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New fruit cider promotes competition, local production

NEW PLAYER
Rekorderlig had to increase its new cider's alcohol content to a minimum alcohol level of 4.5%, in compliance with the South African Liquor Act of 1960
ENTREPRENEURAL PURSUIT
Rekorderlig expects the introduction of a new cider category in South Africa to open up production opportunity for the local alcoholic beverage industry
Rekorderlig South Africa regional director Ross Young

Rekorderlig South Africa regional director Ross Young discusses the new Rekorderlig cider and the opportunities it holds for local industry.

NEW PLAYER Rekorderlig had to increase its new cider's alcohol content to a minimum alcohol level of 4.5%, in compliance with the South African Liquor Act of 1960

ENTREPRENEURAL PURSUIT Rekorderlig expects the introduction of a new cider category in South Africa to open up production opportunity for the local alcoholic beverage industry

Photo by Duane Daws

Rekorderlig South Africa regional director Ross Young

6th March 2015

By: Mia Breytenbach

Creamer Media Deputy Editor: Features

  

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Having introduced a new cider category to the South African alcoholic beverage market in 2014, Sweden-based cider producer Rekorderlig aims to encourage innovation and stimulate production in the new cider category in the near future, says Rekorderlig South Africa regional director Ross Young, adding that, as consumers’ tastes change they demand new and innovative products – as evidenced by the Craft Beer revolution.

“This product opens up opportunity for the alcoholic beverage industry locally. We hope that, as the industry sees consumers move towards the perry market, they innovate themselves and start the local production of similar products, which will stimulate competition and increase local production,” he tells Engineering News.

The Rekorderlig cider was first created in 1999 in Vimmerby, Sweden, and is still brewed today by fourth-generation Swedish brewer Abro Bryggeri.

In compliance with the South African Liquor Act of 1960, Rekorderlig had to increase the new drink’s alcoholic content by 0.5%, as perries and ciders have to adhere to a minimum alcohol level of 4.5%.

Rekorderlig’s product is classified as a perry, as it contains a pear-based, not an apple-based, juice component. The drink is also available in a 500 ml bottle, owing to Swedish recycling restrictions.

Rekorderlig launched the fruit cider in September 2014 and aims to introduce several new variants this year, including a spiced cider that can be served hot or cold. The company further aims to import between 50 000 and 60 000 cases of the cider for the on-trade and off-trade markets – restaurants and liquor traders – this year.

South Africa is the second-largest cider market in the world in terms of cider consumption and production, after the UK, says Young. He notes that the market has, however, been predominantly driven by traditional apple-based ciders, which are experiencing a slight decline.

“Fruit cider is driving the cider category forward,” he emphasises, pointing out that there has been a slight increase in innovation of new ciders and brewing methods over the past few years in the apple cider market.

Cider Stance
According to research firm Euromonitor’s September 2014 South Africa report for the cider industry, “[market] players within the category made concerted and focused efforts to promote their products among consumers, resulting in an uptake among men and women, particularly in the younger age demographic”.

The report further notes that key industry players, such as South African distiller Distell Group, continued to lead the country’s cider market in 2013, accounting for an 87% share of sales in total volume terms.

However, this share has been decreasing steadily year-on-year, having declined by six percentage points from 2012. “[South Africa’s leading total beverage company] Brandhouse Beverages was the second player in the category, with a markedly smaller share of sales at 2% in 2013 – a decline of half a percentage point from 2012.”

Euromonitor’s South Africa report also notes that year-on-year decreases of the country’s two leading players “reflect the growing competitiveness of the category, as the relatively new, but growing popularity of cider is causing new players to enter the market”. The report adds that these new players are subsequently gaining the shares of established players, instead of building a new customer base.

Further, the report highlights product innovation – in terms of new products, flavours and premium packaging – as some of the key factors expected to drive demand, which will consequently drive cider/perry growth in South Africa over the next five years.

Young believes that the introduction and revolution of craft beer and flavoured beers, which are changing the brewery industry, are complementing the cider and ready-to-drink markets, as the brewery industry now needs to cater for new flavours and evolving tastes.

“Demand from the South African consumer is also supported by an increase in travel and exposure to new brands on social media. This stems from a growing interest in international trends and brands, instead of the offerings consumers are used to,” he suggests.

Young further points out that the local market is producing similar- category ciders, which is beneficial to this production market, especially in terms of competition.

“Entrepreneurs will pursue this new category, which, in turn, will lead to increased employment opportunities and economic benefits,” he concludes.

Edited by Samantha Herbst
Creamer Media Deputy Editor

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