Covid-19 pandemic had profoundly negative impact on Irish cider sector last year, according to new report

Sector calls for urgent implementation of excise relief for craft cider producers, and wider alcohol excise cut to support recovery

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8 June 2022 | 0

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The Covid-19 pandemic had a hugely negative impact on Ireland’s cider sector in 2021, but there were some early signs of recovery in the second half of the year, according to a new report released for World Cider Day today on Friday 3 June 2022.

The Irish Cider Market Report from Drinks Ireland|Cider shows that both sales and exports fell drastically last year, with producers now calling for an excise reduction to support the sector, as well as the urgent implementation of an excise relief programme for craft producers.

Cider, like beer, is very popular in the on-trade, which was shut or heavily restricted for large parts of 2020 and 2021, both in Ireland and in key export markets. Last year, domestic sales declined by 4.2%. In total, they were down by 15.1% since 2019.

Cider’s share of the alcohol market in 2019 was 7.4%. By 2021, it fell to 5.8% which is a fall of 1.6 percentage points, as people shifted to wine and spirits when consuming at home.

Exports were also very significantly hit, down by over a half (56.2%) in 2021 to an estimated value of €25 million.

The most popular destinations for Irish cider were the UK, the US, the Netherlands, Australia and New Zealand respectively.

Despite the major challenges, Drinks Ireland|Cider says there is some hope for optimism and signs of early recovery, as the second half of 2021 saw a 20% increase in cider sales, as hospitality restrictions eased and venues across Ireland welcomed customers back.

The trade body said that a full recovery and subsequent growth will be very challenging in the absence of support from Government, calling for an excise cut on alcohol. This would help bring Ireland in line with other countries, it says, as we currently have the third highest excise on cider in Europe, after Finland and Sweden.

 

Seamus O’Hara, Chair of Drinks Ireland|Cider and CEO of Carlow Brewing Company, which makes Falling Apple Irish Cider, Craigies Irish Cider & Cooney’s Cider said that support is needed at this critical stage.

“With native orchards and great quality diverse homegrown products, there is huge opportunity for the Irish cider sector to mirror the success of other parts of the drinks industry, like Irish craft beer and Irish gin,” O’Hara said. “After two extremely challenging years, there are some early signs of recovery. The full reopening of Ireland’s hospitality sector in January 2022 will hopefully provide a much-needed boost, but support is certainly required at this critical stage.”

“We very much welcomed last year’s announcement that an excise relief programme would be rolled out for small cider producers in Ireland, and look forward to seeing details in this year’s Finance Bill, as this measure is urgent for the sector,” added Jonathan McDade, Director of Drinks Ireland|Cider.

“In order to facilitate recovery, a wider alcohol excise cut is also vital. Currently, about 28% of a pint of cider is taken on tax. This is totally out of line with most of our European neighbours. A cut would support the sector, facilitating growth, the creation of jobs and in turn the wider economy.”

 

 

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