International Marketing: Old Mout Cider Market Analysis in Australia

This report presents a market analysis of the Australian cider industry, focusing on the potential growth opportunities for Old Mout Cider, a brand owned by Heineken. The analysis includes an overview of the cider market, its growth trends, and the factors influencing consumer behavior. A PESTLE analysis is conducted to examine the political, economic, social, technological, legal, and environmental factors impacting Old Mout Cider's operations in Australia. The report highlights the increasing popularity of cider, the warm climate's favorable environment for consumption, and the economic benefits of local production. It also addresses the challenges, such as the high sugar content in cider and the need for technological advancements in distribution. The conclusion summarizes the findings, emphasizing the potential for Old Mout Cider to thrive in the Australian market by offering flavored ciders. A reflection on the learning experience and areas for improvement is also provided.

Running head: INTERNATIONAL MARKETING
International Marketing
August 14
2019

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Table of Contents
Introduction................................................................................................................................2
Overview of Old Mout Cider.................................................................................................2
Market Analysis.....................................................................................................................2
PESTLE Analysis...................................................................................................................4
Conclusion..................................................................................................................................6
Reflection...................................................................................................................................6
References..................................................................................................................................8

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Introduction
Market analysis is the procedure of examining the dynamics and defining the characteristics
of a specific market in the industry. Accordingly, the capability of the business to evaluate
the market depending on quantitative and qualitative approaches is called as market analysis
skills. Market analysis also offers detailed information about the market that will be served
and the demand that will be met, confirming that the company invests its marketing budget in
the most effective way (Murphy, 2012). The intent of this paper is to perform the market
analysis of cider market of Australia for the Old Mout Cider brand of New Zealand. The
market analysis is comprised of detailed analysis of the Australian market in order to identify
the possibility of the growth opportunities for the brand. In relation to this, the PESTLE
Analysis tool is being applied to properly analysing the factors that can impact the operations
of the brand in the Australian market.
Overview of Old Mout Cider
The Old Mout brand owned by the Heineken is said to be the most famous and leading
bottled cider in the market of New Zealand and the number one bottled cider in New Zealand.
The brand has strong Kiwi heritage and a sense of humour as per the brewer. In the initial
period that brand introduced three flavours that are Kiwi & Lime, Passionfruit & Apple, and
summer berries that were boosted with the campaign of amount £3m (Black, 2014).
Market Analysis
The industry of Cider Production has thrived in last five years, with the increasing popularity
of the cider. The image of the Cider has been changed in past years for attracting new
customer generation craving for the alternative alcoholic beverage (Stainkamph, 2016). In the
year 2016, the Global Market of Cider was valued at over $10,667 million, and by 2023 it is

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predicted to touch around $16,252 million, rising at CAGR of around 6.1% from the year
2017 to 2023 (Market Research, 2015). Cider is considered to be one of the drinks that is
made up of low alcohol manufactured by complete or partial fermentation of pear juices,
apple juices, etc. The alcoholic ingredient range in the beverage ranges from 1.2% to 8.5%
ABV (Market Research, 2015). Besides this, the cider can be carbonated or still depending on
the secondary fermentation as well as injection of the carbon dioxide. Presently, the market of
cider lists the increased rate of growth in comparison to other drinks of alcoholic in diverse
areas of the world. The development of the global market of cider has taken place by the
increasing demand for the gluten-free drinks and augmented preference for the beverages
with low alcohol. But, the high content of sugar in the cider is the key factor that effects the
growth of the market, as it results in increasing rates of obesity in diverse areas. On the other
hand, the increasing cider popularity in the emerging nations of Asia-Pacific and LAMEA is
expected to offer growth opportunities for the expansion of market for the business (Euro
Monitor, 2019). The entire cider market is segmented depending in the channel of
distribution, geography, product, and packaging. Based on product, the market is divided into
fruit flavoured, perry, and apple flavoured. In terms of channel of, the market is divided
based on off-trade and on-trade. The segment of off-trade is segmented into specialist
retailers, supermarkets, convenience stores, and hypermarkets. Glass bottles, Draught, plastic
bottles, and cans are some of the diverse kind of packaging utilized in the market of cider. On
the basis of geography, the market is analysed all over Asia-Pacific, North America,
LAMEA, and Europe.
In the Australian market, per capita consumption of alcohol has decreased in last five years,
comprising huge decrease in the all the segments of the product. But, the cider has jumped
this tendency with strong growth in the per capita consumption over the time duration. The
warm climate of Australia has allowed an ideal environment for the consumption of cider,

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because number of customer consumes cider due to its refreshing and light nature (IBIS
World, 2019). In addition to this, the production of the Cider in the Australian market support
in increasing tourism, improving living standard of fruits growers, generating employment,
and other economic activities in the area. The local cider production increased the demand for
the pears and apple juice, further providing opportunity to the growers by eliminating the low
juicing fruit quality from the market of whole fruit thus augmenting the average quality and
the Australian fruit price, and allows an alternative market for produce (Cider Australia,
2015b).
PESTLE Analysis
PESTLE Analysis is the market analysis tool that is used by the businesses to examine the
external environment of a country. The tool supports in identifying the factors or forces that
have major impact on the business in a specific market and framing strategies accordingly
(Perera, 2017). The environmental factors that can impact the operations of Old Mout Cider
in the Australian market are presented below:
Political – The political force is related to the rules and regulations implemented by the
country’s government in favour or against of specific product or service in order to protect
the rights of customer. The cider market in Australia is majorly based on the taxation
regulations. The changes that businesses can experience in this industry are little changes in
the policy that is increasing taxes because the government, on the state and federal level,
favour the rates (Allenby, 2019). The cider market of Australia is obliged to comply with the
rules of state and federal in terms of production, advertisement, and distribution. Similarly,
Old Mout Cider can operate smoothly its business by offering different flavoured cider to the
target audience.

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Economic - The cider industry is huge but at the same time it is saturated. Companies with
big name that are involved in the business from many decades contend among themselves for
space in the stores of liquor and also for the attention of the customer. These businesses are
diverging into the international market for targeting new audience. This is considered to be
the strategic step for increasing the base of the customer and also results in increasing job
opportunities across the world. The expansion plan of Old Mout Cider will work in the
Australian industry and will offer increased job opportunities for the citizens.
Social – The cider is continually promoted throughout the media, even if it is not seen or
noticeable. People can see their favourite actor holding the bottle or can in their latest movie.
This highlights that cider is celebrated but at the same time mocked and labelled as
dangerous. There are two types of customer in the industry that are religious and health
conscious. Religious people come against the promotion of cider and disallow people to
consume it in accordance to show their faith. Old Mout Cider targets health conscious
customers because this product is comprised of healthy fruit ingredients and low alcohol
which is not dangerous for the health of the consumer (Jasper and Sullivan, 2014).
Technological – The cider industry in Australia majorly depend on the technology for
developing and filtering the channel of distribution. Deprived of this technology, the market
would not have any cider on the shelves of store. But, if a business do not have a leading step
towards technology in its procedure of distribution, it results in delays. It can even restrict the
volume of cider manufacturer or can drab the business out of industry (Market Watch, 2019).
This reflects that to operate successfully in this industry, the company must have advanced
technology. Old Mout Cider brand is owned by Heineken which is one of the well-known
companies in this industry which reflects that it already has strong base in the market in terms
of technology.

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Legal – Legal aspects of the PESTLE analysis talks about the implemented laws and
standards by the government to restrict the production or retailing of any product to safeguard
the rights of the customers and also businesses. In the case of Cider industry, the Australian
government has introduced Australia New Zealand food standards code which includes the
permitted ingredients, processing aids, and additives. In addition to this, the codes also talks
about the packaging practices of cider and the information that must be shown on the
labelling of the product (Cider Australia (2019a). The analysis reflects that it is important to
inform customer what they are purchasing and consuming. In case of Old Mout Cider brand,
it will smoothly operate its business in the Australian market due to its link with the well-
known company which is involved in this business from decades.
Environment – The importance to this factor of the analysis has been increased in the recent
time frame due to increasing pollution and diseases due to the operations of businesses. The
Australian government is very particular about the environmental laws for safeguarding the
nature. In order to operate in the country, Old Mout Cider brand will have to reduce wastage
and contribute towards the green environment.
Conclusion
The above report has presented the market analysis of the cider industry of Australia in order
to identify the potential growth for the brands like Old Mout Cider brand. The analysis
highlights that the Australia cider market is flourishing and offering increased opportunities
for the businesses to increase their revenue by offering flavoured cider. In the similar way,
Old Mout Cider brand can operate its business in the country smoothly by offering low
alcoholic drinks with fruit flavours to the customer.

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Reflection
Through working on this project, I have significantly enhanced my skills of writing, analysis,
reading, and learning. I have observed these improvements in skills many times whenever I
have presented any project. Through this task, I am able to focus on my strength and use
them in overcoming my weaknesses. This expansion and growth is unique for me. Now I feel
confident while writing or presenting any work. In addition to this, in my previous the
mistake that I committed was limited analysis and research due to which the real scenario of
the industry was not being reflected. However, in the present assignment I have tried to
overcome those weaknesses provide the detailed analysis of the Cider industry in Australian
market to present the results and outcomes. For identifying the real image of the industry, I
have conducted the detailed research of the Australian market to identify the growth
opportunity for Old Mout Cider brand in the market. In the future, I hope that I can read and
present a detailed analysis of any market or industry at an expert level.

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References
Allenby, T. (2019) Cider Australia Urges Government To Update Cider Definition [Online].
Available from https://www.beerandbrewer.com/cider-australia-calls-for-clarity-cider-
definition/ [Accessed 15 August 2019]
Black, R. (2014) Heineken Launching a Kiwi-flavour Kiwi Cider [Online]. Available from
https://www.morningadvertiser.co.uk/Article/2014/03/27/Heineken-launches-Old-Mout-cider
[Accessed 15 August 2019]
Cider Australia (2015a) Regulation [Online]. Available from
http://www.cideraustralia.org.au/industry/regulation/ [Accessed 15 August 2019]
Cider Australia (2015b) Industry [Online]. Available from
http://www.cideraustralia.org.au/industry/ [Accessed 15 August 2019]
Euro Monitor (2019) Cider/Perry in Australia [Online]. Available from
https://www.euromonitor.com/cider-perry-in-australia/report [Accessed 15 August 2019]
IBIS World (2019) Cider Production - Australia Market Research Report [Online]. Available
from https://www.ibisworld.com.au/industry-trends/specialised-market-research-reports/
consumer-goods-services/cider-production.html [Accessed 15 August 2019]
Jasper, C., and Sullivan, K. (2014) Australians expected to spend big on cider, as beer and
spirit consumption continue to slide [Online]. Available from
https://www.abc.net.au/news/rural/2014-09-05/nrn-cider-outlook/5720356 [Accessed 15
August 2019]

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Market Research (2015) Cider Market by Product (Apple Flavored, Fruit Flavored, and
Perry), Distribution Channel (On-trade and Off-trade), and Packaging (Draught, Cans,
Glass Bottles, Plastic Bottles, and Others) - Global Opportunity Analysis and Industry
Forecast, 2017-2023 [Online]. Available from https://www.alliedmarketresearch.com/cider-
market [Accessed 15 August 2019]
Market Watch (2019) Cider Market 2019 Global Share, Trends, Segmentation, Analysis and
Forecast to 2025 [Online]. Available from
https://www.marketwatch.com/press-release/cider-market-2019-global-share-trends-
segmentation-analysis-and-forecast-to-2025-2019-03-06 [Accessed 15 August 2019]
Murphy, J.J. (2012) Trading with Intermarket Analysis: A Visual Approach to Beating the
Financial Markets Using Exchange-Traded Funds 1st ed. U.K: John Wiley & Sons.
Perera, R. (2017) The PESTLE Analysis 1st ed. U.S: Nerdynaut.
Stainkamph, M. (2016) Australian cider industry to be worth more than $404 million in
2021: Research [Online]. Available from
https://www.smartcompany.com.au/growth/australian-cider-industry-to-be-worth-more-than-
404-million-in-2021-research/ [Accessed 15 August 2019]