Cider/Perry in New Zealand

PROSPECTS

Cider/perry continues to record strong growth

Cider/perry remained the best performing category in alcoholic drinks in 2018, with the renewed interest in the category seen over the review period continuing in 2018. While not enjoying the same level of distribution and penetration as beer and wine, increasing new product development activity in the category has helped drive volume sales growth.

Craft trend also prominent in cider/perry

With the craft trend heavily influencing beer in 2018, similar production techniques and an abundant supply of apples meant it was no surprise that the trend also remained prominent in cider/perry. Growing consumer interest in cider/perry helped drive volume sales, although the category is being repositioned as a more premium option owing to an influx of craft brands over the review period.

Average unit price rises in 2018 but modest growth expected over the forecast period

In line with ongoing premiumisation in the category, average unit price in cider/perry increased in 2018, comparing favourably to a flat unit price over the review period. Increasing resources dedicated to cider/perry production, leading to an increase in supply as well as stronger distribution, are expected to put some pressure on unit prices over the forecast period, although positive unit price growth is still expected, with premiumisation in the category is predicted to continue.

COMPETITIVE LANDSCAPE

Lion continues to lead

Holding the distribution rights to the Harvest, Strongbow and Bulmers brands in New Zealand, Lion - Beer, Wine & Spirits (NZ) continued to profit from a strong portfolio of specialist cider brands. However, its position in the category was largely derived from the presence of its Mac’s brand, which is well-positioned to leverage the craft trend.

DB Breweries continues to hold second place

DB Breweries is present through its Monteith’s, Rekorderlig and Old Mout Cider brands. The influence of the company on cider/perry over the review period was immense, with it claiming to have reinvigorated interest in premium cider, which is hard to dispute, given the strength of its presence in the category and strong focus on new product development.

Penetration of craft brands increases

Similar to what has been observed in beer, the penetration of craft brands in cider/perry continued to increase in 2018. Access to good quality apples and similar production techniques mean that many local craft breweries are also offering cider/perry products.

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