By Becky Garrison, Staff Writer
During American Cider Association’s annual CiderCon convention held January 16-19, 2024, in Portland, Oregon, Shannon Hiller-Webb, Principal of Prosparus, a Portland-based strategic CPG food and beverage-focused consulting company, spoke about the role of label design in increasing cider sales. While 72% of American consumers state they base their purchase decision on packaging and design, Hiller-Web notes that cider is one of the only beverages to lack iconic packaging when compared to beer cans and wine bottles. In her talk, she focused on how cider makers can utilize both their creativity and data-driven insights to create the type of label that can communicate to these customers a cider brand’s unique story and align a cidery’s values in sharing claims and certifications.
Defining Packaging for Cider
While canned cider remains in its infancy, Hiller-Webb points to how technology is changing as the evolution of aluminum ciders enables ciders to have a long shelf life. This move towards cans matches the consumer demand for on-the-go convenience and more sustainable options.
Even though glass conveys a premium perception to the consumer and optimal preservation for the cider, Hiller-Webb notes how grocery stores don’t like gaps between bottle and can heights. “As groceries try to reclaim this gap and might start to limit bottle selection as cans are moving more. Also, there’s less likelihood of breakage with cans when transporting them to the store and displaying them on the shelves,” she observes.
Sensory Experiences in Packaging
When launching a new product, Hiller-Webb recommends examining the packaging material to see how a particular cider’s product story differs from the sensory experiences promoted by other ciders. In this current cider market, there’s significant innovation in terms of packaging. These innovations include: sleek and matte finishes, change colors or reveal photos based on the temperature, glow in the dark, 4D high definition, and an interactive QR code on the label. While color and typography are huge elements in a label design, she recommends also looking at texture noting “Texture is one of the other senses and we’re looking for a full sensory experience and how that consumer is engaging with your brand.”
In addition, the ability of consumers to touch the package is very persuasive due to a concept called psychological ownership and the endowment effect. As Hiller-Webb stated, this means that once you’ve touched something, you’ve created a memory, thus starting the bond between brand loyalty and the consumer.
Another component is emotive and engaging copy. Is the copy informative while creating a delightful distraction that delivers gratification and deeper connections? Adding sound to the brand experience can define how consumers engage with a cidery’s website and social media platforms they engage in your social media.
Data and Consumer Values
The top five items that shoppers are looking for on a cider label are no sugar added, made with real ingredients, no high fructose corn syrup, no artificial sweeteners, and all-natural. Also, adding the region where the cider was made is important to regional sales but has no impact on national sales. In addition, non-alcoholic beverage sales have increased by 20% in the cider category.
Among the top trends in cider are no sugar, and low sugar ciders. While no or low ABV cider are increasing in popularity, there’s also a rise for cider above 8% ABV. In addition, the 12-ounce can is growing at 7%, as well as an increase in online sales. Apple remains the number one cider making up 60% of retail sales in both large and small cideries with 80% of the cideries producing less than 25,000 gallons.
As per statistics, those who consume cider are younger (21-54), gender-balanced, and primarily white along with Hispanic and mixed race. They are well-educated and understand their health and wellness goals. Also, they earn a higher income, which allows them to travel and experience some unknown and new cider flavors.
Of those consumers surveyed, 63% enjoy premium craft products and 50% say that taste is the reason they drink. Among those 22 to 34-year-olds, 87% agree that flavors drive their choices. In terms of which flavors appeal to cider drinkers, 17% are seeking nostalgic flavors, 27% are looking for limited-time seasonal and new flavors, and 11% are looking for internationally inspired flavors. Berry ciders rank the highest with stone fruit coming in second and citrus ranking third.
When assessing the values that govern these consumers’ buying decisions, the data indicates they want to support local and especially hyper-local partnerships and collaborations between local companies. These informed consumers make their financial decisions based on a cider maker’s sustainability practices, stewardship, and ethos. They want to know how a cidery is sourcing their fruit and how this fruit is processed. Among those consumers survey, 61% agree environmental issues are having an adverse impact on their current and future health with a 34% repeat rate brands with over > 50% sales from products making sustainability claims.
Also, with one in three Americans pre-diabetic, consumers are looking for products that address health concerns such as high cholesterol, high blood pressure, and diabetes. When buying food and beverages, 30% of consumers seek items with low sugar and 29% of consumers look for no added sugar with a 112% increase in searches for “sugar free alcohol.” In particular, the uptick in consumer use of GLP1 weight loss drugs has had a significant impact on the alcohol industry overall.
As cider is social, Hiller-Webb recommends that cideries explore how to create community interaction and activation of their 1,000 true fans. The number represents the baseline of those who will use their networks to further spread your message. She suggests humanizing the cider experience with consumers by taking them on farm tours and pressing days either virtually or in person. Be sure to demonstrate what factors led a cidery to support the specific causes that they do.
Armed with this data, design a marketing strategy specifically around how these values and demographics align with one’s company values. How has it been conveyed on the packaging to reach an audience, and what is their motivation to purchase?
For example, those B Corp Certified cideries who put their B Corp label on their ciders will see a 46% growth in sales. Conveying on the label that a cidery is women or minority-owned will result in an 81% and 232% jump in sales respectively. Also, sharing claims relating to regenerative agriculture or carbon impact on the label will result not only sales growth but also more positioning on shelves and in stores. In addition, putting minority and woman-owned certifications could result in lower trade show costs, lower import-to-export fees, travel benefits, and government accounts in those facilities that prioritize minority and women-owned operations.
In terms of retail and e-commerce sales, those cideries with four or more certifications can see an 8% rise in retail sales and 5% in e-commerce sales. Also, optimizing search engine optimization (SEO) will result in a 5% sales lift.
Since COVID-19, Hiller-Web has seen a lot more QR codes on cans and bottles. She encourages cideries to recognize that a QR code can be a fun and playful way to create brand awareness on the bottle or can. Among the innovations she’s seen in these QR codes include directing customers to recipes for cider cocktails, a listing of the company’s sustainability goals, a deeper explanation of what’s in the bottle or can, a video of the production produces, and a tour of the tasting room.
Positioning Cider Labels in the Marketplace
Hillel-Webb recommends conducting observational data forensics. With the retailer’s permission, go into the store with a cider that’s ready for market. Place it somewhere alongside other similar merchandise and take photos. Ask these questions: What do you see? What stands out? What’s missing? What are the observable packaging differences such as the artwork, color, fonts, certifications, price, and size? What’s working? What’s selling? How many facings do you have versus your competitors? Are they double stacked, indicative of high movement sales?
Also, talk to merchandisers to see what are they seeing and hearing from the consumer.Providing a retail buyer with a particular cidery’s internal and external data with a focus on local data pertinent to their store will result in them moving this product as it shows them that this cidery has done the necessary legwork.
Look at where products are placed elsewhere in the store beside the cooler. Then look for cross-merchandising opportunities. Ask the local grocery retailers for basket data. Also, while over 70% of shoppers overall prefer shopping in brick and mortar stores, they use online shopping primarily for purchasing staples. While cider is not listed anecdotally among the lists of staple items purchased online, obtaining basket data for both in-store and online sales points to what items consumers are also purchasing when they buy a particular cider. This data can suggest possible cross promotional opportunities with other products.
Another way to obtain retail observation data is to go to a retailer and take photographs of the cider in the store. Is it standing out? Is it holding up to the lighting? Does it hit with the stickers and shelf tags? Where would this new product be placed with this merchandiser? What education might be needed to go to the retailer that they can then pass on to the consumer such as providing educational materials that might come in with the pallet or in-person education with buyers and consumers?
Gathering and organizing with other cider makers will create advocacy when going to these retailers to prevent the large companies from creating marketing plans. Also, consider becoming a collective if several smaller cideries wish to target the larger commercial markets. The highest number of grocery retailers are still the mom-and-pop small chains that dominate 70% of the market across the nation.
When debating which ciders to bring to the retail market, Hiller-Webb states one needs at least three SKUs (Stock Keeping Units) before a buyer. “They want to have a choice and be able to have enough product to represent the diversity of your company. Also, as heartbreaking as it may be, be willing to pass on including any favorite and award-winning ciders that aren’t selling as well as other ciders.
Other questions to explore is if channels have been explored beyond retail like cruise lines, hotels, and institutions. How is local, regional, and national distribution being prioritized? These are different audiences with different considerations on a cider label. Hiller-Webb reflects, “Don’t treat everyone the same across the country but target labeling to appeal to those demographics in those geographic markets you’re targeting.”
For more information about this research, contact Shannon Hiller-Webb at shannonh@prosparus.com.