Cider - Ibec.ie

CiderThe Irish CiderMarket Report2018abfi.ie/cider

The Irish Cider Association has producedits first cider report since 2012. Giventhe growing number of cider producersin Ireland and the increased interestin the product from some of Ireland’sestablished drinks companies, theIrish Cider Association has decidedto reactivate in order to represent theinterests of the sector. A key part of thisreactivation is to produce a cider marketreport to illustrate the performance ofthis alcohol variant.Once the spirits category is split into different variants (such as whiskey, vodka and gin)cider is Ireland’s third most popular alcoholic beverage with a market share of 7.5%in 2018, according to Revenue. Its market share that has decreased marginally from7.7% the previous year. Cider consumers in Ireland are blessed with an unprecedentedselection of cider brands from both craft cider producers and some well-establisheddrinks manufacturers. It is estimated that over 50,000 tonnes of apples are used everyyear to manufacture cider in Ireland. In 2018 cider consumption rose marginally by0.43% compared to the previous year.2

While the increased selections of cider products for Irish consumers is encouraging, theperformance of Irish cider exports in the last decade is a cause for concern. Today, about85% of cider exports go to the UK. Uncertainty around Brexit and the looming threat of anexcise increase in Budget 2020 could impact on investment within the sector.Like other alcohol variants, cider makes a significant contribution to the exchequer to thetune of 61 million in 2018. Over the past decade it has contributed over half a billion Euroin excise alone to the exchequer. Irish cider consumers pay the third highest rate of exciseon cider in the European Union. Considering the uncertainly around Brexit, the Irish CiderAssociation calls on the government to reduce the excise rate on cider in order to offerrelief to the cider producers.Jonathan McDadeHead of the Irish Cider Association3

Total cider consumption(litres of cider)YearLitres of e: RevenueCider consumptionSource: Revenue4

Today, about 85% ofcider exports go tothe UK. Uncertaintyaround Brexit andthe looming threat ofan excise increase inBudget 2020 couldimpact on investmentwithin the sector.5

Consumption market 018Beer45.2%Spirits20.5%Source: RevenueThe cider industry hascontributed over half abillion euro in excise inthe last ten years.6

Excise 2376.461.21239.94.9%Source: DIGICider/Perry 61.2mCider/Perry – m / annum7060BeerWine50 201620172018Source: DIGI7 372.2m 430.1m

It is estimated thatover 50,000 tonnes ofapples are used everyyear to manufacturecider in Ireland.8

Consumption per capitaYearAdult population –Millions (15 and over)Million litresAlcohol content (5%)of ciderAverage ciderconsumption per adult,litres of pure rce: CSO and RevenueMillions of litres of alcoholcontent (5%) of 12201320142015201620172018Source: CSO and Revenue9

Excise & VAT on a pint of ciderYearCider/PerryOn basis of CSO national averageprice of a pint of cider in a bar 5.14VAT at 23% 0.96Excise on cider of alcohol contentof between 2.8% and 6% 0.54Amount left over 3.64Total Tax 1.50% of price29.2%VAT23%Excise6%Source: CSO and Revenue10TotalTax29%

Export valueYearExport 5201546201668.3201749.9201848.8Source: CSO export statsExport value 172018Source: CSO export stats11

Cider: local v importedLitres of cider sold per annum80,000,000Cider: local vimported - 7%30,000,00020,000,00010,000,0000201720182017l Locall Importedl 73%Imported25%Change 3.18%Change-7.00%Change 0.43%Change-2%2018Change 2%Local1275%

Cider: Shareof On-vs-OffPremises 2018On-tradeOff-trade50.8%49.2%Source: Industry estimatesQuarterly breakdownLitres of cider sold in Ireland20182017201620152014Quarter Quarter 7Quarter 5Quarter 2Source: RevenueQuarterly ranking performance of cider sales in Ireland20182017201620152014Quarter 14th4th4th4th4thQuarter 21st1st2nd1st2ndQuarter 32nd2nd3rd2nd1stQuarter 43rd3rd1st3rd3rdSource: Revenue13

Cider excise rates in EuropeExcise duty / per hectolitre for cider at 5% ABVRankCountryRate1Finland 187.002Sweden 141.383Ireland 94.464Estonia 84.415Denmark 71.756Lithuania 65.467Latvia 64.008United Kingdom 45.669Netherlands 44.2410Hungary 31.6911Belgium 24.0012Poland 22.4813Portugal 10.4414France 1.33 94.46 45.66Source: European Commission Excise Duty Tables revision - 2018 1.33 10.4414

187.00 141.38 84.41 71.75 65.46 64.00 44.24 22.48 24.00 31.6915

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Alcohol Beverage Federation of Ireland84/86 Lower Baggot StreetDublin 2T: 353 1 605 1500E: info@abfi.ieW: www.abfi.ie@abfi ireland

Irish cider consumers pay the third highest rate of excise on cider in the European Union. Considering the uncertainly around Brexit, the Irish Cider . Source: European Commission Excise Duty Tables revision - 2018. 187.00 141.38 84.41 71.75 65.46 64.00 31.69 44.24 24.00 1.33 22.48 15. Notes 16. Notes 17 .