Pricewatch: 4th January, 2019: Cider
As the new year begins, find out how your store compares on the pricing of cider
Cider is an important category to invest in all year round, with the off-trade cider market now worth £1.12bn.
This year, sales of Strongbow Dark Fruit peaked, with mixed berry varieties claiming the top spots. In fact, fruit cider has grown by 338% in the past 12 years, representing 27% of the overall category across the on- and off-trade last year.
Plus, with off-trade value sales of craft ciders up 22%, premiumisation is a key trend, as shoppers become more adventurous and open their pockets to spend a little more.
Independents seem to be taking advantage of this already, as they charge slightly more than the multiples for cider, but still below RRP.
To capitalise, retailers should focus on local, premium ciders as this is one area where stores can compete with the multiples and win. This will help to drive footfall in-store, especially as people will be looking for the best deals this month.
|Average UK retail price||Booker RRP||CORNER SHOP IN RESIDENTIAL AREA OF MEDWAY COASTAL TOWN||HIGH STREET NEWSAGENT AND OFF LICENCE IN SCOTTISH BORDER TOWN||SMALL HIGH STREET POST OFFICE AND SHOP SHOP IN SOUTH WALES TOWN||SOUTH MANCHESTER SUBURB LOCAL OFF LICENCE AND SHOP||LOCAL SHOP AND POST OFFICE IN CENTRE OF CORNISH VILLAGE||HIGH STREET CSTORE IN WEST LONDON SUBURBL|
|WESTONS STRONG OAK CONDITIONED VINTAGE RESERVE 500ml||£2.21||£2.19||£2.49||£2.19||–||–||£2.19||£2.29|
|KOPPARBERG STRAWBERRY CIDER 500ml||£2.53||£2.59||£2.69||£2.59||£2.49||£2.99||£2.59||£2.79|
|KOPPARBERG MIXED FRUIT CIDER 500ml||£2.52||£2.59||£2.69||£2.59||£2.49||£2.99||£2.59||£2.79|
|BULMERS RED BERRIES & LIME 500ml||£2.29||£2.39||£2.49||£2.39||£1.89||£2.39||£2.39||£2.39|
|KOPPARBERG BLUEBERRY & LIME 500ml||£2.49||£2.59||£2.79||£2.59||£2.49||£2.99||£2.59||–|
|REKORDERLIG STRAWBERRY & LIME 500ml||£2.54||£2.69||£2.69||£2.69||£2.29||£2.69||–||£2.69|
|STRONGBOW DARK FRUITS 440ml||£1.78||–||£1.49||–||–||£1.49||–||£5.65|
|KOPPARBERG RASPBERRY CIDER 500ml||£2.53||£2.59||£2.69||–||–||–||–||£2.79|
|BROTHERS TOFFEE APPLE CIDER 500ml||£2.36||£2.49||–||£2.49||£1.99||–||–||–|
|OLD MOUT SUMMER BERRIES 500ML NRB||£2.44||£2.49||£2.69||£2.49||–||£2.49||£2.49||£2.69|
|MERRYDOWN VINTAGE MEDIUM CIDER 75cl||£2.85||£2.99||–||–||–||–||–||£2.99|
|WESTONS OLD ROSIE CLOUDY SCRUMPY 500ml||£2.20||£2.19||–||–||–||–||–||–|
Location: Tonbridge, Kent
Size: 1,800sq ft
Type: village Top Tip Don’t be frightened of putting cider on promotion and pricing it lower than the RRP We either stick to the RRP when it comes to cider or go below – but never higher. This also applies to soft drinks and confectionery. We do this because we have to try to remain as competitive as possible with the neighbouring shops, including the multiples. We know we can’t compete with the multiples in some categories, so where we can, we will try our best to take them on. We stock a lot of artisan and local brands such as Biddenden Cider, which is local to Kent and stocked by many farm and village shops, and I find this sells better than the big brands.
Cranhill Convenience Store
Size: 3,000sq ft
Type: estate Top Tip Don’t be afraid to try new lines because the margin might be higher In the cider category, we stick to RRP, because it helps us compete with other independent retailers and multiples. When it comes to cider, we aim for a 25% margin and mainly shop at Booker. However, we also buy stock from United Wholesale and Costco. Most wholesalers offer really good deals, but as Booker delivers to us, we like to use them. We have a large cider range in the shop and dedicate four shelves to it. Strongbow Original in bottles is a bestseller, but in cans, Strongbow Dark Fruits sells the best.
Londis Ferme Park Road
Size: 2,400sq ft
Type: residential Top Tip Invest in more multi-buy deals and don’t be afraid of trying new brands We try to offer cider as part of deals at a reasonable price, such as multi-buy ‘three for £5’ offers. We try to aim for a 25% margin overall in the category. Cider is most popular in the summer, but it still pays to stock it all year around. At the moment, Kopparberg is the bestselling line, and its zero-alcohol variety is selling fast. Londis normally offers good deals on this, so we stick to buying from it. At this time of year, you find that multipacks in general are what people are mainly looking for as they prepare for Christmas and New Year parties.
Londis Broadoak and Post Office
Location: Greater Manchester
Size: 1,000sq ft
Type: residential Top Tip Don’t be afraid to offer shoppers new flavours and brands In the cider category, we generally price slightly above RRP, but we always have some offer ongoing and like to rotate this. If I see there is a good offer from Londis, I like to take advantage of that, or if I see something at the cash and carry, I’ll go pick that up as well and make my own offers. The bestselling ciders are the big brands such as Kopparberg. Strongbow Dark Fruits does well in the summer, but sales of Strongbow Original are consistent throughout the year, so I always make sure to keep it stocked.
Register to comment and get exclusive content and subscribe to the online and print versions of Retail News.Become a member