Despite showing signs of long-term decline, Australia’s cider producing sector has received a notable uptick in investment recently, with notable examples from June including Capital Brewing Co’s acquisition ofBatlow Cider and Good Drinks Australia taking over the exclusive distribution of Rekorderlig Cider from Coca Cola Europacific Partners.
Now the third most important force in Australia’s cider sector, Good Drinks Australia also acquired the exclusive domestic distribution of Magners Cider from CCEP in 2022. Last week, Magners was recognised at the 2024 Australian Drinks Awards as the Cider currently most Gaining in Popularity.
“We’ve just put some strategic importance around Magners and our international portfolio,” said Mick McKeown, Head of Sales and Marketing at Good Drinks Australia.
“Magners is such a beautiful brand… it’s great to see it being reignited everywhere, and the Drinks Association award is a real nod to the fact that it’s noted as emerging/up and coming.”
Determined by Thrive Insights consumer data, the title of Australia’s Fan Favourite Cider for 2024 was won by Somersby, a Carlsberg Group brand made and sold in Australia by CUB, for the fifth consecutive year.
According to Chris Papadimitriou, Director of Thrive Insights, “Somersby just dominates this category, it is pretty much Somersby and then daylight.”
CUB’s Head of RTDs and Cider Sarah Wilcox added, “it’s great to see Somersby continue its success as the Australian Drinks Association Cider Fan Favourite award in 2024… [It] has remained a firm favourite of Aussie cider lovers thanks to its crisp and refreshing taste.”
Despite regaining some of its lost value post-pandemic, Australia’s cider market is expected to continue its long-term decline from its current $1.8 billion towards a value below $1.4 billion by 2027.
“This is a category that’s been in decline for a few years,” said Papadimitriou.
“Back in the day cider was strong – if you weren’t having a beer and you wanted something sweet and refreshing, you’d go a cider or Vodka Cruiser or something similar – but cider’s dropped off due to the emergence of other RTDs and because of the sugar associated with it. They’ve come up with low sugar offerings and new flavours, but the category’s just lost a lot of steam.”
Drinks Trade asked McKeown and Wilcox about how they are going about recruiting more Australian consumers into the category.
McKeown said, “Magners is an amazing brand on premise. Our field team have been able to go in there and sort of reignite a bit of passion around Cider. [Also], what we’ve got with Magners are some great SKUs. You’ve got the pint bottle, we’ve put Magners into a can (we’re just seeing some fantastic growth behind the can innovation); and so [we are] making it available for more occasions.”
Wilcox added that Somersby is continuing to develop via “ongoing innovation such as Somersby Super Crisp, [which has] 25% less sugar than regular cider.”
Given the decline of cider consumption in Australia is largely driven by the strong performance of RTD, it makes sense that cider is now borrowing some of its associated sales cues. Papadimitriou said, “there’s so many other things to choose from for young people that want flavour and refreshment. They can go to seltzers, which are healthier in their opinion, or can select form a large range of exciting RTD spirits.”
Interestingly, McKeown has found Magners to be selling fairly evenly across a wide range of demographics.
“Iit is kind of ubiquitous. It’s selling to adults 30 and above, but we’re seeing the younger generation come through purchasing the cans,” he said.
“A real secret to our success is just getting the right vessel for the right occasion.”
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