/06/2016 18:01
CIDER
IN THE
OFF TRADE
16526 WESTONS CIDER REPORT_2016_A4_V10.indd 16
02/06/2016 18:01
48 %
OF HOUSEHOLDS
BUYING CIDER P/A
0.2% YOY
VOLUME
SHOPPING TRIPS
FOR CIDER P/A
AVERAGE PRICE
PER LITRE OF CIDER
0.04
1.5L
0.1visit
9%
10 %
CIDER
VALUE BY
FLAVOUR
PEAR
-18%
YOY
1.86 32.4
1%
11.1
.8
FRUIT
+12%
YOY
FREQUENCY
APPLE
-5% YOY
02/06/2016 18:01
GLASS
-2% YOY
7%
43
CIDER
VALUE
BY PACK
FORMAT
39%
PLASTIC
-9.3% YOY
CAN
+0.2% YOY
%
1%
BAG-IN-BOX
-0.7% YOY
MAINSTREAM
-1.5% YOY
PREMIUM
-3.2% YOY
1%
CIDER
VALUE BY
SEGMENT
35%
36%
TRADITIONAL/
CRAFT
+5.2% YOY
8% 2
VALUE
-5.2% YOY
Cider By Segment
Cider is a large category, so to help us navigate we divide the
cider market in the Off Trade into four segments:
VALUE Largely plastic bottle led brands such as Frosty Jacks
MAINSTREAM Mainly can led brands such as Strongbow
PREMIUM Mostly glass bottle led brands such as Kopparberg
and Magners
TRADITIONAL/CRAFT Broadly single glass bottle brands from
independent producers such as Westons and Aspall
When market growth of the segments is considered, the premiumisation trend
is once again evident with only Traditional/Craft Cider in growth.
Own Label
Own label fruit cider is only worth 1% of total own label cider,
while in the total cider category fruit cider is worth 29.3% of
all cider sold. Therefore, there is a potential opportunity for
retailers to develop their own label fruit cider propositions.
5%
PEAR
-20% YOY
4%
APPLE
-10% YOY
OWN LABEL
CIDER VALUE
BY FLAVOUR
1%
FRUIT
+2% YOY
Source: IRI
02/06/2016 18:01
THE TOP 10
TOP 10
OFF TRADE CIDER
MANUFACTURERS*
1
2
3
4
5
6
7
8
9
10
#
#
MIXED FRUIT
#
#
#
#
#
#
10
Source: IRI
02/06/2016 18:01
Apple cider is still by far the largest flavour variant in the cider marketplace. It has declined by 5.4% YoY
yet still accounts for 61% of sales by value. Within Apple cider there is a clear premiumisation trend, where
traditional premium cider increased by 6.6%, whilst value cider has declined by 6%. The top 10 apple cider
brands make up 80% of total cider sales, with 304 cider brands making up the other 20%.
Strongbow is the largest brand in apple cider, which despite
some years of decline, still represents just under a third of apple
cider value sales in the Off Trade. The performance of Strongbow
apple will inevitably have a disproportionate effect on the overall
performance of apple cider.
Within the top 10, only three apple cider brands are in growth:
Henry Westons Vintage, Thatchers Gold and K Cider. All of these
STRONGBOW
FROSTY JACKS
MAGNERS ORIGINAL
HENRY WESTONS
PEAR
Pear cider and Perry currently sit between two posts. On the one hand there are the Pear extensions of cider
brands such as Bulmers and Magners, on the other hand there are the brands that emulate wine credentials
to establish their positioning in the marketplace.
Traditional Perry, made from genuine perry pears by independent
and craft producers, is a niche product within pear cider. Traditional
Perrys size and growth is limited by the availability of perry pears,
as there are a finite number of perry pear orchards in the UK.
LAMBRINI
KOPPARBERG
PEAR
COUNTRY
MANOR
MAGNERS
PEAR
BULMERS
PEAR
Source: IRI
02/06/2016 18:01
FRUIT
Fruit cider in the Off Trade is growing by 12% YoY and is the strongest performing of the three flavour profiles.
The total number of fruit cider brands
available in the Off Trade is 120, so there has
not been a significant increase from a year
ago when there were 118 fruit cider brands.
Strongbow Dark Fruit has more than
doubled its turnover in two years to
become the largest flavoured cider. The
growth of this brand has moved fruit cider
from being a glass bottle dominated
category to one where cans now make
up 27% of fruit cider sales.
Within fruit cider the dominant flavour profile
is berry flavours, which make up 85% of
STRONGBOW
DARK FRUIT
KOPPARBERG
MIXED FRUIT
KOPPARBERG
STRAWBERRY
& LIME
BULMERS
NO17
REKORDERLIG
STRAWBERRY
& LIME
INNOVATION
Cider category SKU count is declining and innovation is slowing.
805
776
CIDER SKUs IN
MARKETPLACE MAT
TO 28 FEB 2016
3.1 MILLION
SALES IN ITS FIRST YEAR.
57
SKU LAUNCHES
AND 95 RETIRED
SKUs IN MAT
TO 28 FEB 2016
Source: IRI
02/06/2016 18:01
CIDER RETAILERS
Cider sales in the Off Trade channel now make up
64% of total cider volume sales and 37% of cider
value sales. The differential between volume and
value percentage is down to the price per litre
achieved for cider in the Off Trade being much
lower than that achieved in the On Trade.
Average price per litre in the Off Trade for cider currently stands at
1.86, and has increased by 0.5% since the same period last year.
This shows the cider category is bucking the wider trend of food
and drink deflation of -0.3% and reflects the wider trend towards
premiumisation in cider.
02/06/2016 18:01
market share 1.5% above its total grocery share, as does Co-op.
Co-ops strong performance combined with the strong performance
in Independents & Symbols and Others is a reflection of ciders
strong performance in convenience shopping missions.
INDEPENDENTS
& SYMBOLS
OTHERS
% SHARE
Source: KANTAR
02/06/2016 18:01
5%
ERS
OTH
5%
CIDER
VALUE BY
RETAILER
R
MO
7%
TE
SC
CO-OP
7%
8%
WAITROSE
3%
12
S
RI
AS
DA
ALDI
2%
O
NS
SAIN
SBURYS
15
%
LIDL
-3.7% YoY
-2.3% YoY
INDEPENDENTS
& SYMBOLS
16 %
PEAR
-18% YOY
9%
CIDER
VALUE BY
FLAVOUR
1%
2
10%
71%
FRUIT
+12%
YOY
APPLE
-5% YOY
02/06/2016 18:01
REGIONALITY
SCOTLAND
12%
PLASTIC
-9.3% YOY
7%
GLASS
-2% YOY
39%
43
CIDER
VALUE
BY PACK
FORMAT
CAN
+0.2%
YOY
NORTH
EAST
5%
LANCASHIRE
11%
WALES
WSW
18%
% OF CIDER
BY REGION
YORKSHIRE
10%
ANGLIA
7%
MIDLANDS
15%
LONDON
12%
SOUTHERN
10%
1%
BAG-IN-BOX
-0.7% YOY
HOUSEHOLDS IN THE UK
CONSUME AN AVERAGE OF
32.4 LITRES
OF CIDER PER YEAR
YoY %
CHANGE
SCOTLAND
-2%
NORTH
EAST
-1%
LANCASHIRE
-3%
WALES
WSW
-4%
YORKSHIRE
-2%
ANGLIA
-3%
MIDLANDS
-2%
LONDON
-2%
SOUTHERN
-3%
E
OY
02/06/2016 18:01
Ideally cider should sit between wine and beer, as cider is more likely
to appear in the repertoires of beer drinkers and wine drinkers, than
wine in a beer drinkers repertoire or beer in wine drinkers repertoire.
Fruit Cider accounts for 30% of total cider and, therefore, should
take up around a third of shelf space.
Ensure out of stocks are minimised by stocking a limited range of the
best sellers, rather than trying to fit in one of every cider available.
BEST
WINE
BEERS
BOTTLED
CANNED
PREMIUM CIDERS PREMIUM CIDERS
WINE
BETTER
BOTTLED
TRAD/CRAFT CIDERS
(eg. KOPPARBERG
MIXED FRUIT)
WINE
BEERS
(eg. MAGNERS
ORIGINAL)
CANNED
MAINSTREAM CIDERS
BEERS
GOOD
(eg. STRONGBOW)
WINE
WINE
VALUE
CIDERS
(eg. FROSTY
JACKS)
TO CIDER
BEERS
TO BEER
02/06/2016 18:01
Supermarkets
Typically the average UK supermarket has four bays for a cider fixture, adjacent to the other beer, wine and
spirits ranges in store; therefore, our recommendations are based on four bays of cider. Four bays is really quite
a lot of space and affords a supermarket the opportunity to meet the needs of all six consumer types, all six
need states and all six category drivers.
Apple cider is still the dominant cider type on shelf and this should
be reflected in the ranging. A space split of two thirds apple and
one third fruit is reflective of the current sales patterns and optimal
for the current marketplace.
The six category drivers we mentioned earlier are all contributing to
a premiumising category and this should be reflected in the ranging.
Supermarkets do not really stock a range of value ciders, so these
do not need to be considered as part of the ranging.
GOOD
BETTER
BEST
BAY 2
BAY 3
BAY 4
LARGE PACK
TRAD/CRAFT CIDERS
SINGLE BOTTLED
TRAD/CRAFT CIDERS
SINGLE BOTTLED
TRAD/CRAFT CIDERS
SINGLE BOTTLE
FRUIT CIDERS
BEERS
SINGLE BOTTLE
PREMIUM CIDERS
SINGLE BOTTLE
PREMIUM CIDERS
SINGLE BOTTLE
PREMIUM CIDERS
SINGLE BOTTLE
FRUIT CIDERS
AND BULMERS)
(eg. KOPPARBERG
AND REKORDERLIG)
4 PACK CANNED
4 PACK CANNED
MAINSTREAM CIDERS MAINSTREAM CIDERS
4 PACK CANNED
FRUIT CIDERS
4 PACK BOTTLED
FRUIT CIDERS
(eg. STRONGBOW
DARK FRUITS)
2L PET
MAINSTREAM CIDERS
MULTIPACK
MAINSTREAM
CANNED CIDERS
MULTIPACK PREMIUM
BOTTLED AND
CANNED CIDERS
(eg. STRONGBOW)
(eg. KOPPARBERG
AND REKORDERLIG)
(eg. KOPPARBERG)
MULTIPACK
FRUIT CIDERS
(eg. STRONGBOW DARK FRUITS,
BULMERS AND KOPPARBERG)
TO FRUIT CIDER
02/06/2016 18:02
H. Weston & Sons Ltd, The Bounds, Much Marcle, Ledbury, HR8 2NQ
02/06/2016 18:01