Westons Cider labels 2022 ‘the year of the apple’ as its seventh annual Cider Report describes a ‘levelling out’ of cider sales – led by the booming crafted segment (+51.4% vs 2 years ago).
Delving into the detail of last year’s off-trade cider category data, the report shows growth on pre-Covid levels as cider sales reached £1.2bn in total retail in 2021 – down -11.9% YOY, but +6.8% versus 2019.
Despite the category’s overall decline, the report unveils promising signs of cider’s sustained popularity – particularly within the rapidly-growing crafted cider segment, which is bucking the trend. Today, Westons Cider urges retailers to tap into these growth pockets in order to sustain momentum and build back towards year-on-year off-trade growth.
“While it was always going to be a challenge to lap a, quite frankly, unmaintainable boom in cider sales during 2020, in 2021, the category showed clear signs of promise,” says Darryl Hinksman, Head of Business Development at Westons Cider.
“The exceptional circumstances of 2020 rocked the boat– with off-trade sales achieving unprecedented growth and reaching record heights. Now that the dust is beginning to settle, cider sales are steadying once more – and household penetration, frequency and volume are up compared with 2019.
“Premium and crafted ciders are now driving the category forward. In spite of the challenging economic conditions shoppers are already facing this year – inflationary pressures and rising costs across the board – we expect the popularity of these segments to endure.
“Ultimately, shoppers need assurance that the ciders they’re purchasing can be relied upon to deliver on quality and taste. Although they might not be drinking as much, they’re looking to drink better. That’s why it’s more important than ever for retailers to dedicate plenty of shelf space to popular crafted propositions – such as our Henry Westons brand (+20.6%).”
YEAR OF THE APPLE
Westons’ seventh annual cider report shows that apple is the word – with apple cider increasing market share from 60.4% to 62.5%.
In the context of a bumper 2020, apple is down -8.8% YOY. However, apple cider’s performance remains relatively strong when comparing to fruit and pear which have seen steeper declines of -16.6% and -16.3% respectively.
Plus, compared with 2019 figures, value sales of apple cider are up an impressive +11.4% on 2019, whilst fruit or flavoured cider has seen a comparably minimum increase of +2.7% and pear is in decline.
What’s more, apple cider attracts a higher spend – with the average apple cider shopper spending an average of £81.30 per year. By comparison, fruit cider shoppers spend less than half this figure, at £36.01 annually.
“Traditional apple ciders continue to drive trade-up among shoppers seeking high quality serves. Representing a higher value sales opportunity, apple ciders should be every retailer’s priority when it comes to ensuring their cider fixture turns profit year-round,” says Tim Williams, Insight and Innovation Manager at Westons Cider.
“Yes, fruit cider has a higher household penetration (31.5% versus 25.9% for apple), but fruit cider shoppers are spending significantly less. And, given that fruit cider shoppers are more promiscuous – often buying into other categories – the overall growth of this segment continues to slow. Now stabilising at around a third of volume sales, all signs point to the idea that fruit cider will fail to reach the heights of apple.”
CRAFTED LEADS THE WAY
Crafted cider continues to be a winning proposition and was the only segment in growth over the last year – driving its value share of all cider sales from 14.2% to 16.4%. The top ten crafted brands represent 82% of crafted category value, and star-performer Henry Westons is spectacularly bucking the wider category’s downward trend (+20.6%).
This segment also commands a higher price per litre at £3.28, compared with the market average of £2.31, meaning that crafted cider continues to play an important role in driving value into the cider category.
When it comes to crafted cider by format, glass bottles are the ‘go-to’ at 69.3% share in 2021 compared with 63.8% in 2020. By comparison, can or other formats only make up 30.7% of crafted sales value, down from 36.2% the previous year.
Crafted cider also has a distinct demographic – affluent shoppers who are slightly older than those associated with total cider. 65% of crafted cider shoppers are ABC1, so tend to have higher levels of disposable income, whilst 20% are under 45.
LOOKING AHEAD in 2022
“After a record year in 2020, the off-trade has had some big numbers to try and match in terms of value growth,” explains Hinksman. “The good news is, we’re anticipating a return to category growth in 2022 as the nation’s daily routine returns to ‘normal’.
“2021 should be seen as a transitionary year where the market’s equilibrium was being restored. Now, as we look forward to 2022 there are some exciting opportunities – particularly those tapping into the growing demand for crafted and premium ciders.
“Whilst rising inflation may impact consumer spend overall, cider is still being seen as an ‘affordable treat’. To make the most of this, we must bring shoppers the traditional apple products that have always been at the heart of the category.”
The full report – including impartial stocking advice for retailers of all shapes and sizes across the off-trade – is available for digital download: westons-cider.co.uk/cider-report-2022
All data Westons Cider Report 2022 (IRI 52 w/e 1.1.22, Kantar Worldpanel 52 w/e 26.12.21) unless otherwise stated
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