Craft brewers, beer makers compete as cider sales soar

This year's third annual craft cider week in Ontariowill include the grand opening of a bar that pays homage to thefruit-based alcoholic beverage by offering more than 80 differenttypes of cider.

This ode to the fermented fruit drink -- already popular in theU.K. and France-- shows cider is clearly having its moment in the spotlight inCanada.

• Brick Brewery thrilled with 2016 fiscal result

Cider started gaining momentum with Canadian drinkers severalyears ago and the growing taste for the beer alternative hasprompted craft brewers and established beer giants to fight for ashare of the profits.

"Similar to the way craft beer has carved out a niche foritself, I think craft cider has just as much if not morepotential," said JoshuaMott, the son of craft cider brewers whowill open an establishment called Her Father's Cider Bar+Kitchenin Toronto in late May.

Thomas Wilson, who grew up on his family's apple orchard andco-founded the Spirit Tree Estate Cidery in Caledon, Ont., in 2009,said he and his wife wanted to continue growing apples and turned tocider to add value and allow the business to run year-round.

In the years leading up to the launch, he studied the potentialfor selling the drink in Canada."We saw the beginning of the uptick in cider," said Thomas,chairman of the Ontario Craft Cider Association, a relatively neworganization that now has 20 members as more people get into thebusiness.

"The market is very hot right now," Wilson said. "It's open toanyone that's there first."The Ontario Craft Cider Association considers any locally owned,independent cider producer that brews up to 2.5 million litresannually for domestic consumption qualifies for the craftdesignation.

As the number of cider-makers grows, so do the variations theyconcoct. The taste ranges from dry to sweet, and ciders tend to fallbetween four and eight per cent alcohol content.

This year's Great Lakes International Craft and Perry Competitionin Grand Rapids, Mich., judged nearly 800 entrants in its commercialdivision more than double the 300 competitors in 2013.

2013 spurt

Sales started to spike in 2013, according to EuromonitorInternational's report on cider trends in Canada.

Overall cider sales jumped 20 per cent to $61 million at storesoperated by the Liquor Control Board of Ontario between 2014 and2015, with sales of craft cider up 93 per cent.

Mike Lachelt, co-owner of Salt Spring Wild Cider on B.C.'s SaltSpring Island, said people choose to buy craft ciders partly becauseof increased interest in local products and because they may trustthese companies more than bigger brands.

Majors move

But it's not just small, craft cideries entering the competition.Major beer manufacturers are also launching cider brands as theysearch for ways to offset sagging beer sales, according toEuromonitor.

Molson Coors Canada, for example, sells three ciders in Canada --Strongbow apple cider, Molson Canadian cider and the recentlylaunched Wanderoot craft cider. They are only available in BritishColumbia, Alberta and Ontario.

Wanderoot is Molson's answer to the rising consumer taste forcraft cider and is targeted at older, more discerning drinkers wholove craft products, said Kristi Knowles, vice-president ofinsights, innovation and portfolio strategy.

The company has been eyeing cider's potential for some time. Fouryears ago, it decided to work try to become the national marketleader and, according to internal data, its ciders now account forabout 23 per cent of market share, she said.

Molson Coors Canada wants to grow that to more than 40 per centover the next six years. Knowles said part of that strategy isgetting more of its cider on draft in restaurants and bars,experimenting with new flavours and selling variety packs.

"We have our eyes open to what gaps we have in our portfoliogoing forward and how we might fill them," said Knowles, suggestingthe company may launch more innovative products or purchase anexisting product. But Knowles said the company believes its threecurrent offerings cover a broad segment of consumer tastes and willcontinue to invest in them heavily.