Cider/Perry in South Africa

PROSPECTS

Health and wellness trends cause shift in consumer preferences

The healthy living trend is creating a new landscape for manufacturers. Smaller breweries catering to demand for gluten-free products or products with no artificial sweeteners are presenting notable competition.

Product innovation continues to boost cider/perry

Flavour innovations provided a boost for cider/perry at the end of the review period, in the face of growing competition from flavoured beer. During the review period, consumers looked for variety and authentic drinking experiences.

Increasing competition

Millennial drinkers are causing a significant change in the competitive environment, with legacy and distribution losing their influence in driving the leadership of the category. Although Distell remains the dominant player, there is increased competition because of the changing consumer demand for lighter, preservative-free options, premiumisation and unique drinking experiences.

COMPETITIVE LANDSCAPE

Distell weathers competition through strengthened brand marketing

During the review period, Distell maintained its dominant share through strategically focussing on building brand equity to support its premium brands instead of engaging in an aggressive price-cutting strategy to withstand the impact of the technical recession. Central to its strategy, Distell achieved sustained growth by establishing a global platform and focussing on innovation.

Heineken South Africa (Pty) Ltd increases the competition

Heineken South Africa (Pty) Ltd continued to take share from Distell in 2018. The company’s Strongbow brand has gained traction within on-trade outlets, with it becoming widely available at restaurants and pubs.

Growing interest in craft cider/perry

Craft cider/perry is a small but growing niche in South Africa, with it attracting consumers who are curious about the production as well as the impact on their wellbeing. Craft cider/perry is produced by small players which are focused on innovation in flavouring, packaging, health-orientated production and partnerships at distribution level.

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