Hard Cider’s 'Explosive Growth'
NEW YORK -- A new report from analysts at RBC Capital Markets analyzes the recent remarkable growth of hard cider. A glimpse at the report:
While cider is still a relatively small category (about 1% of the beer industry), it has shown explosive growth, up 92% in 2012, 77% in 2013 and 87% year to date in 2014. MillerCoors' marketing vice president, David Kroll, recently estimated that cider could reach 4% to 5% of total beer.
The Gluten Connection
Is the cider boom tied to the gluten-free movement? This category ascent has, in our opinion, coincided with larger national attention paid to gluten in diets (cider is gluten free). Google searches for "gluten free" follows a nearly identical, slightly leading curve for cider's growth. (See chart below.)
Boston Beer's Angry Orchard Cider, introduced in 2012, has achieved an impressive +50% share of the Cider market. We believe a key component of its success was very clear labeling indicating that, unlike beer, it is "naturally gluten free". On a run-rate basis, Angry Orchard is less than 20% of Boston Beer's sales. This trend and growth rate have not been lost on major international competitors, which have introduced/re-branded the following products:
- MillerCoors–Smith & Forge and Crispin
- ABI–Stella Cidre
We believe the category will continue its strong growth, which should be enough for Angry Orchard continue growing even if its cedes share.
Premixed Cocktail Sales Dip 6.7%
IRI Convenience AllScan data for 52 weeks ending Jan. 26, 2014
|Brand||Dollar Sales||PCYA||Unit Sales||PCYA|
|Bartles & Jaymes||$4,450,539||-24.91%||1,329,171||-21.44%|
|Captain Morgan Parrot Bay Strawberry Daiquiri||$697,807||-56.93%||338,954||-56.71%|
|Captain Morgan Parrot Bay Pina Colada||$642,368||-50.22%||312,155||-50.30%|
|Captain Morgan Parrot Bay Mango Daiquiri||$560,152||-54.42%||273,587||-54.07%|
|Jose Cuervo Golden Margarita||$533,056||23.80%||27,375||22.04%|
Source: IRI, a Chicago-based market research firm (@iriworldwide)
CHICAGO -- Premixed cocktail sales dipped 6.7% in convenience stores during the 52 weeks ending Jan. 26, 2014, according to IRI data.
Popular brands such as Bartles & Jaymes, JoSe Cuervo, Daily's and even relative newcomer SkinnyGirl all saw dollar and unit sales decline by double digits over the time period. Perhaps some of those sales have moved over to Anheuser-Busch's fast-growing Bud Light Lime-a-Rita and its line extensions.
The largest premixed-cocktail brand--budget brand Clubtails--however, grew a staggering 170% following a repackaging and wider distribution.