Somersby Case Study: Establishing an Alcohol Category Adjacent to Beer

With the underlying consumer trend driving a switch away from beer to other categories, the need for global brewers to look for opportunities in alcohol categories outside of beer has grown. This case study looks at how the Somersby brand has effectively put cider on the map in Northern Europe and Russia.

• Achieve sales growth by understanding the opportunities that can be realized through successful product portfolio diversification in alcohol * Enhance credibility of sales pitches by better understanding the needs of cider drinkers with supporting consumer, product and market insight data * Stimulate ideation and invigorate brands by learning from best practice examples specifically from the alcohol industry * Enhance your market positioning and concept development efforts and reduce risk for new product launches and increase the chances of success

Exclusive Datamonitor research has shown that amongst cider drinkers, price and preferred brand have less of an influence over alcoholic drink choice than amongst non cider drinkers. Conversely, health, convenience, sustainability and packaging design all have a greater influence on product choice amongst cider drinkers. Selectively tapping into these consumer needs has been a key factor behind the successful launch and the subsequent take-up of the Somersby brand.

• What drives choice of alcoholic beverage amongst both cider and non cider drinkers? * How are the beer and cider categories performing in the UK, Northern Europe and Russia? * How is the nature of new product developments in the global cider market different from that of beer and wine? * What are the opportunities for global brand owners in the Russian alcohol sector?

Table of contents

DATAMONITOR VIEW

CATALYST

SUMMARY

ANALYSIS
Although alcohol consumption is generally high, changing drinking habits are forcing Carlsberg to diversify
Penetration and average weight of consumption is high in Denmark and other Nordic countries
Western and northern European beer markets are in decline
Cider volume sales vary dramatically across Europe
Somersby’s market positioning is in tune with the needs of cider drinkers
Price and preferred brand have the greatest affect on product choice among cider drinkers
General health concerns come to the fore in the marketing of the cider category
The Somersby brand has tapped into the greater influence that packaging design has among cider drinkers
Somersby targets sociable urban consumers willing to try new things
A willingness to experiment is the key driver behind the uptake of the Somersby brand
The on-trade’s importance is lower in Northern Europe and Russia than the UK
Urbanization is becoming a route to differentiation in the alcohol sector
Carlsberg has constantly exploited the new market opportunities
Russia is a huge growth opportunity for the Somersby brand
Russian consumerism is very different to that in Northern and Western Europe
Any strong consumer sentiment for a more authentic cider may undermine brand success
Somersby marketing and advertising is very different to major European cider brands
The consumer desire for greater authenticity may put Somersby under the spotlight
Conclusions and implications

APPENDIX
Secondary sources
Further reading
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Disclaimer

Related research categories

By sector: General alcohol, Beer (in Beer & Cider)