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Cider - UK - October 2006

ISSUES IN THE MARKET
Definition
INSIGHTS AND OPPORTUNITIES
Women a perfect cider match
Apple Wine
MARKET IN BRIEF
Strong resurgence
Innovation saved the market
Premium market is key for future
Untapped markets
Cider with rosy future
FAST FORWARD TRENDS
Trend 1: “X for eXtreme”
General observations
Market touchpoints/implications
Trend 2: “The Golden Bullet”
General observations
Market touchpoints/implications
Trend 3:  “Pimp My Language”
General observations
Market touchpoints
Fast forward – an explanation
INTERNAL MARKET ENVIRONMENT
The ‘over-ice’ revolution – an image change
A cider a day keeps the doctor away
Pub education
Figure 1: Adults aged 18+ who visit pubs/bars for a drink or a meal, 2002-06
Premium pride
Meeting demand?
Where have all the apples gone?
Bottling up
Variation breeds opportunities
BROADER MARKET ENVIRONMENT
Local pride
The story of cider
And they can pay for it
Figure 2: Population by socio-economic status, 2001-06
Home is castle
The grey pound
Figure 3: age structure of the UK population, by gender, 2001-11
A hotter nation
Figure 4: Average summer temperature and sunshine hours in the UK, 2000-06
Environmental credentials
Crack down on binge drinking
Its effects on cider
COMPETITIVE CONTEXT
Relatively small but with potential
Figure 5: UK retail value sales of alcoholic beverages, by type, 2001-05
The potential of apple wine
Lessons from wine
Apple of British eye
Dynamics of bottled water
STRENGTHS AND WEAKNESSES IN THE MARKET
WHO’S INNOVATING?
Ice over
Flavoured ciders
Cider dressed as wine
Organic/Natural Cider
Future and Immediate Innovations
MARKET VALUE AND FORECAST
The rebirth of cider
Money makes money
Figure 6: UK retail sales of cider, by volume and value, 2001-06
Premium price, premium product
Figure 7: Mean price of cider per litre, 2001-06
Forecast
Figure 8: Forecast of the UK cider market, by value, 2006-11
Figure 9: Forecast of the UK cider market, by volume, 2006-11
 FACTORS USED IN THE FORECAST
SEGMENT PERFORMANCE
Cider is a premium product
Figure 10: UK retail sales of cider, by type and volume, 2002-06
Innovation is everything
Figure 11: UK retail sales of cider, by type and value, 2002-06
Disassociation from problem drinking
Chasing popularity
To everyone’s taste
Figure 12: UK retail sales of ciders: dry versus sweet, by volume, 2002-06
Regional price differences
Figure 13: The price of a pint of cider, by region, 2006
Having the bottle
Figure 14: UK retail sales of packaged and draught cider, by value, and volume, 2002-06
Figure 15: Percentage change of UK retail sales of packaged and draught cider, by volume and value, 2002-06
Cider goes upmarket
Figure 16: Packaging format of cider drunk, 2002-06
MARKET SHARE
On-trade
Figure 17: Top five cider brand shares in the on-trade, by value, 2002-06
Strongbow still strong
The Magners miracle
Off-trade
Figure 18: Top ten cider brand shares in the off-trade, by value, 2002-06
Strongbow the nation’s favourite
Perfect premium
Cheap and declining
Own-label warriors
Figure 19: UK leading cider brands in the on- and off-trade, by volume and value, 2006
COMPANIES AND PRODUCTS
Scottish & Newcastle Plc
Constellation Europe Ltd
Merrydown Plc
C&C Group Plc
Aston Manor Brewery
H. Weston & Sons (Weston’s Cider)
Aspall
Others
BRAND COMMUNICATION AND PROMOTION
Recent growth in advertising
Figure 20: UK main monitored media advertising expenditure on cider, 2001-06
TV wins out
Figure 21: UK main monitored media advertising expenditure on major cider brands, by media type, nine months till September 2006
Its deep
Sponsorship
Tie-ins
Stunts
CHANNELS TO MARKET
Growth in pubs
Figure 22: UK retail sales of cider, by volume and type of outlet, 2002-06
Multiple rule
Co-ops tie in to local
Staying in the new going out
THE CONSUMER – USAGE AND FREQUENCY
The cider turnaround
Cider chosen more often
Figure 23: Frequency of consumption of cider in the last 12 months, by heavy, medium and light drinkers* 2002-06
Who are the heavy cider drinkers?
Who are the medium and light cider drinkers?
THE CONSUMER – PERCEPTIONS
 IT’S A SUMMER THING
Good taste in men
Figure 24: Words/phrases associated with cider, by gender, May 2006
All year round
 NEGATIVE PERCEPTIONS
Cheap
Traditional Country Pubs
Warming the market
THE CONSUMER – TARGET MARKETS
Figure 25: Cider drinking habits and future intentions, May 2006
Part-time cider drinkers
What a refreshing change
Chilled and relaxing
Cool drink
Potential
Tempted
Figure 26: Words/phrases associated with cider, by drinking habits and future intentions, May 2006
The lapsed drinker
The hard win
Lack of connection
The cider refresh
Untapped market
Figure 27: Agreement with statements regarding cider, May 2006
Think cider
APPENDIX
Consumer research
ACORN
Advertising data
 ABBREVIATIONS
Broader Market Environment
Figure 28: Trends in personal disposable income and consumer expenditure, 2001-11
 USAGE AND FREQUENCY – DETAILED DEMOGRAPHICS
Figure 29: Frequency of consumption of cider in the last 12 months, by demographic sub-group, 2006
Figure 30: Frequency of consumption of cider in the home, in the last 12 months, by demographic sub group, 2006
Figure 31: Frequency of consumption of cider elsewhere, in the last 12 months, by demographic sub group, 2006
Figure 32: Adults aged 18+ who only drink cider either at home or elsewhere, by demographic sub group, 2006
 PERCEPTIONS – DETAILED DEMOGRAPHICS
Figure 33: Cider drinking habits and future intentions, by gender, age, social grade, marital status, lifestage, age of own children, Mintel’s Special Groups, working status, tenure, ITV region, ACORN group, technology usage, daily newspaper readership, commercial TV viewing, supermarket usage, household size and car usage, May 2006
Figure 34: Words/phrases associated with cider, by gender, age, social grade, marital status, lifestage, age of own children, Mintel’s Special Groups, working status, tenure, ITV region, ACORN group, technology usage, daily newspaper readership, commercial TV viewing, supermarket usage, household size and car usage, May 2006
Figure 35: Words/phrases associated with cider, by agreement with statements regarding cider, May 2006
Figure 36: Agreement with statements regarding cider, by gender, age, social grade, marital status, lifestage, age of own children, Mintel’s Special Groups, working status, tenure, ITV region, ACORN group, technology usage, daily newspaper readership, commercial TV viewing, supermarket usage, household size and car usage, May 2006
 TARGET MARKETS – DETAILED DEMOGRAPHICS
Figure 37: Cider drinking habits and future intentions, by consumer typologies, May 2006
Figure 38: Words/phrases associated with cider, by consumer typologies, May 2006
Figure 39: Agreement with statements regarding cider, by consumer typologies, May 2006
Figure 40: Consumer typologies, by gender, age, social grade, marital status, lifestage, age of own children, Mintel’s Special Groups, working status, tenure, ITV region, ACORN group, technology usage, daily newspaper readership, Commercial TV viewing,
Figure 40: Consumer typologies, by gender, age, social grade, marital status, lifestage, age of own children, Mintel’s Special Groups, working status, tenure, ITV region, ACORN group, technology usage, daily newspaper readership, Commercial TV viewing, supermarket usage and household size, May 2006

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