Table of Contents
Overview
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- What you need to know
- Products covered in this Report
Executive Summary
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- The market
- New guidelines and evidence of moderation in drinking
- Calories in spotlight due to focus on weight management
- Alcoholic drinks prices expected to rise in 2017
- Rate of growth in number of Millennials slowing down
- Household budgets to come under pressure in 2017
- Companies and brands
- Choice of alcohol-free beers expanding
- More new low-alcohol variants from wine brands
- Eisberg extends alcohol-free range
- Belvoir looking to emulate wine
- Tesco expanding range of low-/no-alcohol drinks
- The consumer
- Strong evidence of moderation in drinking
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- Figure 1: Limiting or reducing the amount of alcohol drunk in the last 12 months, November 2016
- Cutting back to save money, manage weight and improve health
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- Figure 2: Reasons for limiting/reducing the amount of alcohol drunk in the last 12 months, November 2016
- Out-of-home occasions most important for low-alcohol drinks
- A quarter of drinkers drink low-alcoholic beer, cider or wine
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- Figure 3: Usage of beer, cider and wine in the last 6 months, by standard and lower alcohol content, November 2016
- Taste the biggest barrier to higher take-up
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- Figure 4: Factors that would encourage the drinking of low-alcohol or non-alcoholic/alcohol-free drinks, November 2016
- Mixing alcohol and soft drinks a popular way of drinking less
- What we think
Issues and Insights
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- Increasing moderation of alcohol consumption presents opportunities for low-alcohol and alcohol-free drinks
- The facts
- The implications
- Demonstrating improvements to taste and widening availability will help overcome the biggest barriers to consumer take-up
- The facts
- The implications
- Highlighting low calorie content compared to standard-strength alcoholic drinks offers scope for increasing sales to over-55s
- The facts
- The implications
The Market – What You Need to Know
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- New guidelines on alcohol consumption
- Evidence of moderation in drinking alcohol
- Calories in drink coming under the spotlight
- Alcoholic drinks prices expected to increase in 2017
- Rate of growth in number of Millennials slowing down
- More over-55s unlikely to benefit low-alcohol and alcohol-free sales
- Tightening of household budgets expected
Market Drivers
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- New alcohol guidelines put focus on limits for low health risks
- Strong evidence of increasing moderation in drinking
- Weight management puts calories in drinks in the spotlight
- Lower-ABV drinks enjoy lower duty
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- Figure 5: Duty on beer per litre per, by type and alcohol strength, March 2016
- Figure 6: Duty on cider per litre, by type and alcohol strength, March 2016
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- Figure 7: Duty on wine per litre, by type and alcohol strength, March 2016
- Beer and wine prices fall in 2015 and 2016
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- Figure 8: CPI price indices – all items, beer and wine, 2006-16
- More over-55s unlikely to benefit low-alcohol and alcohol-free sales
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- Figure 9: Trends in the age structure of the UK population, 2011-21
- Spectre of tighter household budgets poses a threat to drinks
- Putting the focus on responsible drinking
Companies and Brands – What You Need to Know
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- More alcohol-free beers from major brands
- Alcohol-free also being seen in craft beers
- More flavoured low-alcohol beers
- New low-alcohol variants from wine brands
- Alcohol-free specialist Eisberg extends range
- Belvoir looking to emulate wine
- Tesco launching largest ever range of low-/no-alcohol drinks
Launch Activity and Innovation
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- Focus on responsible drinking with alcohol-free lager
- AB InBev launches Becks Blue Lemon as part of Smart Drinking Goals
- Carlsberg goes alcohol-free with San Miguel and Carlsberg
- Alcohol-free also being seen in craft beers
- Beer with added ingredients for “detoxing”
- More flavoured low-alcohol beers with fruit flavours
- Wines focus on flavours and low calories
- New low-alcohol variants from wine brands
- Alcohol-free specialist Eisberg grows its range
- Smaller brands enter the fray
- Belvoir looks to emulate wine
- Tesco to stock more choice of low-/no-alcohol drinks
- Magners extends into alcohol-free ciders
The Consumer – What You Need to Know
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- A fifth of people are teetotal
- Strong evidence of moderation in drinking
- Focus on being healthier also hitting alcohol consumption
- Out-of-home occasions most important for low-alcohol drinks
- Non-alcoholic/alcohol-free versions a less popular alternative
- A quarter of drinkers drink low-alcoholic beer, cider or wine
- Taste still biggest barrier to higher take-up
- Being cheaper or having fewer calories can increase appeal
- Mixing alcohol and soft drinks a popular way of drinking less
- More attention given to ABV than calories
Limiting or Reducing Drinking Alcohol
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- A fifth of people don’t drink alcohol
- Strong evidence of moderation in alcohol consumption
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- Figure 10: Limiting or reducing the amount of alcohol drunk in the last 12 months, November 2016
- Saving money a major reason for cutting back on alcohol
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- Figure 11: Reasons for limiting/reducing the amount of alcohol drunk in the last 12 months, November 2016
- Reducing alcohol to manage weight and benefit health
- Drawing attention to reduced calories, not just alcohol, has scope to chime
- Health considerations are a key driver for over-55s
- Linking non-alcoholic drinks to dry campaigns
- Two thirds have more than one reason for drinking less
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- Figure 12: Number of reasons for limiting/reducing the amount of alcohol drunk in the last 12 months, November 2016
Choice of Drinks on Different Occasions When Limiting or Reducing Drinking Alcohol
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- Out-of-home occasions more important for low-alcohol drinks
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- Figure 13: Drinks people would be most likely to drink on different occasions when limiting alcohol intake, November 2016
- Smaller numbers opt for non-alcoholic/alcohol-free versions
- Soft drinks most popular alternative to drinking alcohol
- Older consumers more likely to opt for hot drinks
Knowledge of Guidelines on Alcohol Consumption Limits
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- Most people don’t know the advice on weekly alcohol limits
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- Figure 14: Units of alcohol per week consumers think NHS/government guidelines recommend as a limit for men and women, November 2016
Usage of Different Types of Beer, Cider and Wine
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- A quarter of drinkers drink lower-alcohol beer, cider or wine…
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- Figure 15: Usage of standard, lower-alcohol and non-alcoholic drinks*, November 2016
- …but penetration dwarfed by usage of standard-strength products
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- Figure 16: Usage of beer, cider and wine in the last 6 months, by standard and lower alcohol content, November 2016
- Lower-alcohol wine grows usage
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- Figure 17: Usage of lower-alcohol and non-alcoholic/alcohol-free drinks as a proportion of total category users, November 2016
- Little change in usage of lower-alcohol and alcohol-free beers
Factors That Would Encourage Drinking of Low-Alcohol or Non-Alcoholic/Alcohol-free Drinks
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- 45% of people could be swayed to low-/non-alcoholic drinks
- Taste is biggest barrier to higher take-up
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- Figure 18: Factors that would encourage the drinking of low-alcohol or non-alcoholic/alcohol-free drinks, November 2016
- Emphasising being cheaper would encourage a fifth to drink
- Fewer calories another attribute that can be promoted
- Increased availability and visibility could also help sales
Behaviour and Preferences in Relation to Drinking Alcohol
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- Targeting those who prefer the taste of alcoholic drinks
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- Figure 19: Behaviour and preferences related to drinking alcohol, November 2016
- Strong signs of people moderating their drinking
- Mixing alcohol with soft drinks popular
- Need for ABV to be prominent on packaging and bars
- Calorie content less of a consideration than ABV
Appendix – Data Sources, Abbreviations and Supporting Information
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- Abbreviations
- Consumer research methodology
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