This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Hop Cider Succeeds Where Beer Bros Fail

PORTLAND, Ore. (TheStreet) -- There's nothing more frustrating than some loudmouthed moron pointing out a problem without offering any sort of solution.

Especially when you're the moron in question.

Last month, we got all over the case of the folks at SABMiller-MolsonCoors (TAP - Get Report) joint venture MillerCoors and their competitors at Anheuser-Busch InBev (BUD) for branding and releasing hard cider for men. As Nielsen has made clear, the split between male and female hard-cider drinkers is close to 50-50, unlike the 72% male/28% female split for beer.

Since the big brewers are so engrossed in their demographic data and have been pushing light lager with a huge male audience for so long, their overcompensation on bro-targeted ciders such as MillerCoors' Smith & Forge and A-B's upcoming Johnny Appleseed is likely just a reaction to the male market share they're losing from their economy and premium beers. They want those young, departing guys to jump to another product in their supply chain, but know that drinking-age millennials will pick up a cider just as quickly as they'll go for a craft beer. It makes sense that the big brewers would want to target males specifically, but cider is rarely marketed by gender tropes and tends to draw a gender neutral audience even when it does.

So what should the big brewers do? Don't target men, just target beer drinkers.

Must Read: Salmon: Mark Zuckerberg, the Warren Buffett of Technology?

Nat West alluded to that approach when we ran our "bro cider" story in early March. The founder and owner of Portland-based Reverend Nat's Hard Cider just opened a brewery and tasting room in North Portland and has a line of ciders that ranges from potent, hoppy varieties to more winelike blends. They reward a discriminating palate but, like their cidermaker, they don't discriminate.

If someone who loves sweet wines and bitter beers can find a middle ground in cider, should it be a huge surprise that a growing number of U.S. drinkers are doing so as well? According to market research firm Symphony IRI, cider sales in the U.S. increased 81% by volume and 84% by revenue in 2012. Before that, it made up just 1% of the overall beer market. Last year, it was up 103% through November. That's better than the low double-digit percentage growth of craft beer during the same span and far better than the overall beer market, which has declined in four of the past five years.

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
BREW $8.40 0.00%
BUD $123.05 0.00%
SAM $152.51 0.00%
TAP $98.17 0.00%
AAPL $94.19 0.00%


Chart of I:DJI
DOW 17,651.26 -99.65 -0.56%
S&P 500 2,051.12 -12.25 -0.59%
NASDAQ 4,725.6390 -37.5850 -0.79%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs