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Somersby establishing an alcohol category adjacent to beer

With declining beer volumes throughout Europe, brewers have looked at diversifying their product portfolios and seek out new revenue streams from alcohol categories adjacent to beer. Carlsberg, one of the world largest brewers, has expanded its product portfolio with the addition of the Somersby cider brand. The brand, which was first launched in Denmark and Norway in 2008, is now available throughout northern Europe and Belgium and has most recently been launched in Croatia and, most significantly, Russia.

Somersby cider is an example of a successful premium product launch outside of beer by a brewer. Indeed, such has been the brand’s success that Carlsberg’s 2009 annual report noted that “Somersby cider continued to grow throughout the year and has effectively established the cider category in Denmark”. Its success has been based on:

The prevailing market conditions – a high-propensity to consume alcohol in target markets, allied to a long term switch away from beer to other alcohol categories in Western and Northern Europe

Product positioning – by meeting the needs of contemporary cider drinkers, most notably in aspects of health and packaging design

Effective consumer targeting – by focusing on the urban trend-setting consumer, the brand is targeting influential early product-adopters and adopting a position which is different from the ‘traditional’ and ‘rustic’ associations which characterize the marketing of cider brands in countries with a strong cider-drinking heritage

Exploiting new market opportunities – through rolling the brand out in several Northern and Western European markets. Its launch in Russia in May 2010 is the most significant move yet for the brand in terms of the potential market opportunity.

Branding – its distinct branding and marketing is in tune with the juvenility of the brand and its younger target demographic group. But as consumers in these markets become more knowledgeable about cider, they may start to look for greater product authenticity.

Find this interesting. For more, check out the MarketLine Somersby business Case Study: Establishing an Alcohol Category Adjacent to Beer. You may also check out our Buy Reports section for thousands of other company, industry & country analysis reports.

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