The success of crafted apple ciders will continue to set the pace of growth in the UK’s £1.1 billion off trade cider market this year, with focused ranging crucial for convenience retailers looking to capitalise on demand. That’s just one of the verdicts from Westons Cider’s ninth annual Cider Report as it once again reveals what will be hot – and what will not – in the world of cider over the coming year.
The cider maker’s comprehensive annual review – based on a deep dive into the latest industry data and trends – shows that the category is firmly back to its pre-pandemic norms, with the off trade making up 38% of value sales and 63% of volume.
The slight increase in value share (up from 37% in 2022) can be attributed to wider drinking trends, as well as price increases, with shoppers looking to drink less but better; a movement seen across other categories, including premium long alcoholic drinks (LADs), with stouts as well as world and craft beer all continuing to perform strongly.
And with convenience retailers making up 50% of the total off trade category, the good news is that there is further room to grow to take advantage of consumers’ changing tastes.
Crafted cider is going from strength to strength, outperforming the category as a whole. While total cider continues to grow (+2.8%), the crafted sector is outpacing the market (+12.2%).
As well as growing more quickly than the previous year, its share has increased in total grocery from 19.4% to 21.2% – the biggest share gain in the sector – adding £25.8 million to the category as a whole.
With this in mind, Wholesale Manager headed to Parfetts Birmingham, to chat to Darryl Hinksman, Head of Business Development for Westons Cider, and Mark Wright, Deputy General Manager at Parfetts Birmingham, about the market developments wholesalers need to be aware of.
To watch the video interviews, go to wholesalemanager.co.uk.
How much is the off-trade cider category currently worth?
DH: The cider category in the off trade is huge at the moment, it’s now over £1 billion. It’s in growth and cider is regularly bought by 40% of all UK households.
Is cider a key category for wholesalers?
MW: Cider is an important category that should not be overlooked. Exciting sub-categories such as crafted are attracting a new audience and helping our category grow. We have premium ciders, apple ciders and crafted propositions such as Henry Westons.
What are Westons’ most important brands?
DH: The crafted Henry Westons range is now worth £94.1 million and is our star performer in this channel, providing retailers with pack formats for every possible occasion. It’s also true to say that Stowford Press has grown significantly over the last 12 months as well. We’ve seen growth of 75%, giving sales of £3.7 million in this channel.
Which cider brands should wholesalers focus on?
DH: The main pack to stock, obviously, is Henry Westons vintage. The 500ml bottle is the best selling SKU in the UK. We now sell more than one every second, but easy to shop formats such as four packs, six packs and eight packs are also really important to key times of the year for family parties, Christmas, barbecues, etc.
Also, we ran an on-pack promotion on Henry Westons this year. You can see it’s still on the pack behind me. When we did this last year, it was one of the biggest promotions in the whole of the drinks trade, where we had 230,000 entries. It’s been very significant for us.
How can wholesalers maximise cider sales?
DH: To drive value sales, wholesalers need to prioritise premium apple ciders all year round. Apple cider accounts for two thirds of sales and this should help inform the position of products on shelf. Make sure you’ve got the right amount of space for apple ciders, and especially those bestselling ones like Henry Westons. Wholesalers should also remember that for many retailers and their customers, cider is an impulse purchase. So, it has to be available to be able to buy and to see. This means wholesalers should specifically ensure they’re well stocked ahead of all busy periods.
Mark, what is your advice to wholesalers to grow cider sales?
MW: Cider is increasingly becoming a year-round drink, autumn and winter in particular should not be overlooked with this category. Wholesalers stock up ahead of busy periods such as Christmas and crafted variants are ideal for autumn and winter drinking occasions.
What are the key cider sub-categories wholesalers should focus on?
DH: It’s key to focus on premium crafted apple ciders to drive growth. It’s the crafted apple brands that are delivering on this through heritage and provenance.
The category is outpacing the market, having grown at 12.2% in the last 12 months and importantly, at an average of £4.16 per litre in convenience, compared to total cider at £2.64. It’s really driving profit and value for the retailers. Of course, increased cost of living means that people are very, very value conscious. But what that actually means is they are looking for quality, provenance and heritage, and that’s delivered by Henry Westons.
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