Cider/Perry in Azerbaijan

PRE-COVID-19 PERFORMANCE

Cider/perry retains niche status in 2019 despite growth

Economic improvements supported an ongoing recovery in total volume sales of cider/perry in 2019, after a sharp decline in sales in the early years of the review period. Growth in inbound tourism and improvements in product distribution via both off- and on-trade channels were other factors stimulating growth towards the end of the review period.

Supermarkets help to expand distribution but competition from other alcoholic drinks remains a challenge

Supermarkets remained the dominant off-trade distribution channel for cider/perry in volume terms in 2019. The channel continued to gain ground at the expense of independent small grocers, the second leading channel, thanks to the ability of leading supermarkets operators to offer a wider product assortment and more competitive prices.

International brands dominate, but local player ASK enters the market in 2019

C&C Group, which offers the Magners brand, continued to dominate cider/perry in total volume terms in 2019. Aside from its early mover advantage, the success of Magners is also attributable to its affordable price positioning.

2020 AND BEYOND

COVID-19 impact

On-trade volume sales of cider/perry are expected to fall by 30% in 2020 in light of the impact of COVID-19. This compares to an expected 4% rise forecast for 2020 during research conducted in May 2019, ie before the spread of COVID-19.

Recovery and opportunities

Cider/perry was struggling to make significant inroads prior to COVID-19 but ASK S?ki S?rab’s decisions to launch local manufacturing of cider could help to increase interest once restrictions are lifted. The high price of cider/perry compared to beer is one barrier to stronger growth, and local production could help to address this.

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