Untapped Potential In Hard Cider Market

Lehman's Orchard

Advertisement

Editor’s note: The market for hard cider is expanding, and apple growers are taking notice. American/Western Fruit Grower sought out growers who have added hard cider production to their orchards, and we got more feedback than we ever imagined.

With crop uncertainty and a need to generate other income from the orchard, apple growers are turning to a traditional American beverage — hard cider — as an additional source of revenue. With consumers’ interest in the local food movement, gluten-free options, and farming as a whole, orchards are adding and expanding their offerings beyond the traditional “sweet cider” into hard cider, and finding with it a demand for this product.to see how hard cider is made.

“The hard ciders are just as much a part of this excitement,” says Miranda Russell, co-owner of Russell Orchard in Ipswich, MA. “With (sweet) cider and hard cider and all of the products that we make, we’ve been fortunate to follow that groundswell of enthusiasm.”

Russell Holmberg, of Holmberg Orchards & Winery in Gales Ferry, CT, sees hard cider production as something done in the off-season. “The project grew out of personal interest and an excess of good quality apples for (hard) cider making.” (Holmberg is a GenNext Grower; for more, visit GenNextGrowers.com.)

Top Articles
Have a Plan For Climate Change? Why Fruit Growers Need To Act Now

The Hard Cider Market

According to IBIS World, sales of domestic hard cider have more than tripled from $178 million in 2007 to $600 million in 2012. To keep things in perspective, hard cider sales amount to less than 1% of the beer market, according to research firm Symphony IRI.

“The market is probably going to grow triple digits this year. It grew 80% last year, according to the data, from the previous year. We’ve been enjoying triple digit growth for five years now in the (hard) cider industry, not only us but the big boys, too,” says Mike Beck, president of Uncle John’s Cider Mill in St. Johns, MI, and the president of the newly-formed United States Association of Cider Makers. “No other beverage category has had this kind of interest ever in the history of beverages.”

For more from Beck on the market,to watch a video interview.

Bruce McIntosh, owner of McIntosh Orchards and Wine Cellar in South Haven, MI, attended a recent hard cider conference in Chicago and recalls a speaker who said, “(hard) cider represents about 0.3% of the beer market and they expect over the next few years that it will probably reach about 3%, which is a tenfold increase.”

A Natural Addition

Adding hard cider production to an orchard has several motivating factors, whether it is excess apples, sustainability, or to create an additional source of revenue.

For some growers, it is a value-added item on their farm, but for Steve Wood, owner of Poverty Lane Orchards & Farnum Hill Ciders, in Lebanon, NH, “it’s not value added. There is no value to these apples (we use) except for (hard) cider. This is not secondary value. It’s primary value. We are making cider from proper (hard) cider apples that are not very good to eat. There’s no place else to sell them.”

McClure’s Orchard and Winery in Peru, IN, shipped excess apples at wholesale prices for juice for several years. “We were just breaking even on our picking and equipment costs (on a good year),” says owner Jason McClure. “We decided that making our hard ciders and wines for purchase, as a value-added product, might be a way to create that sustainability and security we had been wanting.”  

Steve Lecklider, owner of Lehman’s Orchard in Niles, MI, notes that adding hard cider is a natural addition, saying “a lot of orchards may have a cider press and so you’re already there. All you have to do is make sure that you don’t pasteurize it, and adjust the sugar and a little bit of the acid and add the yeast, possibly use nutrients and make sure everything is clean, and you have a decent fermentation.”

“Why not?” is the answer Beck gave for adding hard cider. “We were doing a lot of value-added already. …  I also saw the boom in the wine industry here in Michigan and I figured I can do this with apples.” Beck also notes that he received a USDA value-added producer grant to add hard cider production. “They gave us close to $100,000 to get started in the hard cider business,” he says.

“We realized (we needed) to make our small farm economically sustainable, so we started learning about value-added production,” says Crystie Kisler, co-owner of Finnriver Farm & Cidery in Chimacum, WA.

Along with Kisler, Shannon Showalter, co-owner of Showalter’s Orchard and Greenhouse in Timberville, VA; Matthew Critz, owner of Critz Farms in Cazenovia, NY; and Jolie DeVoto Wade, co-owner of DeVoto Gardens in Sebastopol, CA, saw adding hard cider as a way to increase on-farm revenue while adding some stability. “The orchard and the hard cider were all part of a plan to generate a whole cash flow from the farm,” says Critz.

“We really want to be farmers, but we realized that working on the farm would not make us a sustainable living. So we had to turn to value-added product, and (hard) cider just made sense,” says DeVoto Wade.

Showalter notes that a local small business development center provided some inspiration. “The lady that worked with us closely (at the center) said ‘why don’t you consider hard ciders?’ She had just been to a cidery, and at that time it was one of two in the state of Virginia,” says Showalter. “I wasn’t aware that it was catching on as quickly as it was. And so as we started looking at it, we already had the equipment. We already had part of the up-front equipment, so it made sense for us.”

“A Long Slog”

Finnriver Farm & Cidery

Despite the current market growth, the hard cider industry wasn’t always an easy path for growers to follow. Just ask Steve Wood.

“When we first started doing this, we were wandering the streets of New York or other Northeastern cities trying to get wine distributors and wine shops to notice that (hard) cider was not Boone’s Farm Apple Wine. … It was a long slog.” Wood says that things started to change in 2000. Farnum Hill was featured in the New York Times Thanksgiving issue and was featured in Food & Wine magazine. “In New York we couldn’t get it at the corner bar and grille, because nobody knew what (hard) cider was. But we were in Gramercy Tavern, in Craft, and Chanterelle. We were in the hottest restaurants in New York.”

Beck agrees that “it was a lot of work” to get acceptance of hard cider. “A dozen years ago, the (hard) cider market isn’t what it is today. We had to do a lot of hand selling and education,” says Beck. “But a tasting room allows you to do that, real easily. … We could explain to them what it was, how we do it, and they could try the product.”

Education at Finnriver Farm was necessary, Kisler notes. “At first there was confusion about whether this was apple juice or hard cider. Some education was necessary about the differences between (sweet) cider and hard cider.”

Find Your Market

Lessons are often learned through trial and error. Such is the case with adding hard cider to your offerings. Growers say doing research, getting the local government involved in what you want to accomplish, and starting small are important factors to keep in mind. But, Matthew Critz sees the most important idea as simpler than that.  

For Critz, retail skills are essential, because on-farm sales are key. “The licensing is hard enough, but you can figure that part out,” he says. “You’ve got to be a real people person (to sell hard cider). If you’re going to be in the cidery business, and you’re going to sell out of your tasting room, you’ve got to be able to put on a big public face.”

“Unless you have deep pockets, start small. Go online to the bulletin boards and get advice and see how others have done it,” says Tom Frey, co-owner of ELFS Farm Winery & Cider Mill in Plattsburgh, NY. “Be prudent in investing.”

Kisler notes the distinction of having an orchard and producing hard cider, and growers should be wary of the time both tasks take. “We learned the hard way that managing an orchard and producing (hard) cider are two all-encompassing projects. We now know how much time it takes to do both and we have grown our crew to be sure we can take care of the trees and keep the bottles coming.”

A market for the hard cider is essential especially when growing apples specifically for hard cider, since those apples have no other use, Showalter advises. “Do your research. Find your market. … If you are going into it for yourself, look at what your production might be,” says Showalter. “A lot of the apples that are (hard) cider-specific are going to be a little tougher to grow. Most of them are older, antique varieties of apples, and lots of them have less disease resistance.”

Andy Sietsema, owner of Sietsema Orchards in Ada, MI, says the return outweighs the paperwork necessary in startup. “There’s a little bit of paperwork and waiting and dealing with the different government entities. It’s well worth it.”

Steve Frecon, co-owner of Frecon Farms in Boyertown, PA, cautions growers that hard cider is “not an outlet for excess apples.” He advises growers to plant hard-cider specific apples. “Those are the apples that make the best (hard) cider,” he says. “Study your orchard, look at what old (hard) cider varieties you already have, (see) what rootstocks they’re growing on if they’re doing well on the farm, use those same rootstocks again, graft new cuttings of those old trees, and start planting trees that are specific for making (hard) cider. (In production) the yeast is a really big importance; you’ve got to learn the art of making wine and the impact that yeast has on the fermentation process.”

Lecklider recommends getting local government involved in the process. “Apart from everything else, if you don’t have local approval to get that license, it’s going to be a really long process. First, seek approval from your township board. Tell them what you’d like to do, make sure they’re on board and make sure that you’re not going to have any resistance as far as getting a license,” he says.

“Customers will recognize and appreciate a well-made (hard) cider whether it is sweet or dry. Make sure you are putting out a quality product either way,” says Holmberg. “But, your sweet (hard) ciders will outsell your dry (hard) ciders by a wide margin.” Holmberg also advises hiring a consultant to help with layout, equipment purchases, and paperwork.

Wood sees the hard cider market as a huge opportunity for growers. “The really fundamental advice to growers, not necessarily to the cider makers, but to growers, is if you want to make money at this, you have to take the time you would take with a dessert apple or any other apple and learn whether you can grow it. Learn what you can grow on your site,” he says.

Future Of Hard Cider

Hard cider producers see a bright future for the hard cider market.

They notice the growth and have a very optimistic outlook on the future of the hard cider market in the U.S., like Sharon Campbell, co-owner of Tieton Cider Works in Yakima, WA. “From what we can see the market is growing to accommodate (hard) cider. We think that apple growers are the ones that will make this market continue to be relevant,” she says.

Frecon sees the broadening hard cider market as less of an introduction, but more of a reintroduction. “I’m pretty excited about the opportunity. The market is out there for hard cider. Frankly, there was an established market pre-Prohibition and it was actually Prohibition that killed the hard cider market. For us, it’s all about reintroducing the product and getting it out to the masses again,” he says.

“The hard cider market is taking off, it’s booming. It fits in with the local food movement. You can see the trees right where the apples come from,” says Sietsema. “It’s pretty much a tree to bottle or branch to bottle. Sustainability for hard cider.”

More Online:

Washington State University has a lot of research on hard cider. For more information, click here.

What Goes In To Your Hard Cider?

Uncle Johns Hard cider

Hard ciders are as unique as the regions and orchards they come from. Apple growers and producers talk about their favorite varieties to use in their hard ciders. Here are their responses:

Matt Critz, Critz Farms: “We’re using mostly American dessert apples around where we live in upstate New York. They’re growing Cortlands, Macs, Macouns, Galas here, and we use Romes. I’m blending in a whole bunch of European cider apples, maybe 5% of my blend.”

Mike Beck, Uncle John’s Cider Mill: “I do make one varietal, called Baldwin from obviously Baldwin apples. I love our American heritage apples, our regular Michigan big ones, things like Jonathan, Idareds, Northern Spies, Winter Banana, and Winesap. I also make (hard) ciders from English and French cider specific apples, even American specific cider apples. I make apple ciders from russeted varieties. I even make (hard) ciders from red flesh varieties, so they end up being very rosé colored.”

Shannon Showalter, Showalter’s Orchard and Greenhouse: “We’re currently growing some old, Virginia Winesap, and Staymans, Alomar Pippin. We’re planting more (hard) cider-specific, more English varieties of apples to add to that.”

Andy Sietsema, Sietsema Orchard & Cider Mill: “I have my base that I like to use. (We use) Cortlands, Spys, Jonathans, Macs, Honeycrisp. But last year, honestly, I took whatever I could get my hands on. I’ll even put some Honeycrisp in there; some people don’t like that but I use it. Lately I’ve had some good success in it.”

Steve Frecon, Frecon Farms: “We were fortunate to have Gravenstein already growing on the farm and we were also fortunate enough to have Wickston’s Crab. And that’s the key one, having crab apples. Crab apples offer the bitter astringency and tannins that you’re looking for to create a traditional, dry English (hard) cider. Winesap is a great (hard) cider apple.”

Jolie DeVoto Wade, DeVoto Gardens: “This past year, we did 100% Gravenstein apple. … The Gravenstein is the heritage apple of Sonoma county. Back in the ’70s and ’80s, it was the primary agricultural crop of Sonoma County and all the hills were blanketed in Gravenstein orchards. … Now most of the old apple farmers farm winegrapes because in the past 20 years, we’ve seen a boom in the wine industry in Sonoma County. … We’re keeping our roots in the apple industry,  (and) we wanted to kind of make a political statement and call our (hard) cider ‘Save The Gravenstein.’”
Bruce McIntosh, McIntosh Orchards & Wine Cellars: “In our particular (hard) cider we use five different varieties, one of which is of course, McIntosh. With a name like McIntosh, you have to have a McIntosh apple.”

Miranda Russell, Russell Orchards: “The apple we rely on the most is the Baldwin. It makes a very clean taste.”

Wade Bennett, Rockridge Orchards and Cidery (Enumclaw, WA): “Our base apples are Honeycrisp and Jonagold. The bittersweets are Dabinet, Michilin, and Roxbury Russett. The aromatics are McIntosh and Galas.

Crystie Kisler, Finnriver Farm & Cidery: “In terms of culinary fruit we’re using high-acid apple varieties such as Granny Smith and Pink Ladies. We also use traditional (hard) cider varieties like Kingston Black, Yarlington Mill, and Brown Snout. These traditional cider-variety apples are a precious resource.”

Tom Frey, ELFS Farm Winery & Cider Mill: “We use primarily dessert type apples; that is different than traditional English-style (hard) cider. The Champlain Valley has a lot of McIntosh apples, which cover two of the apple types. We use a lot of Macs.”

Sharon Campbell, Tieton Cider Works: “We planted 35 varieties to see how they would grow in the arid climate that we have in eastern (Washington), and from that we have narrowed it down to seven to nine that we really like.  Asmead’s Kernal, Golden Russet, Kingston Black, Yarlington Mill, Harry Masters Jersey, Harrison, and Dabinette.”

Kevin Zielinski, E.Z. Orchards Cidre (Salem, OR): “There are nine different varieties in our (hard) cider, and 85% of the blend are bittersweets. The balance is composed of medium-acid varieties. Yes I do have a few favorites: Domaines, Marie Menard, and Yarlington Mill (the latter being English) are fabulous bitter sweets. I grow several medium sharps, Champagne Reinette, and Roxbury Russet (an early American variety).”

Russell Holmberg, Holmberg Orchards & Winery: “We use a lot of Golden Russets for cider making. It is a good base for (hard) cider because of its high tannin content. However, we have been very successful with a (hard) cider made from McIntosh apples. What McIntosh lacks in body, it more than makes up for in aroma. Plus, it has a lot of acid that we can balance with a high residual sugar to make a sweet-tart flavor.”

More online:

Bittersweets, sharps, and bittersharps are all ways to describe the different varieties of hard cider apples. For more information on hard cider terminology, click here.

Hard Cider Makers Band Together

Lehman's Orchard Awards

The United States Association of Cider Makers (USACM) was created to be a resource and voice for hard cider producers throughout the country and to promote the beverage. Mike Beck of Uncle John’s Cider Mill in St. Johns, MI, is the organization’s first president and Steve Wood of Poverty Lane Orchards & Farnum Hill Cider in Lebanon, NH, is a board member.

Beck said the organization’s goals are to “learn from each other, learn from professionals in the industry, and learn from academia. We’re also hoping to be a mouthpiece for the industry.”

He said the main goal for USACM is the taxation issue that hard cider producers face. Hard cider, following Prohibition, was and continues to be taxed differently than beer. Hard cider’s alcohol level can vary depending upon the sugar content. It can be taxed as a beer, a lower tax rate than wine, when the alcohol by volume (ABV) is less than 7%. However, when the ABV is greater than 7%, it is taxed as a wine. When the carbonation of cider is above 39% per volume, the federal champagne luxury tax of $3.30 a gallon is applied.

“If we’re not careful, our products can go from being taxed very reasonably to very expensively. The same tax that very expensive French champagne pay, which is about $3.30 a gallon. It can actually jump from $0.17 to $3.30 a gallon if one little thing is wrong in your recipe, like too much alcohol or too much CO2,” said Beck.

In March, Sen. Charles E. Schumer (D-NY) introduced legislation to stabilize the labeling and taxing of hard cider and pear cider. In the proposal, hard cider’s alcohol by volume would be raised from 7% to 8.5%, and be taxed like a beer. To read more on Schumer’s legislation, click here.

For more information on USACM, visit www.ciderassociation.org.

0