Why the importance of cider innovation is overstated

Cider represents a serious opportunity for convenience retailers with more than half of all off-trade sales now going through the channel¹. In fact, data from the latest Westons Cider Report reveals that cider is worth £544m in convenience alone, meaning it’s more important than ever for c-stores to get their fixtures right if they wish to capitalise on category growth.

“The fast-paced convenience landscape is ever changing with retailers competing for footfall and bidding to boost basket spend in an increasingly tough economic climate,” says Westons’ off-trade category manager Emily Jenkins.

“Against this backdrop it’s easy to see how retailers can fall into the innovation cycle – constantly seeking new products to excite and intrigue shoppers. While this can certainly deliver on the latter, it isn’t always the winning formula store owners might think when it comes to getting cash in the tills.

“The innovation journey can be precarious for both suppliers and retailers, especially when we consider that almost half of cider sales (46.7%) in convenience come from the top 15 SKUs². That’s why store owners should be encouraged to aim for a well-considered fixture with the lion’s share dedicated to products guaranteed to boost the bottom line.”

Stocking best-sellers

Before looking to add range, retailers should ensure they’re stocking best-selling SKUs as these will drive both volume and value sales, explains Emily.

“Ultimately, there’s a reason these products are best-sellers,” she says. “Great taste, quality and value are just some of the reasons drinkers reach for these ciders time and time again, so it is imperative shoppers know they can rely on their local retailers to have them – and keep them – in stock.”

Tapping into trends

Retailers should also consider what trends are driving category growth, adds Emily. “As the popularity of value amber and white ciders continues to dwindle (respectively down -5.3% and -20.5% YOY⁵), mainstream and premium apple ciders are the products that should be on retailers’ radars.

“Accounting for just under two-thirds (63%) of cider sales⁶, apple remains the cornerstone of the category, its share gradually increasing over the past few years as fruit cider stabilised at around a third of the market.

“What’s more, apple cider shoppers spend almost double the amount compared to flavoured cider shoppers (£77.91 vs £31.54 annually)⁷. This means that while retailers should explore fruit and flavour innovations – particularly during the summer months – space should be prioritised for quality apple ciders.”

Today’s cider drinkers are also willing to pay more for premium products that are made in a traditional way and have a sense of provenance, notes Emily.

“The growth of crafted cider demonstrates this trend perfectly,” she says. “This sub-category is by far the fastest-growing sector in convenience, up 24% YOY⁸, and increasingly stealing share within total cider from 17.2% to 20%⁹. Despite the increasing popularity of crafted cider, the sub-sector only accounts for 17.9% of share in the convenience channel¹⁰, meaning there’s still plenty of headroom for growth.

“Retailers looking to unlock this growth should first and foremost be tapping into these category-driving trends rather than adding new lines.”

Striking the right balance

Despite the advice given so far, innovation does play an important role in category growth, especially when it comes to attracting non-traditional cider drinkers – like women and younger adults – and spreading cider’s geographic footprint, says Emily.

“Adding flavour innovations is a great way for retailers to differentiate their alcohol fixture, driving both excitement and sales, especially ahead of key sales periods such as summer and Christmas,” she adds. “That said, given the space challenges in c-stores compared to supermarkets, store owners should be mindful of what NPD will work for their shoppers, prioritising variants that align with category trends around premium, heritage flavours.”

“Our characterful Henry Westons range, made traditionally from apples grown within 50 miles of our Herefordshire mill, fits the bill perfectly with Henry Westons British Vintage and Henry Westons Cloudy Vintage making a great secondary SKU for retailers looking to add variety to their fixtures.”

Ranging and chilling

In terms of ranging, apple should occupy two-thirds of total fridge space in canned or bottles formats, with flavoured innovations, in single bottles or 4-packs, taking up the majority of the remaining space alongside a few facing for no/low alcohol options, advises Emily.

“As cider in the channel is largely an impulse purchase to be enjoyed the same day it’s important retailers adequately chill cider. With Henry Westons Vintage single bottle alone accounting for 6.9% of convenience sales¹² this is the most important SKU c-stores should prioritise in the chiller if they don’t miss out on crucial sales.”

For more information visit www.westons-cider.co.uk

_{Sources
¹ Westons Cider Report 2023
^{2- 4} IRI 52w/e 22^nd April 2023
^{5 - 7} Westons Cider Report 2023
^{8 - 10} IRI 52 w/e 20^th May 2023
^{11 - 12} IRI 52w/e 22^nd April 2023}