Cider/Perry in Indonesia

PRE-COVID-19 PERFORMANCE

Cider continues to gain acceptance through on-trade due to rising lifestyle trend of socialising over drinks Indonesia

Cider/perry remained a small but positively-performing category within Indonesia alcoholic drinks, dominated by off-trade demand but continuing to record higher volume and current value growth through the on-trade channel in 2019. The latter trend has been supported by price promotions in horeca outlets such as “happy hours” earlier in the evening or when purchasing a certain number of drinks, attracting local consumers, particularly younger adults of a legal drinking age, who appreciate the sweet flavour and low alcohol content, in addition to the rising lifestyle trend of socialising over drinks.

Offering competition to other low alcohol sweet-flavoured drinks, cider’s high unit price following the increasing excise tax results in slower demand in 2019

As cider is a relatively young and underdeveloped alcoholic drinks category in Indonesia, it offers further potential for growth and expansion, despite the stiff competition posed by other beverages with low alcohol content such as flavoured/mixed lager, soju and beer. However, manufacturers’ ability to start local production of brands such as Strongbow and increased distribution penetration, have led to greater consumer awareness in both off-trade and on-trade channels.

Indosarnia retains dominance of cider in 2019 due to first-mover advantage but local production by major players could offer price competition moving forward

Indosarnia PT retained its dominance of cider in 2019, supported by its leading brand Albens, which benefits from strong consumer awareness due to its first-mover advantage and extensive distribution through on-trade and off-trade channels in Indonesia including supermarkets and hypermarkets, which make it easier for consumers to purchase cider when they do their normal grocery shop rather than having to visit a specialist retailer. Albens maintains consumers’ interest, particularly young adults of a legal drinking age and female consumers, through its flavour variants including Apple and Strawberry, Original Fuji Apple, and Apple and Mango.

2020 AND BEYOND

COVID-19 impact

On-trade volume sales of cider-perry are now expected to fall by 28% in 2020 in light of the impact of COVID-19. This compares to an expected 11% rise forecast for 2020 during research conducted in May 2019 before the spread of COVID-19.

Recovery and opportunities

On-trade sales of cider/perry is predicted to make a tentative recovery from 2021 as horeca establishments including bars and restaurants are likely to continue to reopen following a further easing of lockdown measures in Indonesia. The volume growth rate is set to continue to strengthen over the course of the forecast period as consumers regain their confidence in spending longer periods of time outside of their home environment and socialise with friends and colleagues in bars.

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