Hard cider and apple wine offer new value-added marketing opportunities to the apple industry. Both products are situated in rapidly growing categories of the beverage industry. The development of effective marketing strategies for these products requires an understanding of the forces driving competition in these markets. This paper provides background information to support competitive analysis and strategy development. Development of these markets will be positive for the apple industry, but the effect is likely to be limited in volume. This paper is issued as a part of a larger project focused on the processing apple industry. The purpose of the paper is to provide apple growers and processors with preliminary information on the markets for hard cider and apple wine to support the analysis of marketing opportunities and the development of effective competitive strategies. This paper will be updated with additional consumer marketing research findings that will be included in the final report for this project.