Leading Cider Labels See Growth Slow Sharply As Craft Brands Thrive

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Monday, July 11, 2016

Leading Cider Labels See Growth Slow Sharply As Craft Brands Thrive

While business has been good for craft cider producers lately, growth has slowed elsewhere in the cider category after five years of surging volumes. Cider volumes in the U.S. market rose by just 2.5% to 27 million (2.25-gallon) cases in 2015, according to Impact Databank, compared to a growth rate of 64% in 2014. Category leader Angry Orchard eked out just a 3% gain to 14.95 million cases last year, while in 2014 its volumes had soared by 81% to 14.5 million cases.

Most of the category’s other major brands suddenly began to suffer last year. Anheuser-Busch InBev’s Johnny Appleseed brand saw sales reach 1.5 million cases in its debut year of 2014, but volume slipped 13% to 1.31 million cases last year. The fall-off was even more precipitous for Vermont Hard Cider Co.’s Woodchuck brand, which dropped by 14.5% to 1.93 million cases.

Yet while the major brands are slumping, most craft cider makers say their sales remain strong, held back only by supply considerations. Most are producing as much cider as they can, with much of their volume sold at farmers markets, specialty shops and craft-friendly pubs. Market Watch has the full story.

To purchase Impact Databank's new comprehensive report on the cider category, visit impactdatabank.com.

News Briefs:

•Diageo-controlled Indian spirits group United Spirits Ltd. has alleged that its former chairman, Vijay Mallya, was involved with “improper transactions” that diverted funds from the company totaling $183 million. According to the Wall Street Journal, the suspected transactions occurred between October 2010 and July 2014 and involved “the diversion of funds to overseas and Indian entities that appear to be affiliated or associated with” Mallya. Diageo owns about 55% of USL, which leads India’s spirits market. After a protracted battle to gain control of the company, Diageo agreed to pay Mallya $75 million to resign as USL’s chairman earlier this year. Mallya, now in the U.K., resigned his seat in India’s parliament in May amid scrutiny by Indian regulators, who are investigating debts of over $1 billion owed by his now-defunct Kingfisher Airlines.

•Paul Hobbs Wines has upped its presence in the Sonoma Coast, acquiring the 42-acre Goldrock Ridge Vineyard for an undisclosed sum. Having sourced grapes from Goldrock for the past five years, Hobbs says the vineyard has the potential to become “one of the most revered and pedigreed sites for Pinot Noir in the United States.” Goldrock is planted to 38 acres of Pinot Noir and four acres of Chardonnay. Paul Hobbs’ other estates include Edward James, Ellen Lane, Katherine Lindsay and Ross Station in the Russian River Valley and Nathan Coombs in Napa Valley’s Coombsville sub-appellation.

•Bacardi Ltd. has joined forces with music impresario Swizz Beatz, naming the Grammy award-winning producer and performer the company’s global chief creative for culture, with oversight over the entire Bacardi brand portfolio. Bacardi and Beatz have collaborated before, with the artist playing a central role in Bacardi’s events at Art Basel 2015. In his new role, Beatz will continue to represent Bacardi at numerous events around the globe, with further details to be announced in the near future. “For Bacardi, having Swizz as a partner represents an opportunity to sell more than just bottles and cocktails,” says Bacardi Ltd. CEO Mike Dolan. “It represents a convergence of our brands in lifestyle and cultural experiences.”

•Campari America has rebranded its Appleton Special Jamaica and Appleton White rums, relaunching them under the group’s J. Wray Jamaica Rums brand as J. Wray Jamaica Rum Gold and Silver, respectively. While both 40%-abv rums will retain their original recipes and pricing ($17 a 750-ml.), Gold and Silver have been repackaged, with the new iterations currently rolling out across select U.S. markets. Campari America category marketing director, rum Christine Moll recently told SND that the change helps ensure that “Appleton Estate is viewed as a premium rum offering within the Campari America portfolio,” with J. Wray being positioned as the “standard rum set.” The Appleton brand, whose core lineup ranges from $22-$38, was up 6.8% to 220,000 cases in the U.S. last year, according to Impact Databank.

Craft Brewing and Distilling News:

•Walland, Tennessee-based Blackberry Farm Brewery has introduced a new Native Yeast series with two inaugural offerings, Blackberry Rye and Tennessee Cream Ale. Blackberry Rye is a 6.3% abv beer brewed with heritage barley and rye malts. It undergoes a secondary fermentation with blackberries followed by additional aging in Tennessee whiskey barrels. Tennessee Cream Ale is also 6.3% abv and is brewed with flaked corn and heirloom grits. Both new brews are fermented with a wild strain of native yeast harvested from honeysuckle blossoms found on Blackberry Farm’s 9,200 acre estate.

•Portland, Maine’s Peak Organic Brewing Company is releasing two new versions of its flagship Peak IPA: Evergreen IPA and Crush IPA. Evergreen IPA is blended with organic juniper berries and organic spruce, while Crush IPA features added organic blood orange peel. Evergreen and Crush (both 7.1% abv) are available in limited quantities on draft and in mixed six-packs that feature both IPA varieties.

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