The 7.5% alcohol by volume white cider, a £28m-plus brand in the off-trade that is almost permanently on a 50%-extra free promotion on two-litre PETs, has looked increasingly out of place in the SCB portfolio since the company unveiled its responsible marketing policy in June.
A three-litre White Lightning PET contains 22.5 units of alcohol, more than the recommended weekly intake for the average man. At a retail price of £2.57, it costs 11p per alcoholic unit and 20p per unit on £2.99 price-marked packs.
“It [white cider] is the cheapest way to buy alcohol in the UK. This is pocket money these days. There is no other alcohol category that has the same challenge as white cider,” said Keith Hogg, SCB’s off-trade sales managing director.
‘Extra free’ promotions on White Lightning, which has an 8.5% share of the off-trade cider market, will disappear from January 2005, effectively increasing the price by 50% on two-litre PETs.
The media focus has been on the on-trade since the Government published its Alcohol Harm Reduction Strategy earlier this year but SCB fears it is only a matter of time before the off-trade comes under the microscope.
“This is not an easy one. People will have to use their own judgement in terms of the impact on their own business. There is a lot of white cider sold in the UK and it isn’t sustainable for the long term,” he said. “I am asking our customers to consider carefully their whole range of white ciders. If other people continue to sell white cider at 50% extra free, it still means people can buy it at incredibly low prices.
“We accept our volumes on White Lightning will go down dramatically in the first 12 months. It does depend on the approach each customer takes and whether other producers follow us,” he said.
SCB is currently talking to retailers and wholesalers to get them onside with its initiative. Some multiples, such as Tesco and Asda, only stock White Lightning as their white cider offering.
An Asda spokesman said: “It is their [SCB] decision to make. We will see how our customers feel, but it isn’t something we have got a problem with. When you have products that are so high in abv, they can be abused.”
A spokesman for Constellation Europe, which owns the Matthew Clark cider brands, said the company did not have the same issues with Diamond White as SCB had with White Lightning, as PET only accounted for around 30% of brand sales. “Diamond White is the premium white cider brand. It has a higher RRP than most, at £3.49 for a two-litre PET,” he said.
Booker marketing director Mark Collier said: “We are always keen to promote and encourage responsible drinking. We are constantly reviewing our own label proposition to ensure that we support this initiative.”
