From posh shandies to a proper pint on draught, low- and no-alcohol drinks are a bright spot in the UK beverage landscape, reports John Porter
Growth is growth, and in an on-trade drinks market that has been moribund overall, both drinks brand owners and operators have seized on the low- and no-alcohol drinks category as a glimmer of light in a gloomy landscape.
CGA figures show that the low and no category grew 1.4% by volume in the on-trade in the year to March 2024, compared to an overall wet sales volume decline of -3.3%. Over the same period low and no sales grew 1.8% by value in the on-trade, compared to an overall value decline of 0.6%.
To an extent, the sector is still playing catch-up in trying to understand the changes driving consumer behaviour. Research for KAM Media in partnership with 0.5% abv lager Lucky Saint shows that 30% of on-trade occasions now involve no alcohol and another 30% involve a mix of alcoholic and non-alcoholic brands. And 18- to 24-year-olds, the biggest demographic in terms of pubs, increasingly don’t see alcohol as essential to a night out.
Adnams’ Ghost Ship 0.5% pale ale, launched in 2018, is the best-selling low and no ale in the on-trade, CGA data confirms. Fergus Fitzgerald, head of production at Adnams, says: “It’s now attracting customers who don’t really know the original beer. The low and no market is becoming ever more competitive as both new and established brands take advantage of its rapid growth. We have a beer that people love, for the reason we hoped they would – it’s a great tasting and great looking beer above all.”
Rob Fink, founder of no and low beer brand Big Drop, says: “Those of us who were early into the market, I can say modestly, have been proven right. It’s not a fad or a glitch, it’s a sector that’s seeing continued growth.”
“People prefer a pint, and that perception translates to the low and no range”
Fink believes visibility is key to sustaining momentum, and with 90%-plus of on-trade beer sales going through draught, “as a non-alcoholic beer brand, the way to sell more is to be on draught – low and no is still largely being driven by the smaller operators”. While several studies show that adding draught low and no beer and cider doesn’t impact overall sales, Fink acknowledges that the major operators will need more persuading, with new trials planned later this year.
One licensee needing no further convincing is Joel Czopor, who runs the Tichborne Arms in Alresford in Hampshire, with partner Susie Clarke. The pub offers both Big Drop Pale Ale and Lucky Saint lager on draught. Czopor says: “People prefer a pint, and that perception translates to the low and no range. Customers get visibly excited that they can have a low or no pint in the pub or sitting in our garden.
While sales of the two low and no beers don’t match those of the pub’s global beers, such as Guinness, Heineken and Birra Moretti, sales of Big Drop and Lucky Saint, at one or two kegs a week, match those of draught local and craft beers.
“I look at it in a similar way to vegan options on the menu,” says Czopor. “It’s a smaller percentage of sales, but it brings in more people. They won’t necessarily spend more money on one occasion, but they will come in more often.”
Meanwhile, the Devonshire in London is already among the first sites offering non-alcoholic Guinness on draught.
KAM Media’s research found that 44% of customers were likely to stay longer in a venue with a credible low and no range. Rob Hobart, marketing director at Peroni Nastro Azzurro 0.0% brand owner Asahi UK, says: “The real benefit of no and low is in increasing dwell time in the on-trade and prolonging occasions. Consumers are now integrating non-alcoholic drinks to prolong their experience in the on-trade, while reducing alcohol intake.”
“The stats show people who drink the most alcohol-free beer are beer drinkers”
Serena Smith, head of category, on-trade at Heineken UK, says: “The occasions people are choosing low and no beer is a factor to consider when looking at the overall drink sales mix. While early evening remains the most prevalent time for lower or non-alcoholic alternatives, we are seeing earlier parts of the day, such as lunch and mid-afternoon, proving more popular. Consider advertising your low and range during these occasions, for example within lunch deals.”
Ed Fryer, drink marketing manager for pub group Fullers, reports that with Lucky Saint on draught in almost of half of its managed estate, “the stats show people who drink the most alcohol-free beer are beer drinkers. They might be moderating or they want a night off or slightly less of a session. I’m definitely seeing that in customer behaviour in our pubs”.
In pubs that have typically replaced a craft beer with Lucky Saint, Fuller’s experience is that the original volumes largely move to the remaining kegs, making the 0.5% lager sales incremental. With selling one keg a week needed to maintain quality, “Lucky Saint was very quickly generating not just incremental sales, but selling a quantity of beer large enough to justify its place on draught on the bar,” says Fryer.
For the cider category, David Sheppy, managing director at Sheppy’s Cider, says: “Operators should focus on traditional ciders that offer drinkers the same flavour profile they expect from an alcoholic cider but with a lower abv. The innovation that the category has seen in recent years is propelling the low and no drinks market and it’s clear that consumer perception is changing.”
Moderation doesn’t have to be all or nothing. Greg Wells, co-founder of beer festival organiser We are Beer, reports that the low element of low and no is also booming. He says: “While previously there has been a concentration on alcohol-free, this year we are seeing the emergence of more low-alcohol beers.
“The growth in Radlers, essentially in posh shandies, backs this up. We saw a handful of these being brewed last year and just two at our 2023 events. This year, 10 breweries are showcasing Radlers at our festivals, and it was significant that Heineken launched its own version, Foster’s Proper Shandy, in February this year.”
Central London events venue Central Hall Westminster has refreshed its drinks list to incorporate a wider range of low and no options to be served to the delegates at the venue’s events. Created by in-house caterers Green & Fortune, the range includes several mocktails and low-alcohol cocktails. The venue also lists Heineken Zero and alcohol-free sparkling, red and white wines from Oddbird.
Rhiannon Thomas, head of sales of Central Hall Westminster, says: “Non-drinkers at events are often an after-thought, with the only options being orange juice or sparkling water. With event planners choosing our venue for a wide range of events, including graduations, fashion shows, board meetings and conferences, it’s important to have a broad drinks offer and provide the same elevated experience for everyone.”
To help meet demand, spirits market leader Diageo offers its ‘House of Zero’ range, with 0% versions of Gordon’s, Tanqueray and Captain Morgan Spiced. Kate Blake, Diageo’s senior category strategy manager alcohol free, says: “Increasing the visibility of an alcohol-free range breaks down any barriers consumers feel when having to ask for alternative options. It also ensures that a venue’s drinks range feels inclusive and accessible.”
Britvic has launched a range of J20 branded mocktails, as well as including no and low recipes in its Mix with Britvic online training hub. Adam Russell, director of foodservice and licensed at Britvic, says: “Mixed drinks like mocktails are a staple for those moderating their alcohol consumption. Not only do they ensure consumers are still provided with a whole host of interesting flavours and options, but they also ensure that they don’t feel like they must compromise on their experience and enjoyment.”
Also offering operators support with recipe suggestions is syrups specialist Monin, whose senior beverage expert Lee Hyde says: “Presentation is key when it comes to mocktails and the use of attractive glassware and garnishes can elevate the aesthetics of drinks to increase their appeal. Outlets should also make sure they publicise their no and low serves, whether that’s on social media or with a clear section on the menu, whilst putting forward food and drink pairings can also be a beneficial way to demonstrate the flavour profiles of mocktails.
Stephanie Robertson, head of experience at Restaurant Associates Group, sums up the opportunity: “Our guests are still seeking the sophisticated flavour profile that is typically associated with alcohol consumption. If customers are not excited by the offering, they will not be incentivised to return and will just stick to sparkling water – which is obviously not good from a profit point of view.
“We tend to select non-alcoholic wines that have never contained alcohol when choosing our ranges because they are made effervescent using a different method, preserving their premium taste.
“We are also looking at our own infusions of simple sugar syrups, so we can control not just the flavour but also the texture in our non-alcoholic cocktails. We use ingredients such as tea and coffee to help infuse, maintain bitterness and add a tannic structure to drinks – all of which are so important for helping to create a flavour profile similar to that of alcoholic counterparts.”
Adnams www.adnams.co.uk
Asahi www.asahibeer.co.uk
Big Drop www.bigdropbrew.com
Britvic www.britvic.com
Diageo gb.diageo-one.com
Heineken www.heineken.co.uk
Lucky Saint www.luckysaint.co
Monin www.monin1912.com
Oddbird www.oddbird.com
Sheppy’s www.sheppyscider.com
Top photo: Maksym Fesenko/Shutterstock