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Distell sour on cider cheats

Cape Town - Stellenbosch-based liquor giant, Distell Group[JSE:DST] has lashed out against "high profile liquor producers" that are undercutting the prices of its "genuine range of ciders".

Distell, the third largest producer of ciders globally, produces brands like Savanna and Hunters.

In a statement issued on Tuesday, Distell’s Cider and Ready to Drink (RTD) division head Kay Pillay said several high-profile industry players had entered the market with malt-based drinks given an apple flavour "that they are trying to pass off as authentic ciders".
 
He said these "pseudo ciders" were generally cheaper to produce than ciders, allowing manufacturers to undercut Distell’s brands on price." Pillay declined to identify the high profile industry players.
 
There are a number of participants in the vibrant local cider market which include beer giant SABMiller [JSE:SAB] which produces Redds and Sarita, and rival Brandhouse which produces the Foundry cider brand.

To qualify as a cider, the Liquor Products Act stipulates the products must be made from apple or pear juice.

Pillay said that in the domestic market there had been some public confusion as to what constituted a genuine cider with several apple-flavoured ales "masquerading as the real deal".
 
In the case of a genuine cider, the taste was derived from the fermenting real apple juice rather than flavouring other alcoholic drinks with apple flavours, Pillay said.

The Advertising Standards Authority (ASA) recently ruled in favour of Distell when the company lodged a complaint against the producers of an apple ale that was misleadingly packaged to create the impression that it was a cider, said Pillay.

As a category brand, ciders continue to outstrip the average growth in the liquor sector.

Ciders showed an 8% year-on-year growth in volume for the 12 months to May 2010. "This compares with the entire liquor category, which remained flat for the period," said Pillay.

- Fin24.com
 

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