'We’ve got ourselves into a really strong position... we're well placed to grow'

Westons Cider recently reported its best year yet, driven by the continued strong growth of its premium draught brands, the successful launch of its mulled cider into the off-trade, and increased distribution across all trade channels.

The company’s market share is now up to an all-time high of 5% and is accelerating ahead of a declining cider market. In the year to 31 March 2015 the cider producer posted turnover up 6% to £58.6m with pre-tax profits jumping more than 30% to £2m.

New commercial director Geoff Bradman, who joined the company from Aspall in 2012 and was just this month was appointed to the board​, is hugely positive about the future.

“While the cider market is currently flat, the traditional premium sector of the market in which we operate is in strong growth, currently growing by 7% year-on-year. We’ve got ourselves into a really strong position as category leaders of this sub-sector of the market and we’re well placed to grow all areas of the category further,” he told the PMA​.

Clear ideas​

Bradman says Westons strong performance is in part down to its right brand/right outlet strategy that has been implemented over the past three years. This means the company thinks really hard about which of its products is most suited to a particular outlet. It has also meant that it has exited Stowford Press from some more mainstream outlets in order to build its premium credentials.

“Previously we were quite unstructured in the way we did things. Our sales team were expected to adopt a classic sales-led approach rather than having a clear idea of where we were going with our brands, or why. So we adopted a right brand/right outlet strategy for the on-trade. Now we have very clear ideas about where, for example, Mortimer’s Orchard should be stocked and sold,” he says.

“There’s very little point a licensee stocking our brand just so we can notch up a sale if that licensee can’t then sell it. It’s a waste of everyone’s time.”

Super-premium cider Mortimer’s Orchard has grown by 50% in value year-on-year, according to Bradman, an indication that the cider category as a whole is premiumising.

Bradman says investment into the company’s range has delivered excellent performance across all key brands; Stowford Press has consolidated its position as the number three draught cider in the on-trade; its bag-in-box ciders such as Old Rosie are performing well and sales of canned craft brand Caple Rd are positive, he adds.

“Caple Rd for us has been fantastic even though it’s not huge volumes. It’s finding its way into the trade in exactly the way we wanted it to – kind of under the radar as it’s a craft product going into different outlets. That gives us a new route to market and helps us appeal to new and different consumers,” Bradman says.

On-trade support​

Overall the company is a firm believer in building brands in the on-trade and giving licensees products unique to that environment. “For the on-trade draught is key so Mortimer’s and Stowford are key brands. In the take home trade it’s more about the bottled ciders. We want to protect the on-trade from having to compete overtly with the grocery trade and give pubs something that is unique to them, capitalising on the ambiance and theatre of the on-trade,” he says.

That view is supported by big investment in marketing​ and campaigns over the past year which has seen the company support outlets with branded glassware and look to raise awareness and boost the premium credentials of its brands among drinkers.

Westons is also investing heavily into its site including additional storage tanks and to increase our pressing and fruit handling capacity. The firm has also just appointed former Hook Norton boss Adrian Staley as field sales controller responsible for leading and developing its on-trade business.

Innovation​

The company is now run by the fourth generation of the Weston family, which has been producing cider in the Herefordshire village of Much Marcle since 1880. It is proud of the traditional methods in its cider making process and more than 80% of the apples it uses are sourced locally from the three counties of Herefordshire, Worcestershire and Gloucestershire.

A number of new product launches are planned for next year – the first of which will be brought to market in the New Year. Bradman is wary of innovation for innovation’s sake, but believes the new launches will add value to the category. “As always the important thing is the quality of the liquid. If it is good and satisfies consumer need then growth will continue.”

One grey cloud on the horizon is the ongoing burden of duty. The cider industry enjoyed a cut in this year’s Budget, but cider makers are keen for government support to continue, allowing them to more confidently invest in the future. “If duty keeps rising then that will have a negative impact,” Bradman warns.

The shake-up of the tenanted pub market could also have a big impact for suppliers and prove quite challenging. Tied tenants choosing the market rent only-option could lose support and advice from suppliers but will have a new found freedom to choose which drinks to stock.

“As far as we’re concerned our right brand/right outlet strategy will still apply and if these outlets become more independent then that might be good for Westons. There will be more sales opportunities for our team,” Bradman says.