Bottoms up

CIDER

The consumption of traditional English cider has risen substantially in the last couple of years due to what has been dubbed ‘the Magners’ effect’, after the success of the eponymous Irish company in introducing cider to new markets. The future looks as rosy as a ripe fruit, and cider makers are preparing for more success by investing in expansion.

Cider apple orchards will account for more than 50 per cent of total UK apple acreage in 2007, according to the National Association of Cider Makers (NACM), with the area of cider apple orchards increasing by more than a quarter since 2000.

The fact that cider is made from apples could enable it to capitalise on the trend towards fresh, home-grown, ‘natural’ products, and industry analysts see the product as positioned perfectly to meet consumer demand for local, premium products with an interesting provenance.

But how long will the Magners’ effect last, and can growers trust the fickle fancies of fashion in the beverage market?

The brand boosted cider’s tired image back in 2005 with its launch of Magners Original Vintage Cider. Heavy media advertising and sponsorship deals established the name and helped the product take a good deal of market share. Magners’ competitors piggy-backed and augmented the successful marketing, as sales of cider rose across the board.

Just before this renaissance, the biggest cider maker in the UK, Bulmers, had been bought by Scottish & Newcastle (S&N) back in the early noughties. S&N injected money into the brand and its products, thus stabilising the company and the market.

S&N’s commitment seems to have paid off handsomely, and Bulmers has plans to plant an extra 1,200 acres of apple trees over the next three years. Fenella Tyler, head of communications for cider at Bulmers, says the company has 9,000a of apple trees, which it either owns or contracts. This produces 90,000-95,000 tonnes of apples, which makes four million hectolitres (one hectolitre amounts to 100 litres).

The new acreage is all taken up by established Bulmers’ growers - some of whose families may have been growing for the company since the 1920s - who had first dibs on the opportunity.

“Cider is doing well in the drinks industry at the moment,” says Tyler. “It’s the only part of the alcoholic drinks market that is growing.

“When we saw a number of new cider drinks coming on to the market a couple of years ago, we saw cider repositioned in people’s minds. It was served not in a pint mug but in a glass ‘over ice’. It moved into the territory of the premium packaged lager market. Lots of new consumers started drinking cider either for the first time, or more frequently than they did before.

“We have created a completely new marketplace. It is solid and robust. We recognise it can’t go on growing forever, but that level of resurgence has enabled us to carry on supporting rural agriculture.”

Bulmers tonnages make it by far the biggest cider maker in the UK. The second-biggest manufacturer is Gaymer, of Shepton Mallet, Somerset, producer of Blackthorn, Orchard Reserve, K, Olde English and others, with around 30,000t from 2,500-3,000a.

Other manufacturers include Somerset-based Thatchers, which produces Wurzel Me and Thatcher’s Gold, and can press up to 25,000t each year, using only English apples; the smaller Westons, of Herefordshire, which makes Stowford Press and Old Rosie, as well as perry; Surrey-based Merrydown, which produces Merrydown Vintage Cider and Merrydown Gold; and Sheppy, in Somerset, which has only 370a and produces a raft of craft ciders.

Simon Russell, from the NACM, says UK cider uses around 150,000t of pressed apples annually. He says cider is the fastest-growing drinks category in the UK, and a high level of investment is needed to get into it.

“Prior to the upturn in cider’s fortunes around four years ago, some might have said the industry was heading into surplus,” says Russell. “Now some might say there is a shortage.

“If you are a cider make of any size, you want continuity of supply. You want good-quality fruit and you want to know about things such as the pesticide regimes used and the history of the crop,” he adds.

The overwhelming majority of cider apple growers are protected through long-term contracts for supply. There is a price mechanism for use during times of glut or shortage. This year seems to have been a good year, but not a record year. The heavy rains in the summer raised only slight concern.

Bob Chaplin, Gaymer’s fruit and orcharding manager, places the resurgence of interest in cider products at the foot of Magners. “There was something like a 20 per cent increase over the last year,” he says. “But this year has not been helped by the cold weather. Last year we had warm weather and the World Cup.

“Growing for the cider market is a long-term job,” he adds. “It probably would not be worthwhile if you were starting from scratch. Well-established growers with knowledge and land are better placed. As far as how well the growers are doing, we hear conflicting reports. But there is a lot of capital expenditure and a lot of work in the first place. Trees planted in 1997 are coming into their own now, but those growers who have been going for 20 years are faring very well.”

One of the newer growers is Bob Wadey, with 160a in Somerset, near Shepton Mallet. He is Gaymer’s biggest grower by acreage (but not tonnage), and is eight years into a 30-year contract with the manufacturer. “All I can say is, so far so good,” he says. “The market at the moment is okay. Prices were negotiated last year on the back of strong cider sales driven by Magners. While growth may have slowed a little, there is a good volume of cider being sold.

“The thing about cider is you cannot turn the supply on and off. Trees must be grown and nurtured, which takes a lot of time and investment. But I’m optimistic. This is not a bad time to be in apples. Demand is one of those things that goes up and down; the market is cyclical. Cider has quite a big following, and the great thing about the Magners campaign is it appeals to all ages. All the research shows increased consumption.”

Wadey points out another aspect to the rise of the cider market - what he calls the ‘craft’ ciders. “Gaymer has sold a lot of its Orchard Reserve range. Westons, Sheppy and Thatchers have also sold lots of craft cider,” he says. “There are two distinct success stories for cider: the volume sales and the craft sales.”

But Wadey realises that, to a certain extent, the future of the industry is in the lap of the gods. “Growers have little influence on demand,” he says. “We are at the mercy of the consumer and the manufacturers’ marketing departments.”

BLACKCURRANTS

Blackcurrants have long been a staple of the juice drink industry and, with home-grown production on the up and more emphasis on health than ever, UK growers are looking to expand this side of the market as well as increase demand for fresh product.

Ribena, produced by GSK, takes 95 per cent of British blackcurrants and has built up a £150m business with its branded juice drinks. The remaining five per cent of the UK crop is used in other forms, including juices, smoothies, cordials and alcoholic drinks, and is sold fresh, when in season, or frozen.

Growers are looking to increase awareness and increase demand from consumers. The Blackcurrant Foundation has built up a strong relationship with Ribena maker GSK, says chair and Herefordshire-based grower Jo Hilditch, but the organisation has also identified potential areas for future growth. “As with any industry, building relationships with customers is key, so the Blackcurrant Foundation has a well-established relationship with GSK, but like most growers, does not get involved beyond the sale of blackcurrants as a raw commodity,” she says. “The demand for healthy drink options is constantly growing amongst consumers, combined with the smoothie and cordial market, which is also rapidly expanding. This is something that blackcurrant growers have been taking an interest in.”

The growth of the health-focused market will provide opportunities for the UK blackberry category, Hilditch says. “Consumers are continuing to create greater demand for food and drink and products with added health benefits,” she explains. “British blackcurrants are renowned and bred for their deep purple colour, which indicates a high level of anthocyanins - important disease-fighting antioxidants.

“As the market turns increasingly towards health and also environmental issues, this will ultimately raise a shadow over the quality of cheaper produce being imported from abroad. We are therefore keen to maximise this opportunity by raising awareness of the high standard of health benefits, environmental credentials, unique quality and flavour of British blackcurrants amongst drinks manufacturers. Should the requirement for British blackcurrants increase, we can extend our grower base and production area in order to supply further areas of the market and cater for the rise in demand.”

Hilditch says there has been a decisive move towards supplying the drinks industry by UK growers. “Having seen the interest and increased sales in blueberries, we are keen to emulate this success and raise awareness of our own home-grown superfruit by incorporating blackcurrants into more drinks options,” she says. “Earlier this year, blackcurrants were heralded the number-one superfruit by the Scottish Crop Research Institute after some in-depth research, due to the range of health benefits associated with the fruit. We are therefore keen to create a variety of drinks that utilise these benefits, in order to provide consumers with a high level of vitamin C and an increased level of antioxidants.

“Our challenge is to continue to infiltrate other drinks markets and take share from UK manufacturers who are currently using imported blackcurrants, the quality of which is substandard in comparison to British blackcurrants, which are bred primarily for their flavour,” she adds.

But a move into other processing markets could also be on the cards for UK growers, Hilditch says. “Presently, the Blackcurrant Foundation is only focused on providing for the fresh market; however, there is the potential to supply other categories such as yoghurts and smoothies, which currently import berries from abroad.

“Ultimately, the plan is to control more of the market share by supplying more processors with berries from the UK. As the trend moves towards local producers, taking health and environmental issues into consideration, our long-term goal is to grow our industry to supply more manufacturers, and for the UK to become more self-sufficient, rather than relying on the vagaries and poor quality of the open market.”

INNOCENT

Innocent Drinks has made strides in the growing smoothie sector and caught on to a gap in the market, with its growing range of premium products and environment-friendly ethos. The smoothie giant, which hit the market only eight years ago, produces one million smoothies a week, sourcing fruit from both the UK and the rest of the world to meet the volumes needed.

This is an area that should not be overlooked by UK growers, and is outperforming the rest of the drinks sector. The smoothie market is worth £139m to date this year, and has nearly tripled in the last three years. The chilled juice market, in contrast, has grown only 10 per cent in the same period.

Innocent is working with UK growers to introduce more seasonal recipes to the market, says head of product development, Lucy Ede. “The sheer volume of fruit we require to keep up with demand is huge,” she says. “Where there is a constant supply of local fruit like blackcurrants, we use them and we pay a 10 per cent premium to source locally. We are, however, working with UK farmers to establish an ongoing supply of some new varieties of fruit. We launched a damson, blackberry and elderflower seasonal smoothie in October, and all the lead ingredients from this recipe are UK sourced. We worked really hard to secure as many damsons as we possibly could.

“The proportion of fruit we use from the UK varies across the year as the seasons change, and of course when we had our UK fruit smoothie on the shelves, it was higher,” she adds.

So what does Innocent look for in its fruit? And what are the requirements to supply the smoothie market? “We are always looking to come up with recipes that taste totally delicious,” says Ede. “They also need to have a great texture and a colour that is appealing. All our drinks are 100 per cent natural, so are always going to be really healthy. But for us, taste is paramount ­- we are always looking for the best varieties of fruit.

“For example, in our strawberry drinks, we use a variety called the Senga Sengana - it’s a very sweet, red strawberry with an intense strawberry flavour and squishy texture that makes it perfect for smoothies. When we were developing our Superfoods range, we looked for fruit that was particularly nutrient dense and naturally packed with vitamins and antioxidants.”

Ede says the fact that UK growers are interested in expanding their customer base will stand them in good stead, and this is what has attracted them to supplying the smoothie market. “From our experience, UK growers are keen to look at new markets,” she says. “They see the growth and success of smoothies as a way of getting people switched on to fruit, and that is exciting for them.

“There is a movement towards wanting to supply Innocent with fruit because growers know we look for strong quality, and can secure large volumes of their crop,” she adds.

Ede is keen to see more UK growers get on board and supply the smoothie market, and for more UK-fruit-only smoothies to be developed. “Our blackberry supplier is a great example of a grower who had not supplied a smoothie business before,” she says. “He rang us to say how delighted he was to be working with such a high-profile UK brand, and creating a whole new revenue stream for his crop. Our working relationship was very open and positive, and we hope to work with him again next year.

“The best bit of our phone call was when he told us about his kids taking the UK fruit smoothie to school and proudly saying that their dad’s fruit was in there. That is a great story - for him, and for us. We have had absolutely tonnes of positive feedback from consumers to say how much they enjoyed our damson, blackberry and elderflower smoothie. So the more we can secure big enough volumes, and develop strong recipes like this, the more we can use UK fruit.”

PEARTISER

Peartiser scooped the award for Best New Juice Product of the Year at World Juice 2007 in Barcelona last week.

The variant on Appletiser was up against contenders such as Innocent Drinks, Aroma Bursa Fruit Juices, in Turkey, and India-based Seabuckthorn Indage Ltd.

All entries were rated for innovation, quality, significance and overall taste.

The judging panel, made up representatives from Foodnews and Canadean - The Global Research Beverage Company, was impressed by Peartiser’s position as an adult soft drink, tapping into several different consumer trends, including indulgence and the desire for healthy alternatives.

“We are thrilled to receive such a prestigious accolade for Peartiser so soon after its UK launch,” says Andy Thompson, Appletiser brand manager. “This has been a ground-breaking year for the Appletiser brand and this latest recognition undoubtedly confirms the premium quality of the Peartiser proposition. Appletiser and Peartiser continue to be firm favourites for adults wanting a soft drink that is both indulgent and healthier than traditional non-alcoholic options.We are pleased that the judges recognised Peartiser’s strengths in these key areas.”

Peartiser has been well received by retailers and on-trade outlets alike. Listings have been achieved faster than predicted, and Peartiser has already reached its 2007 roll-out target, six weeks before the end of the year.

Key contracts include Superdrug, Tesco, Boots, Sainsbury’s, Compass, Harrods, The Bull Dog Pub Company and Novus, the company behind the Tiger Tiger chain.