Cider/Perry in New Zealand

PROSPECTS

Craft trend continues to influence cider/perry

With an abundance of craft brewers in New Zealand and near saturation in beer, many craft breweries have turned their attention to growing their presence in cider/perry. Thanks to similar production techniques and a strong apple growing supply chain in New Zealand, many craft breweries have started producing cider owing to a surge in demand over the review period.

Cider/perry remains the best performing category in alcoholic drinks

Cider/perry remained the best performing category in alcoholic drinks in 2017. These products enjoyed a surge in popularity over the review period, with a focus on premiumisation helping to drive value growth and attract both men and women.

Premiumisation expected to drive unit price growth over the forecast period

Value growth in the category in 2017 was also supported by a rise in average unit price. Driving unit price growth was the changing dynamics in cider/perry.

COMPETITIVE LANDSCAPE

New distribution deal boosts Lion’s share

Having acquired the New Zealand distribution rights to the Harvest, Strongbow and Bulmers brands, Lion – Beer, Wine & Spirits significantly strengthened its presence in cider/perry in 2017, growing its volume share by 13 percentage points to take category leadership from DB Breweries. The company was previously present in the category only through its Mac’s Isaac’s and Speight’s Cider brands.

DB Breweries loses its leading position

Despite enjoying a strong increase in volume sales in 2017, DB Breweries lost its leading position in cider/perry to Lion. The company has long been present in the category through its Monteith’s and Old Mout Cider brands.

Category benefits from a high level of new product development

Similar to what was seen in beer over the review period, cider/perry has become increasingly fragmented, with a high level of new product development being observed in 2017 from craft breweries such as Moa, Panhead Custom Ales and Tuatara, to name a few. Additionally, specialist cider makers continued to grow their presence in the category, with Zeffer Cider securing almost NZD1 million in private equity funding to enhance its production capabilities as it seeks to strengthen the reputation of Hawke’s Bay as the cider capital of New Zealand owing to the abundance of apple growers in the region.

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