“Premium cider now accounts for 34.5% of all cider volumes, yet this has been driven by two diverging offers responding to differing consumer needs,” says CGA Strategy spokeswoman Rachael Chard, adding that “the most noticeable growth has been generated by flavoured packaged products, which have captured the attentions and wallets of younger, often female consumers. With a sweet taste profile, these products found a natural heartland in high-tempo, inner-city pubs and bars, but have expanded in recent years and are now readily available in many outlets”.
The divergence of two trends
Chard explains that the second growth area is “more understated but no less important and has been from more high-quality, traditional — typically apple — ciders” and, “unlike flavoured ciders, we typically see these brands in lower-tempo outlets, often with a strong food offering and appealing to a slightly older, more discerning drinker”.
In line with these trends, Chard points out that “drinkers are willing to pay more for heritage and quality, with many brands now working hard to demonstrate these aspects of their pedigree. Given this, it is
no surprise to see the number of premium cider stockists increase year-on-year, with many licensees choosing to provide their customers with alternatives to the customary standard apple cider”.
Premium packaged: fun focus
Anthony Mills, head of European marketing for Savanna Cider, agrees that “the premium end of the market is driving interest in cider” and notes how “consumers appear to be willing to pay a small price premium for a quality cider — it’s a trend that looks set to continue”.
And Rob Calder, head of marketing at Kopparberg, says there has been “continued growth of fruit cider, driven in part by those brands at the premium end, which deliver new interest and investment behind growth variants”.
Mills identifies that “one of the main drivers of the cider market’s success in recent years has been its accessibility to appeal to new user groups, such as women and 18 to 24-year-olds. In particular, the premium sector is proving increasingly popular with a younger demographic, who are increasingly searching for quality ciders, like Savanna, which offer something genuinely different and appealing”.
One simple way cider brand owners have answered this need has been through launching weird and wonderful flavours.
Linsey Adams, customer marketing manager at Chilli Marketing, says Swedish fruit cider brand Rekorderlig “has continued to build on its approach to bringing seasonality into the flavoured cider market to great success” and adds that “summer 2014 will see the launch of a new limited-edition flavour, Rekorderlig Apple & Guava”.
Last summer also saw the re-launch of Brothers Cloudy Lemon Cider to meet consumer demand.
“Lemon was discontinued in 2011, and ever since Brothers has been inundated with requests from consumers to bring it back. Now back, Cloudy Lemon is a firm favourite with consumers and it has national listings with Stonegate [Pub Company], Matthew Clark and Tenpin due to its naturally sparkling refreshment,” says Cheryl Sheppard, head of marketing at Brothers Drinks Co.
Premium traditional: food
Brands that can demonstrate they are focusing on the quality of liquid and also adhere to the changing dynamics in the marketplace are experiencing success by hitting both trends head-on.
“It’s a really interesting category that’s being affected by a number of key drivers,” says Chris Hill, founder of Orpens Cider.
"The one that stands out for me is the fact that consumers are really focusing on quality — not only in beverages but across all things gastronomic. Gone are the days when an average cider or beer is acceptable. People want to consume products that have real effort and skill behind them with a real story with which they can connect.”
Similarly, at Thatchers, hitting both the premium trend and the fruit-cider fascination head-on is translating into sales growth.
“We are seeing consistent growth across all parts of the on-trade for our ciders, whatever the style of outlet,” says Martin Thatcher, managing director at the company.
“Different outlets have different drivers for the style of cider to stock — pubs and clubs attracting a younger profile will opt for fruit ciders, such as Thatchers Mixed Fruit, whereas Thatchers Gold is rapidly gaining distribution across all styles of outlet, from food-led pubs to quality locals. Outlets that recognise the value in having a range of cider styles enjoy brands such as Heritage on draught, or Old Rascal in bottles, which will appeal to those looking to expand their cider repertoire with great-quality drinks — from a trusted brand with genuine heritage behind it,” he points out.
Andrew Quinlan, managing director at Orchard Pig cider, based in West Bradley, Somerset, says that, for his business, it’s all about the cider itself and, by encouraging trial, the brand is gaining a following.
“We’ve had a great year and more and more people are asking for us at their pubs or picking us up off the shelves. We have focused on making our ciders available in as many bars and outlets as possible to get consumer trial. Our success in spreading the word has led to strong growth, as well as a great rate of sale. Trial is key for us and our taste wins us fans. The BBC and Michel Roux Jr are certainly big fans, having included us on [the BBC series] Food & Drink only last month,” adds Quinlan.
In line with the trend for pairing cider with food, the Celebrity MasterChef 2013 champion and comedian Ade Edmondson has teamed up with Merrydown Cider to cook three new recipes using the cider as an ingredient. According to Edmondson, “the great thing about cooking with Merrydown is that, if it all gets a bit too hot in the kitchen, you can just drop everything and have a lovely glass of cider”.
Heineken’s category and trade marketing director Andy Turner, who looks after brands including Strongbow, Bulmers and Old Mout, says there is still a lot of potential for the category. He uses the wine category and how its availability and presentation in pubs and bars has evolved dramatically to illustrate his point.
Turner adds: “We are seeing year-on-year sustained growth of the category. There is headroom within it. Think about wine in the 1980s in the on-trade — the opportunity exists for cider in terms of premiumising the category and having a broader range.”
David Sheppy, managing director at Somerset-based Sheppy’s Cider, says: “Our sales are continually developing. Last year we saw our business grow by 30% — compared to 15% the previous year. We expect that growth will be even higher this year. As a small business, we can respond very quickly and innovatively to the rapidly-changing demands of the gastropub industry. For instance, we have introduced a 330ml bottle in three flavours: Raspberry, Somerset Draught and Oakwood.
This is something that few of our competitors or the bigger brands currently offer.”
Andrew Roache, external communications manager at Carlsberg UK, which owns the Somersby Cider brand that launched last spring, says: “We have now sold more than 25 million pints since launch in March 2013,” and points out that “more than 6,000 outlets have had the font installed, including accounts such as Orchid, Stonegate, Mitchells & Butlers, Punch and Enterprise”, which he believes shows that the Somersby brand is seeing a broadening of its market, and also garnering interest in the pubs and bars in which it is already stocked.
Evolution of the mainstream
Heineken’s Turner says that we are witnessing an evolution of cider in general because there is a readiness from men and women of varied ages to drink it during a wider number of different occasions.
“What you have seen over the past few years is a category that has gone into far more consumers’ repertoires than ever before,” he says, explaining that even with bolder moves towards premium brands, “six out of 10 pints of cider consumed are still Strongbow” cautioning licensees that Strongbow is “a big brand” and “if you want to sustain category growth you need to strengthen the backbone”.
Turner claims that Heineken, with Strongbow, Bulmers and Old Mout, is now “the largest cider provider in the UK” and still retains “leadership in the category”, so the trade needs to be mindful that — as a company — it “collectively sustains the growth of the category”.
The importance of serve
“Premium serve plays a huge role. What are the important things? Everything that you see, touch or taste,” adds Turner, pointing out that how we term premium and good quality comes down to so many different things, but the serve is of paramount importance.
Format is also crucial because a cider needs to be readily available to serve well from a pub, whatever the occasion.
Hogan’s Cider has introduced a three-litre, traditional, still, cloudy cider in a bag-in-box format. The company’s marketing manager Sarah Edmunds says: “We originally introduced a 20-litre
bag-in-box cider for the on-trade, which was really well received. The format is fantastic as the product quality stays consistent from first to last pint; also, once opened, the product stays fresh for six weeks.”
The Garden Cider Company launched a 20-litre bag-in-box of its Vintage Cider for the pub market last October, after noticing an increase in the popularity of the bag-in-box market.
“The product is 6% ABV, unfiltered and unpasteurised, and available in dry and medium variants. The cider has a six-month shelf life and will last for four weeks once opened,” says the company’s founder Ben Filby.
Old World & New World
Heineken’s Turner identifies that “if you take cider as a category, it’s moving fast and is dynamic” and says there are certain elements of the way cider is perceived that are changing. “What you’ve got are consumers with a thirst for experimentation. They seek something new and different,” he adds.
It could be suggested that the traditionally English cider category’s much-revered style is being challenged by international blends finding their way into the UK’s on-trade.
Rightly or wrongly, this is generating the “something new and different” that Turner suggests the next generation seeks and, as he earlier alluded to cider’s segmentation in the on-trade being comparable to the development of a pub’s wine range, perhaps we are seeing Old World and New World ciders being assessed in similar ways.
C&C Group launched Hornsby’s in the UK on-trade at the end of last year, offering a bold new proposition of “cider served the American way”.
“Hornsby’s Cider has a softer carbonation, designed to be enjoyed chilled and straight from its stylish 330ml long neck bottle,” says Ed Shoebridge, head of customer marketing at C&C Group.
Hornsby’s launched with two flavours: a light Crisp Apple (4.5% ABV); and Crisp Pear with Strawberry & Lime (4% ABV).
Also at C&C, the Magners core range was given a packaging refresh last November to “bring to life the Irish heritage through its design and give the premium cider a more contemporary look to create standout in the market”, says Shoebridge.
In addition, C&C’s Shepton Mallet Cider Mill has recently launched “a new prestige Italian craft cider — Montano — exclusively for the on-trade”, which
it points out was “naturally made with the finest Italian apples grown in the highest orchards in Europe, hidden within the Dolomite Mountains — just waiting to be discovered”.
Maybe the Old World and New World approaches have already become established, without anyone having already called them as such.
Has cider been reborn here?
For the past few years we have talked about how the cider category has really flourished in the UK, but while more brands become available, the rift between the traditionalists and newcomers has become
greater. To begin with, the added interest these brands drew to the category was a much-welcomed spotlight on it. But the addition of so many flavours and brands began to see those producing traditional ciders being ousted. In truth, fridge space has been an issue — together with maintaining a certain amount of integrity for the category as a whole.
Chilli Marketing’s Linsey Adams says that “the category has gone a long way to shed its old image” and termed the influx of new flavours and ciders in the UK as a kind of rebirth or evolution.
“Cider has been reborn in the UK and cider consumers have changed. They are experimental, like to try new things, and seek quality,” she adds.
Defining English cider
Aspall Cyder partner Henry Chevallier Guild says: “I’m still not convinced that those [fruit ciders that use artificial flavours] being associated with cider is really a good thing for English cider. It defines Swedish cider and maybe some of the New World ciders, but for English cider per se you wouldn’t traditionally associate that with not having real fruits in it.”
He adds: “With the two fruit ciders we have, the flavour comes from the fruit juice, that’s why they’re relatively expensive. Of course it would be much easier to take the juice out and put a flavour in and put an artificial colouring in. You’d then get into the argument about whether it’s just another alcopop. I think that, if it’s artificially flavoured, it is an alcopop. If it gets its flavour because someone has been really clever in having blended cider and fruit juices together, then that has a little more merit to it.”
Explaining sweetness
According to Chevallier Guild, palates are not actually getting sweeter as many suggest, but the act of processing and the prevalence of sugar and sweeteners has long been regarded as a route to success. The UK has suffered somewhat from the over-consumption of such products, he suggests.
“As children, we crave sweet things, because it helps us get energy and grow much more quickly. As we get older and once we’ve had our children, there is no longer the need to have that energy because we’ve passed the genes on,” says Chevallier Guild.
He explains that, usually, with the onset of maturity, “craving sweet things on the whole dies away and it’s why we prefer drier things as we get older — we become programmed not to like sweet stuff, so we don’t steal it from our children’s mouths. I don’t think people’s palates are getting sweeter, I just think we are having sugary stuff rammed down our throats. It’s a very simple fact that if you are going to take any product and strip out what was originally in it for whatever reason — for processing, convenience or whatever it is, then two of the easiest ways to put the flavour back in is to add sugar and salt.”
However, Chevallier Guild laments that, despite re-education, it may be too late to labour this point, because the truth is that many such products play to our weaknesses for simple refreshment and sweetness.
“I am also amazed by some of my friends who do drink the stuff [fruit ciders]. I ask ‘really?’ But if it’s a sunny afternoon, they’ve got a glassful of ice and it’s really unchallenging, they have their place,” he admits.
“But my view on those is still that, if you’ve flavoured it with something else [other than natural flavouring], it is an alcopop. If you’ve made a product that has been blended in an artisanal way, I don’t necessarily think it is.”
Fests: jury out on fruit ciders
Chevallier Guild says that, when it comes to cider festivals in the UK, there are big debates about whether fruit ciders ought to be “allowed” to enter, especially as these events are about broadening people’s repertoires and encouraging them to try something new.
“CAMRA [the Campaign for Real Ale] and the real cider movement are having all sorts of battles about whether they should let fruit ciders into their festivals. But then, they allow artificial sweeteners, so that blows that whole argument about real and premium out of the water.”
Belief in the category
In the meantime, whatever your position on cider definitions, belief in the cider category as a whole and the support behind it has flourished. Sheppy’s has made major investments in its business in the past 18 months in the belief that “the craft-cider boom is here to stay” and says the only challenges it faces as a company is ensuring there is balance between “the increased demand” and “the ability to maintain the brand’s roots in quality and provenance”.
For Somersby Cider, Carlsberg’s Roache says the company “will be bringing our consumers something new and exciting over and above our fantastic TV ad, in the form of a Facebook and YouTube campaign. We are working with Jake Yapp, one of the UK’s best up-and-coming comedians, who will be taking a refreshing view of popular culture in much the same way that the TV ad does”.
Matt Peach, senior brand manager for Somersby, says “we’ve developed an approach that feels perfect for our socially-savvy, male audience. We believe it creates plenty of ‘talkability’ online and has a big impact on awareness of Somersby”.
Marketing investment
Peach goes on to explain that “all of this activity adds up to a £10m marketing spend on Somersby this year — the biggest for the business [be-hind Carlsberg] and something that should make our customers confident in stocking Somersby, safe in the knowledge that this activity will drive significant consumer demand for the brand”.
Geoff Bradman, head of UK sales at Westons, says that the brand has also “significantly increased” support for its drinks in the past year “with a 73% increase in marketing investment”.
Bradman highlights how Westons has embarked on its “first national TV campaign, continued sponsorship as official cider of the England cricket team and developed a strong presence at key festivals and events with our range of traditional draught ciders and Wyld Wood”.
He adds that, “with regard to its new traditional still draught cider Rosie’s Pig, the company has also been successful”. Bradman points out that, even though “scrumpy ciders have traditionally been thought of as quite challenging”, the company has seen “phenomenal growth of Old Rosie, and now her sister brand Rosie’s Pig”, which “demonstrates that quality products and changing consumer attitudes are opening up new opportunities for scrumpy-style ciders”.
Aston Manor Brewery unveiled a new look for Kingstone Press Cider at the start of 2013. According to Glen Friel, sales and marketing director at Aston Manor, “in refreshing the look of the brand we are reflecting the fact that Kingstone Press is an authentic English cider with the visual cues, as well as the taste, to appeal to real cider drinkers”.
Friel adds that the brand also “announced a Rugby Football League [RFL] partnership, with the Kingstone Press Championship”, showing how it is really getting behind Kingstone Press from a marketing perspective.
Brothers Cider also began banging the marketing drum and celebrated its fifth anniversary by launching a new premium look last year.
The company’s Sheppard says that it has done this by “drawing on Brothers’ position as a family-run, independent, UK-based company with roots in live music” and that the redesign and extra focus on the brand stems from a desire to get “back to the £46m brand’s Glastonbury Festival roots”.
Aspall’s Chevallier Guild suggests there are other ways to develop and create products that sometimes brand owners with bigger budgets forget.
“We always start with the liquid. We do things in reverse to how a lot of other companies do them. Most of them will look at the market and see where there are gaps and think: ‘How can I fill those?’ Instead, we start with the liquid first, not the marketing,” adds Chevallier Guild.
He admits: “That’s quite an unusual way of doing things, a lot of people would come at it from the other direction and say ‘we need the brand to be here, we need it to look like that and sit at this price-point. OK — now make something that does that’.”
As Heineken’s Turner says: “What the on-trade has lacked is real innovation,” and, while cider is now understandably one of the most innovative and exciting categories within the sector, it is clear everyone has a different idea of what true innovation is and which direction cider will take next.