South African cider market dominated by Distell

The South Africa cider market saw double-digit growth in 2012 and this is expected to continue in 2013. Growth will be driven by the Distell brands and also the new entrant, Tells. New packaging formats will also help.

Cider in South Africa is very much a drink for both women and men - although it tends to be marketed mainly towards men. It is a small market in the country compared to the giant that beer is

Cider sales are very much based in the off-trade (64% in 2011) as this channel provides alcoholic beverages at more competitive prices. Cider is not sold through supermarkets, and is therefore largely sold through specialist drinks retailers.

Due to the low mark-up margins on beer, RTDs and cider, on-trade outlets are less likely to promote these categories‟ brands in on-trade venues. Cider advertising usually focuses on above-the-line methods.

Distell continued its dominance of the South African cider market in 2012, accounting for over 98% of the category. The company's Hunter's Dry was the leading brand with a total volume share of 33% in 2012. It was followed by Savanna which held 28% in 2012.

Both brands compete for the same "share of throat" and tend to be consumed by the same consumer group, thus a growth in one brand results in a decline for the other.

There is the possibility of new entrants to this growing market, however, newcomers will find it difficult to enter a market dominated so completely by one manufacturer.

It is thought that the cider market will continue to enjoy strong growth over the coming years due to its wide appeal. Manufacturers utilise high advertising spends to support their leading brands, including Distell Group's Savannah and Hunter's Dry brands.

The introduction of larger, sharing pack sizes will make the category more affordable, and better able to compete with beer.

For more information on the South African cider market, see the latest research: South African Cider Market

Follow us on Twitter @CandMResearch