The Poor Summers of 2010-11 and 2011-12 Have Had a Significant Short Term Impact on the Australian Beer and Cider Markets

Tuesday 15 January 2013, Amsterdam

Like many cider markets, the Australian industry was relatively quiet until recent years. The country’s leading brewer, Foster’s Australia, had gained a monopoly market position with its 2003 acquisition of the Australasian operations of UK cider maker HP Bulmer and the local rights to its mainstream Strongbow and premium Bulmer’s Original brands.

However, the market has seen a substantial outlook shift in recent years. SABMiller-owned Foster’s remains the largest player and its cider brands have been performing well compared to its beer brands, but there has been substantial competitive pressure. This has come not just from Foster’s traditional beer market rival, Lion, but also from importers shipping major brands from overseas (especially neighbouring New Zealand).

The outlook for cider in Australia remains strong, with growth in 2012 expected to continue at high double-digit rates. Despite several years of good performance, penetration is still far below the levels seen in the UK and Ireland, which have fairly similar beer consumption rates and similar cultural traits to Australia.

The poor summers of 2010-11 and 2011-12 have had a significant short term impact on the Australian beer and cider markets. In any country, a cold and rainy summer holiday season significantly reduces consumers’ desire to drink long drinks. Hence, it is likely that an improved summer 2012-13 will lead to even greater growth for the market.