Research by the independent market analyst has revealed that, as the cider market has continued to show strong growth in many markets in northern Europe with particular appeal amongst young consumers, this is an ideal drink to launch into new markets where there’s a large and growing young population. With a nonexistent cider market and a growing young population, Russia could be the next key growth market
David Bird, consumer analyst at Datamonitor, said: “With declining beer volumes in Russia, due in part to a large increase in taxation, Carlsberg has launched its Somersby cider. This is a bold move when cider consumption is currently minimal, and Vodka still reigns as the tipple of choice.
“The brewer has realised the potential of the Russian market, as the brand will appeal to the growing young urban population in Russia. Datamonitor predicts the number of 25-35s will have grown by 10% between 2006 and 2014.
“If Somersby cider can capture this age group, they stand the chance of significant headway in this market and this could provide Carlsberg with a boost to profits. They will also benefit from being one of the first to launch.”
However, Datamonitor believes that new players in the cider market, such as Somersby, face challenges. Somersby lacks the authenticity that cider brands like Bulmers and Magners have.
As the brand becomes more established, and consumers become more educated about cider, they may start to look for a brand that has a more authentic product story supporting it.
Ultimately, Somersby may do all the hard work in establishing cider as a significant alcohol category in markets where there has historically been very little cider consumption, but there’s a risk of the more established brands spotting the potential of the market and swooping in and stealing market share.
Therefore, Somersby will need to convince consumers now of its quality and build loyalty.
Source: Datamonitor
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