Cider Focus: It takes all types

Sitting in the beer garden, catching the first warm rays of the year are the Old Summer Dabblers. Meanwhile, the Enthusiastic Explorers are looking...

Sitting in the beer garden, catching the first warm rays of the year are the Old Summer Dabblers. Meanwhile, the Enthusiastic Explorers are looking for something unusual to drink and are leaning over the bar trying to spot interesting bottled ciders in the back bar.

The Trend Followers have booked an area at the back of the pub and are well into their first bottle of cider over ice as more friends arrive. And the Young Cider Habituals are nursing a pint of pear cider while deep in conversation on the sofa.

Welcome to the world of cider as seen by the UK's second largest cider producer, Gaymer Cider Company.

The names may sound odd, but these categories of drinkers and the insight they give into drinking habits are the result of a year-long research project by the company to find out just who exactly is drinking cider, why, and how both brand owners and licensees can influence consumers to buy more.

For the project, entitled Cider Nation, the buying patterns of more than 1.4 million consumers were analysed. A further 12,000 cider drinkers were interviewed and visits to pubs, bars and off-licences were carried out to see how people choose and drink cider. The results span the whole of the UK, with researchers taking data at varying times of the day and from a range of styles of pubs and bars.

That's a hell of a lot of effort. So what was the result? Was it worth it? In a nutshell, did the resulting information, nay insight, justify what Gaymers managing director Peter Spencer would only refer to as a "substantial" outlay for the company?

"We've spent a significant amount of time and investment on this research, which we know is going to drive cider's prominence in the marketplace," he says.

"We've undertaken this project to grow the cider category and also to provide valuable information and insight to our customers. We have already presented this research to many of our customers and the feedback has been very supportive.

"Some results were as we expected, some weren't. I think we've all been guilty of focusing on just two types of cider drinker so far. Those are the traditionalists and the people who have been drawn in through cider over ice. Cider stocked at the bar does not reflect usage and so sales are being limited. There are a lot of easy wins."

Imbalance

The headline results are that the total cider category is currently worth £2bn. Gaymers now reckons that can grow to £3bn in five years and say growth of £312m is possible over the next 18 months.

A key finding of the research is an imbalance between what products are selling and what was is actually present on the bar. For example, RTDs have a 12 per cent share of volume sold from the back-bar, but currently claim on average 28 per cent of fridge space. Cider has 26 per cent volume and 16 per cent of space.

The conclusion is that pubs have not kept pace with the massive amount of cider innovation there has been, and the increase in the number of products over the last few years. Nor have they kept up with the demands of cider customers - meaning something as simple as restocking the fridge can lead to extra sales.

Six groups of drinker

From the results, Gaymers has identified six distinct groups of drinker.

The Cider Loyalist is a life-long cider drinker and is usually male and over 50 and is a fan of standard ciders which include brands such as Blackthorn and Strongbow. They represent a fifth of cider drinkers but account for 37 per cent of volume and are targeted at the expense of the other 63 per cent of drinkers out there, with the majority of bars stocking just one standard cider on draught.

The Trend Followers represent a quarter of all cider drinkers. They are easily influenced and are typically in their early 20s and in their first or second job. They favour modern ciders such as Gaymers, Magners or Bulmers and prefer bottled products.

They were also among the first to try cider over ice and are very valuable as they are good at bringing new people into the category. Yet not all bars cater to that group. Says Spencer: "It's an obvious opportunity."

Another major group licensees are missing out on cashing in on are the Young Cider Habituals. They drink cider all year round and tend to favour the modern ciders, but have particular interest in fruit and pear. The represent a fifth of volume but again sales are being missed by those that don't stock it.

Curious Traditionalists represent 15 per cent of drinkers and nine per cent of volume and like unusual ciders. Often drinkers of wine, when they look for cider they want something quirky and different and are keen on the heritage and provenance of what they drink.

Enthusiastic Explorers represent

10 per cent of drinkers and favour buying in the off-trade as they like the variety. It there are no pear, fruit or unusual ciders they will not buy. And Summer Dabblers like to drink cider when the sun is out.

"We worked out that the most catered for were the Cider Loyalists or Summer Dabblers," says Julie Gilroy, customer marketing controller at Gaymers. "Most pubs tend to stock one mainstream cider which obviously then alienates 60 per cent of drinkers. This means by adapting product range, there are big opportunities for long term growth."

Peter argues that space should not be continued to be dedicated to declining products.

"Cider is growing at 17 per cent in the off-trade and only four per cent in the on-trade. Relatively this is a good performance, but the figure is being kept down as the range of ciders stocked is not meeting the needs of the consumer. Over 60 per cent of cider drinkers are not being marketed to," he says.

"Four in 10 consumers buy cider in the off-trade, but only two in 10 buy it in the on trade. For that to be half as many shows there is definitely something missing."

Unlocking sales

So what can be done to unlock further sales?

The research found that 62 per cent make the decision to buy cider when inside the bar, first looking at what everyone else is drinking meaning glassware is important. They then check the fonts, meaning a big range including a modern cider is important as at this stage most drinkers have made their choice.

"From finding how important pear is to a large number of drinkers and the power it has to pull new people into the category we are now very resolute on maintaining pear on draught where our competition seem to have given up. We think it's a really big opportunity," says Spencer.

The last thing people do is check the fridges. But as mentioned, the space currently given to products doesn't represent what sells.

The overall advice from Gaymers is that cider needs more taps on the bar, including at least one modern or if food-led a specialist cider such as Addlestones, as well as a standard. It says the number of taps for declining categories such as lager and ale need to be reduced.

The back-bar should have some bottles on to show range as people see this before the fridge, and more space needs to be made in the fridge with pear and fruit ciders, which are a must, clearly separated. Tasting notes for staff or luggage labels on fonts for specialist ciders are also recommended.

Gaymers is already working with its customers to implement changes recommended by the research and Spencer says he urges both licensees and cider makers to work to cater for existing drinkers that are being under represented in the on-trade. It also says its new product development will be heavily informed by the results, so the smart money is on a fruit-flavoured cider from the Somerset-based maker before the summer.

"Licensees need to help consumers more frequently buy cider. It needs to be visable all year round," says Spencer. "Cider is not stereotyped any more, it doesn't have baggage and has become part of the repertoire. Huge amounts have been invested by ciderm