27/05/2016
AUSTRALIAN CIDER
MARKET UPDATE
BATLOW CIDER
CONFERENCE
May 2016
CIDER IN AUSTRALIA
• The scoreboard – “State Of Play”
• What’s Next – “Where to from here?”
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27/05/2016
CIDER IN AUSTRALIA
“The Numbers”
Cider in Australia is classified by some as a component of total beer
0.8%
% Value growth/decline
4.7%
-2.3%
6.2%
8.1%
12.4%
7.8%
-4.4%
26.9%
Total
Beer
Full
Strength
Prem
Intl
Mid
Strength
Low
Carb
Cider
Prem
Aus
Craft
Aus
100%
31%
20%
16%
13%
8%
5%
7%
% Value Share of Total Beer
Source: Aztec Lion Packaged Beer Read 25/08/13
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27/05/2016
Cider growth rates have slowed as the
market matures
Biggest GP%
Contributor to total
Packaged Beer
Category
9.1% Volume
Growth
Cider Sales
$510M
7.8% Value
Growth
8.3M cases (9LE)
National Dollars (000s) This Year vs Last Year
CIDER (Mix & Growth Contribution)
Apple
Pear
Flavours
• 72% of volume
• +10% MAT
• 19% of volume
• +10.50% MAT
• 9% of volume
• -0.2% MAT
MAT April 2016
+9.4% QTR
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27/05/2016
CIDER BRANDS (Performance)
Somersby still driving majority of value growth
Total Cider Sales
Declining brands
5 Seeds
Monteith’s
Rekorderlig
Kopparberg
$510M
+37M
Brands in growth
Mercury
James Squire
Strongbow
Pressman’s
in the last 52
weeks
Pack Formats
Category Performance - Total Cider - Australia Liquor - Value
MAT To 24/04/16
% of
category
Pack Configuration
Total Full Case
Total Multipack
Total Singles
Packsize
Total 375ml Or Less
Total 376-699ml
Total 700ml+
ABV RANGE
Total ABV <4.0% ABV %
Total ABV 4.1%-6.0% ABV %
Total ABV >6% ABV %
Dollars
(000s) %
Growth vs
YA
53
36
11
6.3
20.7
-16.7
85
14
1
14.1
-22.6
113.7
57
40
3
5.9
5.6
152.4
80% glass (-4%)
20% cans (+54%) – driven by 10 pack formats
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27/05/2016
CIDER IN AUSTRALIA
“What’s Next?”
Cider Innovation on a Page
1. Increase the cider category penetration by
converting cider considerers to drink
Objectives
2.Deliver greater customer value getting
consumers to buy cider on more occasions
3. Penetrate occasions where non alcohol
dominates
1. New liquid & manufacturing processes
In Scope
2. New flavours
3. New formats
4. New brands – caution required!!
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27/05/2016
INNOVATION PLATFORM CONTEXT: Qualitative research highlighted people regularly experience the
need to moderate alcohol consumption
All the while…
Desire to pace yourself over a long session or event
(e.g.. a long afternoon BBQ).
Desire to feel responsible when drinking around kids
and/or at events e.g.. weddings, work or with people
you don’t know very well.
You want to feel like you’re
staying in the occasion
rather than standing
outside of it.
Don’t want to be ‘that person’ who has too much and
stands out for the wrong reasons, especially in a social
media world that leaves you perpetually ‘one Facebook
post away from trashing your reputation’
Because you want to feel
like you are part of the
action and enjoy the
occasion
Mid week when you’ve promised yourself that you’ll
not drink to be a bit healthier
When you want to be able to drive (home) later…
Sometimes because you NEED to be able to drive later
Often because you’ve driven to an event as a deliberate
strategy to keep your ‘rubber arms’ in check
and/or give you a legitimate excuse for not drinking in
world where non-drinking has a social stigma
And because you don’t
want to cause
offence/awkwardness to
others by not drinking
2016 Cider Trends
Moderation
•
•
•
•
Self managed consumption
Low Alcohol
Low Calorie
Driven by a need to
maintain control or ability to
perform other activities
(e.g. drive, be responsible
for kids)
Craft Cider
• Small batch
• Inspired by Craft Beer
trend
• Provenance and
authenticity
• Interesting labels
• Consumer engagement
Organic
• Move away from sweet
• Umami-like ingredients
• Shiitake mushroom,
seaweed
• Herbal
• Promotes food matching
Sparkling + Rose
• Inspired by wine trends
• Michel Jodoin Champagne
method Cider made with redfleshed Geneva apples
On Premise – Dedicated Cider Bars
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