Cider/Perry in China

PROSPECTS

Vigorous volume growth is underpinned by a small sales base

There are only a handful of brands in cider/perry in China at present, led by Strongbow from Shanghai Asia Pacific Brewery and Somersby from Carlsberg Brewery; however, cider/perry is not a mainstream product for these two players. Due to the limited presence of brands and products in the domestic market, volume sales of cider/perry are relatively small in China.

Low product awareness limits development

Cider/perry has very low product awareness in China, with the core consumers concentrated in top-tier cities at present. Consumer education is mainly from major brands in the market, through product placement in TV dramas, for instance, represented by JA (Johnny Appleseed) cider from Anheuser-Busch InBev in Midnight Food Store in 2017.

The health-oriented nature of the product means it may have potential

Despite its niche presence in alcoholic drinks in China, cider/perry may have more potential once awareness is enhanced and growing acceptance is seen amongst local consumers. This is mainly because cider/perry is made from the fermented juice of apples or pears and has a refreshing taste.

COMPETITIVE LANDSCAPE

Shanghai Asia Pacific Brewery overtakes Carlsberg Brewery, to take the lead

Strongbow from Shanghai Asia Pacific Brewery overtook Somersby from Carlsberg Brewery for the first time in terms of total volume share in 2018. On the one hand, Somersby is not treated by Carlsberg as one of its core alcoholic drinks brands in China; on the other hand, Strongbow performs much better via internet retailing, including via Heineken’s online flagship store in Tmall.

Other international brands are on the rise

Apart from Strongbow and Somersby, other international cider/perry brands are on the rise in the local market, represented by Rekorderlig. With its brand originating from Sweden, Shanghai Rekorderlig (China) Co was established only in 2014, with a relatively short history in the market.

Domestic brands also emerge in cider/perry

In view of its strong potential and the fierce competition in other alcoholic drinks in China, domestic players are also eyeing cider/perry, with Jinan Yinxiang Liquor Co officially launching the first domestic brand of cider, CLOT, in October 2018, in two flavours – elderflower and passion fruit. Testing the water in Jinan, CLOT’s home base, and neighbouring cities, Jinan Yinxiang achieved great success, with rocketing demand for this affordable yet tasty cider which originates in China.

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