Cider/Perry in South Africa

PROSPECTS

Cider/perry to be revitalised by product innovation

Product innovation is expected to revitalise demand in cider/perry as consumers embrace more variety. In response to the good reception of products launched during the review period, more manufacturers might venture into flavouring from spirits extracts like gin and vodka.

Distell will face tougher competition during the forecast period

Distell is expected to face intensified competition at the category level from rivals like Heineken South Africa. In addition, the expansion of microbreweries could put additional pressure on the company as many are expected to introduce premium craft variants targeting niche interests.

On-trade to increasingly become a key distribution channel

The intensified government awareness campaign is expected to put additional pressure on new entrants with a proposed ban on advertisement making it more difficult for them to reach their targeted consumers. As a result, smaller players are expected to partner with other microbreweries to benefit from their brewpubs, with other on-trade channels also increasingly becoming key selling points.

COMPETITIVE LANDSCAPE

Heineken South Africa benefits from strengthened marketing campaigns

Heineken South Africa recorded the strongest growth during the review period, with its brand Strongbow increasingly gaining shelf space. Such performance was mostly attributed to heavy investments in extended marketing campaigns conducted since 2016, with the brand been repositioned from a low-range to a mainstream product targeting millennial consumers.

Distell consolidates leadership through innovation

In response to intensified competition from both direct rivals and substitutes like flavoured beer, Distell introduced Edge, a premium cider that contains hops extracts. In addition, as consumers increasingly demand more variety in cider/perry, the company further diversified its portfolio by launching Savanna Blackheath, a cider flavoured with rum.

Craft cider continues to gain momentum from its small base

Despite remaining relatively small, craft ciders continued to gain momentum during the review period. Products found were usually positioned as premium and differentiated through packaging and tropical fruits flavouring.

Files are delivered directly into your account within a few minutes of purchase.