Cider/Perry in Ireland

PROSPECTS

Innovation responds to health and wellness trends to assist sales growth

Trends in health and wellness and the impact of the introduction of the Public Health (Alcohol) Bill is likely to see overall alcohol consumption levels fall back over the forecast period. However, this is expected to have less of an impact on cider/perry, which is highly dependent on seasonal sales and where there is less demand at present for economy brands due to strong loyalty to leading players such as Bulmers and Orchards Thieves.

Cost of cider production expected to increase post Brexit

Brexit will be a challenge to the cider/perry category particularly for players that operate on an island of Ireland basis and those that import their products into Ireland from the UK and via the UK from mainland Europe. The outcome of Brexit is still uncertain and with a no deal scenario still on the table, Great Britain will be outside the European Union Custom Union.

Premium products to drive value growth

Premiumisation is expected to assist value growth in cider/perry over the forecast period particularly as new product launches are expected to appeal to more consumer demand for greater variety and new tastes. There will continue to be more choice within the cider/perry category due to innovation from incumbents.

COMPETITIVE LANDSCAPE

Investment in its core brand and innovation by Bulmers

Bulmers remained the leading player in the category in 2018, maintaining it share for the first time in several years. The warm Irish summer and investment in the Bulmers brand including new flavour extensions and its newer brand Outcider enabled the company to avoid losing ground to competitors, most notably Heineken Ireland.

Increasing competition from Heineken

There was significant innovation in the category in 2018 in which cider choices had been traditionally limited. Heineken Ireland launched a new premium cider Appleman’s that has been specifically designed with Irish tastes in mind and only available on the Irish market.

Less activity in craft cider industry

There has been an explosion of microbreweries and micro distilleries in Ireland in recent years. However, the trend has not had an impact on the craft cider industry in spite of the wealth of raw materials in Ireland required for the production of cider.

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