Category and insights

With the warmer weather just weeks away and beer gardens in the UK are beginning to busy up, we spoke to Category Controller at Kopparberg Anne Claypole to get her thoughts on the fruit cider market this summer.How do you encourage more consumers to go out to venues during the cost-of-living crisis?As COVID-19 restrictions continue to ease, young adults have been the first to return to venues and are expected to be a major source of footfall and revenue in the on-trade industry this year. This age group enjoys eating and drinking out more than any other, and they often seek out their favourite brands when visiting venues. Kopparberg is a popular choice among young drinkers1 (aged 18-24), making it a must-stock brand for attracting this younger footfall into venues. This demographic also has more disposable income on average, and they place value in experiences and socialising with friends, meaning going out for food and drinks is high on their agenda.It is important to consider experiential activity in your venue, not only does this ensure that customers get value for money, but you can drive footfall by offering something that they are not easily able to replicate at home. By giving customers a positive experience, it allows venues to facilitate customer connections that can turn into long-term relationships and keeps them in venues for longer.Another way to encourage customers to come to your venue is by offering promotions and discounts. This can include ‘happy hour’ specials, drinks deals or loyalty programs. Drinks sharing packages are also a great way to drive groups of drinkers into outlets. Offering these promotions and discounts outside of busy periods is a great way of driving customers into venue and generating cash on quieter midweek nights.Why is the right range so important to venues?Range is becoming increasingly important as the competition of recreating out of home experiences in home intensifies. Licensees must give customers a reason to cross the street, and providing an exciting and innovative drinks portfolio can help to maximise sales during this crucial trading period for operators. This means stocking the big hitters and innovators within categories who have a loyal following. Kopparberg has more loyal drinkers than any other beer or cider brand2 with 1 in 5 Kopparberg drinkers only drinking Kopparberg3.Whilst popular fruit cider variants such as Strawberry & Lime and Mixed Fruit dominate the packaged cider market, operators should look to profit this summer from seasonal flavour trends. Following on from the emergence of Peach as a rapidly-growing, on-trend flavour in the winder alcohol category this year, Kopparberg have introduced a brand new seasonal exclusive – Summer Punch. This variant builds on Kopparberg’s expertise in premium fruit refreshment and we expect this product to perform well as the weather improves and we head into summer.With the rise of teetotal or ‘sober-curious’ consumer behaviours, licensees need to ensure they are prepared by diversifying their menu offerings to address this trend. Alcohol free is now a huge opportunity for operators and the category is now the fastest growing of cider, increasing by over 500% over the last 5 years4. Kopparberg launched alcohol-free variants in 2007 and this range has since evolved to include Strawberry & Lime, Mixed Fruit, Mixed Fruit Tropical and Pear.When building out your drinks menu, it is important to ensure that operators have high volume lines on draught such as Kopparberg Strawberry & Lime and instead allow packaged to offer breadth of choice to drive additional and incremental spend by attracting those lighter cider drinkers who we know are looking for exciting new flavours such as Mixed Fruit Tropical and Summer Punch.Outlets should also diversify their drinks menu by ensuring they have a diversified portfolio containing both draught and packaged cider to cater for consumer needs for different drinking occasions. During the day, particularly when the weather is good and drinkers flock to beer gardens, offering a fruit cider draught alternative can put additional cash in your tills as consumers are willing to pay more for the product. Kopparberg’s bestselling Strawberry & Lime is now available on draught and can help venues to provide a point of difference and drive sales.Why is summer so important to the on-trade and how can you ensure your venue is summer ready?During the summer months, people tend to spend more time outside, socialising and enjoying the weather. This means that bars and restaurants can expect to see an increase in footfall and customer numbers. Throughout the summer period we often observe increases in the consumption of fruit cider and other summer drinks related to seasonality and significant events where consumers are looking for reviving, flavourful and easy to drink options. When the sun shines fruit cider sales uplift more than any other category so by ensuring you are stocking the most loved fruit cider brand can help make the most of these warm periods and drive sales for outlets.Many pubs, bars and restaurants have outdoor seating areas that can be used during the summer months to extend the number of covers they can do. Not only is this beneficial to outlets but it can also be a big draw for customers who want to enjoy a refreshing drink in the sunshine so ensuring that beer gardens are appealing for customers to sit in will increase dwell time and customer spend.When the sun shines and the weather warms up in the summer customers feel more positive and therefore have more out of home drinking occasions, with an increasing in ad-hoc midweek occasions occurring. This is a huge opportunity for outlets so ensuring they are stocking the big hitting brands can encourage customers to flock to their venue and beer garden. As consumer spending tightens, we can expect to see more staycations in the UK which again outlines an opportunity for outlets to benefit from more UK out of home occasions.How do you drive profitable growth through cider?Drinkers have their favourite alcohol brands, and it has been known that customers will drink less or even leave a venue if these favourites are not stocked. 65% of drinkers would choose Kopparberg ahead of any other fruit cider5 which highlights the importance of ensuring your venue is stocking the best possible range to drive footfall into your venue and keep customers staying for longer once in.By stocking customer favourites, it is important that your drinks menu caters for all customers and by blending in some premium brands you can encourage consumers to upsell to those more premium brands. Licensees can charge a higher price point for premium drinks and get more cash in their tills as these brands are seen as ‘worth paying more for.’ It is also important to consider your draught offerings as well – Draught is an important volume driver for outlets and in fact 54% of customers prefer buying draught cider over packaged6. This supports the need for venues to offer a second draught line for cider to allow them to offer a draught fruit cider – and they back a big hitter like Kopparberg when they do.Not only does draught help drive volume but it can also demand a higher price point in venue by providing consumers with an experience that they cannot replicate at home. Bartenders can also upsell on draught through offering pitcher or cider tower serves which are great for attracting large groups of young drinkers and again creating interactive OOH experiences. To find out more about the POS support available from Kopparberg click here. Young drinkers (18-24) are a key demographic this summer – they have disposable income, go out more often and have a longer dwell time. They also drink in larger groups so licensees should ensure they are stocking their favourite brands such as Kopparberg, the most loved drinks brand for 18–24-year-olds so tailoring your offer to attract more young drinkers is a guaranteed way to drive to drive incremental sales.Sources:1) Base: All UK adults (2,108) weighted base, omnibus survey 22nd to 24th April 2022. * Kopparberg brand split into Cider, Gin, Rum, Vodka, Hard Seltzer and Non-Alcoholic Cider2) Kantar world panel, 52 we 15th May 20223) Kantar, Total Market, Beer & Cider, 52 we 15th May 20224) CGA Strategy (16/07/22)5) Germinate Research Agency, Kopparberg On Trade research, 1,029 Nat Rep base, Omnibus survey, July 20216) CGA BrandTrack February 2022, Sample Size: 438-5002

Q. How important is it now for pubs and bars to have a low and no alcohol alternative on offer?As consumers become more health conscious, they are actively seeking out venues that offer a broad range of low and no alcohol alternatives that provide customers with a real choice. With spend becoming tighter, venues that can service this need will drive real loyalty; something especially true amongst 18-34 year old’s who are becoming increasingly important to the On-Trade. This audience are less likely to be impacted by the cost-of-living crisis and therefore likely to visit the On-Trade more than other age groups. With one in three 18–34-year old’s drinking Kopparberg1, our brand is key in appealing to this important consumer.Whilst January is the perfect time to start communicating this offer with it high on consumer agendas, the demand for healthier options is strong all year round so developing an all-year offer is vital in meeting consumer demands and driving footfall. Locking in consumers early will drive loyalty and keep them coming back throughout the year.A strong alcohol-free range should form the basis of this offering, with the category continuing to go from strength to strength and becoming a mainstay within drinkers’ repertoires all year round. As when drinking a full-strength product, consumers are looking for their favourite brands, meaning breadth of choice and stocking the big hitters is key here. The right alcohol-free offering will drive real cash in the till, providing a higher value trade up from soft drinks. Q. Do you think there is more awareness and interest in the calories and ingredients in drinks than there was in the past?Whilst the calorie content may still be a consideration, it becomes less important part of the decision as when played off against the drink containing no alcohol, it is deemed a fair compromise. Even when consumed as part of an alcohol occasion (as 58% of alcohol-free drinks are3), consumers are still seeing the real benefit in this choice as being the reduction in alcohol intake. It is key to remember that most alcohol-free consumers are also purchasing full strength drinks so a poor alcohol-free range will also impact alcohol sales. When looking to moderate alcohol intake, the most important factor for consumers is the taste of the drink, with them wanting a taste and occasion experience as close to drinking a full-strength drink as possible. Ultimately, products that can deliver this will drive consumers to trade up from soft drinks and as the best tasting cider brand in the UK1, Kopparberg’s range of alcohol-free products does just that. Our position as the bestselling alcohol-free cider brand in the UK1 has been built on having a range that delivers as close a drinking experience to the full-strength range as possible. This has led to the brand having more drinkers than any other alcohol free brand2, meaning stocking the brand will satisfy the large proportion of your customers seeking fruit refreshment, even when cutting back. Q. What advice can you provide operators to help them promote their healthier offers to their customer base?Driving visibility of your alcohol-free range is essential, as although the category continues to grow rapidly, awareness is still relatively low with consumers and as they can drive real trade up from soft drinks, letting your customers know about your range is a great way to get more cash in tills. Ensuring they are featured on menu is a must but also look to include within promotions as well to drive trial. Drinkers choose an alcohol-free drink the same way the would a full strength drink so structure this section of your menu the same as the rest of it. POS in venues is another great way to drive visibility, especially as these valuable consumers are actively seeking out these drinks- make it easier for them to find and order alcohol free drinks and they will reward you with year-round loyalty. Speak to your suppliers to get hold of items to create more disruption in venue. You can find and order POS support for your Kopparberg alcohol-free range by visiting our POS hub. Gusto Research, Internal Brand Tracking, All UK adults (2,108) weighted base, omnibus survey 22nd to 24th April 2022 CGA on premise measurement data to 18/06/22 IWSR, “What’s driving growth in the no- and low- alcohol space?”  

Optimise your range to suit your customer needs and put more cash in your till.  Ranging can be a tricky beast to tackle at times. Ensuring your customer needs are met with a broad choice of products, flavours and value options, whilst safeguarding margin to drive profitability of your business is vitally important. Here are some top tips to help:   Share of space:  Split your fridge by Beers, Cider, Softs, RTD and Wine – not forgetting the growing area of Alcohol-Free Look to offer core, premium and super premium solutions by category to provide a choice of value to your drinkers and try stocking a range that will encourage drinkers to trade up and drive more cash through the till Optimise fridge space around your bestsellers to limit time spent restocking during a busy shift. Ensuring little duplication between what is available on draught and in the fridge will help to offer choice to the consumer, without impacting stock management Try to understand the % share of cash sales and margin for each so you can track how important specific subcategories is to your business Know your customer:  Think about your regulars or who you would like to attract in future - this will help you focus on which products to stock Selecting the right brands and products to suit your customers is super important, so here’s a few quick questions to help keep you on the right lines: Who does your range need to appeal to? Which brands appeal to this audience? Which new customers would you like to attract? Younger or older drinkers Families Male/Female Top tip – you could also ask your customers what brands they would like to see Seasonality:  Keeping your range fresh and offering new, exciting options to your customers is vital - think about how you can use key seasons to do this Naturally, some products lend themselves to work better in summer or winter and although fruit cider performs well all year round, fruit cider brands like Kopparberg see bigger uplifts during summer compared to any other category, being first on drinkers minds when beer garden weather hit Whilst summer is an important time for fruit cider, it plays a key role during all events and social gatherings; seeing bigger uplifts than lager when the football is on, whilst also peaking at Christmas and over bank holidays- build a strong all year round offering then flex in key seasonal skus to make the most of these opportunities Beyond mixing up brands and subcategories, try and swap out flavours too – for example, introduce tropical flavours in the summer and mulled or spiced flavours during the colder months Moderation:  With the rising trend for more mindful drinking, we are seeing strong growth in the No/Low category Young drinkers in particular are driving this trend, with 26% of Gen Z consumers now stating they are teetotal 1 Alcohol-Free Cider has more drinkers than Alcohol Free Beer and therefore should be considered as a key part of your Low/No offering Sources: 1) BBC.com,Why Gen Zers Are Growing up Sober Curious, September 2022