Low- and no-alcohol drinks may seem like a drop in the ocean, but the category is growing fast. John Porter grabs the opportunity

Sometimes, the fiercest battles are fought over the smallest of victories. On the face of it, the huge investment in new product development and brand support going into the low- and no-alcohol sector barely seems worth the resources the drinks industry is devoting to it.

In the on-trade, CGA figures for the year to the end of September 2023 show that the low- and no-alcohol category accounted for just 0.6% of drink sales by both value and volume, with the figures covering beer, cider, wine, spirits and ready to drink beverages. In itself that seems barely worth the bother, but the drinks players can clearly scent growth.

The low- and no-alcohol category only accounted for 0.3% of on-trade drinks sales in the year to March 2023, so it effectively doubled in just six months, across a period when there was no Dry January or Stoptober campaigns to encourage abstinence. Add to that a continuing demographic shift, with studies showing younger consumers are cutting back or cutting out alcohol, and the fact that offering low- and no-alcohol brands gives the drinks industry a counter-argument to calls for stricter alcohol legislation, the appeal of continued investment is even clearer.

Asahi Europe & International, which supplies brands including Peroni Nastro Azzurro 0.0%, has stated that it aims for 20% of its product portfolio to be non-alcoholic by 2030. Heineken is putting 25% of brand investment into the alcohol-free category, with the aim of making Heineken 0.0 the world’s largest non-alcoholic beer brand.

Paul Bolton, client director, GB Drinks for CGA by NIQ, says: “The low- and no-alcohol market category continues to be one of the stand-out performers in the on-trade. An explosion of line extensions have driven this, as the choice for consumers has widened beyond the traditional soft drink choice or perhaps one dusty brand in the fridge.”

Piece of the pie

Rob Fink, founder and managing director of no-alcohol brewer Big Drop, believes that “10% of on-trade beer volumes seems to be a perfectly sensible number to be gunning for over the next three to five years. That transition will take time, and the consumer needs to be educated and given good options, but I think that’s where we should end up.”

The typical Big Drop customer is a “moderator rather than abstainer”, says Fink, likely to have a non-alcoholic beer once or twice during a session. Although Big Drop on draught has performed well in independents and small pub groups, “what needs to happen is for a big pubco to stick their head above the parapet and put it on draught. That would be the game-changer – that you can go into a pub and order a pint of Guinness alongside a pint of Big Drop.”

Molson Coors Beverage Company has launched Staropramen 0.0 and a reformulated Cobra Zero this year. Stephen Groucott, on-trade sales director says: “While there are more zero-alcohol options available than ever before, consumers want drinks that still truly deliver on flavour. To help venues capitalise on this growing trend, our portfolio offers zero-alcohol options in lager with Cobra Zero and Staropramen 0.0, ale with Doom Bar Zero, and cider with Rekorderlig Alcohol Free.”

Range rover

Matt Towe, head of Bidfood’s Unity wines, beers and spirits arm, makes the point that water is still the top choice cited by consumers who are limiting alcohol consumption. “Operators need to up their game by offering variety and choice. As well as having a very similar taste profile to its alcoholic counterpart, low- and no-alcohol beer is also cheaper than alcoholic versions. Fortunately, most major beer brands like Heineken, Becks Blue and Peroni offer a no-alcohol option to their mainstream range. There are also some fantastic low-alcohol ready to drink cocktail options and brands, such as Savyll.”

Towe also points to the growing popularity of Radlers, the European low-alcohol fruit-flavoured beer. This trend prompted Budvar, the state-owned Czech brewer, to launch 0.3% Budvar Lime in the UK earlier this year, with a range of pubs and taprooms now stocking the brand.

Budvar UK national sales director Rich Sanna says Budvar Lime spearheads a new flavoured low- and no-alcohol beer category alongside brands such as Schöfferhofer and Erdinger Grapefruit: “We saw the success of this category in the Czech Republic and identified an opportunity in the UK. As consumers are increasingly choosing low-alcohol options, there is a desire to explore an alternative to the typical mainstream non-alcoholic beer.”

Artisan Hand Crafted Cocktails, which serves premium draught cocktails at stadia and concert venues, added Pineapple Tiki Tonic and Pink Grapefruit Sipper non-alcoholic mocktails to its range this summer, with success at locations such as the London Stadium in Stratford.

Louise Moore, who heads up UK sales for the business, says: “It’s vital that people who don’t drink alcohol, either through circumstance or choice, have a viable option and something that isn’t a standard fizzy drink. You can buy an orange juice or a cola straight off the shelf, so it’s about finding flavours that offer something a little bit different.

“The customer response has been positive so far. It’s still a fairly new concept, and you’re not going to command as much as for an alcoholic cocktail, but there’s a clear shift in the market.”

That’s the spirit

Mindful drinking specialist Club Soda is moving into wholesaling, offering operators and event organisers mixed consignments of product to cover the full alcohol-free range. Founder Laura Willoughby says: “Most wholesalers supplying events venues and caterers have a very small and generally relatively poor range of alcohol-free options. Events of all kinds are now expected to cater for a diverse guest list and give everyone an equal experience. A simple, quality alcohol-free option is better than trying to provide too much, or a poor-quality mocktail of juices smashed together.”

Tom Ward, founder of specialist online alcohol-free trade supplier Wise Bar Trader, says: “The initial wave of growth in alcohol-free drinks was driven by innovation in the beer category, but there have been big steps in the range of options for alcohol-free wine, cider and whisky. Any consumer occasion should be seen as an opportunity to maximise sales of low- and no-alcohol drinks, and a good range can help establish your venue as a must-visit among the non-drinkers who influence group decisions.”

Hugo Norman, co-founder of non-alcoholic canned cocktail brand Mavrik Drinks, says: “As with alcoholic beverages, beer has a significant male slant and consumers are looking for a full range of non-alcoholic alternatives, including ciders, wines, cocktails and functional drinks.”

In order for venues to promote the low-alcohol offering, Norman advises to put the range on the menu and educate bar staff. He adds that operators should make sure drinks are served properly at the correct temperature, and in the right glasses and with the correct garnish, where appropriate.

Club Soda’s events advice

Laura Willoughby of Club Soda, which runs a no-alcohol bar in London, offers some rules for putting on a party

“Get the invitation right. Don’t just say there are drinks, as this is read as alcohol. Say there will be drinks for everyone – alcoholic and alcohol-free.

“Those not drinking alcohol often have to hunt for options at an event, whereas alcohol is served on entry and endlessly topped up. If you have a welcome tray of drinks, there should be a clearly signposted alcohol-free tray. If it looks like alcohol, those looking for non-alcoholic options won’t pick it up. As an example, the British Film Institute puts a raspberry in its alcohol-free fizz at events so they know which glasses to top up with which serve.

“When drinks are placed on tables for dinner, alcohol-free options should be present and served in the same way.

“The better your alcohol-free option, the more people will drink it, as those moderating would prefer to have a few drinks rather than nurse one glass of alcohol for the whole evening.

“Don’t skimp. Bottles of alcohol-free wine, beer and soft drinks all last, so leftover products can be used for the next event.”

Case Study: Clermont Hotel Group

With a London portfolio that includes the Royal Horseguards hotel, the Clermont, Thistle and the Tower hotel, Clermont Hotel Group has developed low- and no-alcoholic drinks options “to make sure we not only deliver an inclusive experience, but a quality one”, says Aline Peters, marketing manager.

For Christmas 2023 the group has added two new mocktails to its festive menu: ‘Santa’s Passion’, made with Fever-Tree lemonade, lime juice and raspberry syrup, and ‘Rudolph’s Treat’, with Fever-Tree ginger ale, lemon and lime soda and grenadine.

“We ensure that low- and no-alcohol offerings are available year-round,” says Peters. “Guests are more likely to lean into non-alcoholic cocktail options they recognise. Across our hotel bars, we offer classic serves without the alcohol, such as a virgin passion fruit Martini, virgin Mojito and virgin Daiquiri. “By providing non-alcoholic options we create an inclusive environment where all our guests, regardless of their alcohol consumption preferences, can feel comfortable, welcome and valued.”

Suppliers

Artisan Hand Crafted Cocktails www.artisanhandcraftedcocktails.com

Asahi UK www.asahibeer.co.uk

Big Drop www.bigdropbrew.com

Budvar UK www.budweiserbudvar.com/uk

Club Soda www.joinclubsoda.com

Erdinger uk.erdinger.de/

Fever-Tree www.fever-tree.com

Heineken UK www.heineken.co.uk

Molson Coors Brewing Company www.molsoncoors.com/">www.molsoncoors.com

Mavrik Drinks www.mavrik-drinks.com

Unity Wines, Beers & Spirits www.bidfood.co.uk

Wise Bar Trader wisebartrader.co.uk