Friday, February 11, 2011

Stella Artois' New Cider a serious risk to Bulmers/ Magners?

Stella Artois has decided to try and combat the growing number of beer drinkers lost to the over-ice cider segment in the UK by moving into the category with a new product extension; Stella Artois Cidre. This will be the first time a major lager brand has extended into this segment and the drink will be primarily aimed at affluent consumers aged between 20 and 30. The move is going to be backed by a new advertising campaigns s well as point of sale promotions in the coming months. Whether the brand can challenge Heineken owned Bulmers and Magners within the market is questionable however due to a distinct lack of consumer association between the brand name and cider. It will be interesting to follow the development of this link by the Stella in the coming months. I for one see this as a dangerous move as it will be extremely costly to penetrate this market place and the Bulmers brand itself has already found this market difficult enough to command in terms of profitability, particularly outside of the UK. I guess only time will tell how popular a high end cider labelled with a lager brand will be. I dont think Bulmers/ Magners position is under threat just yet!

Sean Wiemann

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