Table of Contents
Introduction
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- Definitions
- Abbreviations
Executive Summary
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- The market
- Market factors
- The consumer
- Low/non-alcoholic drinks achieve only limited penetration
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- Figure 1: Usage of types of alcoholic drinks in the past six months, February 2015
- Soft drinks dominate when standard-strength drinks are not desired
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- Figure 2: Preferred alternatives to standard-strength alcoholic drinks on different occasions, February 2015
- Many consumers have realistic expectations of calorie contents of their drinks
- Lower-alcohol drinks suffer from some unfavourable associations
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- Figure 3: Qualities associated with low/non-alcoholic drinks, February 2015
- Lower-alcohol drinks must compete harder on cost and taste
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- Figure 4: Attitudes towards low/non-alcoholic drinks, February 2015
- What we think
Issues and Insights
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- Managing expectations of saving money on low/non-alcoholic drinks
- The facts
- The implications
- Winning over older drinkers
- The facts
- The implications
- Competing more efficiently with soft drinks
- The facts
- The implications
- Following in German footsteps
- The facts
- The implications
Trend Application
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- Help Me Help Myself
- Extend My Brand
- Generation Next
Market Drivers
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- Key points
- UK consumers continue to cut back on alcohol
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- Figure 5: Trends in UK per capita consumption of 100% alcohol, 2006-14
- Reducing the Strength scheme
- Alcoholic drink prices continue to rise
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- Figure 6: RPI indexed annual change for alcoholic drink prices versus all items except housing, 2000-14
- Figure 7: How consumers describe their financial situation, February 2015
- Changes to taxes on alcoholic drinks
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- Figure 8: Excise duty rates and tax on a pint of beer at different strengths, as per 2015 Budget
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- Figure 9: Excise duty rates on a pint of cider at different strengths, as per 2015 Budget
- Figure 10: Excise duty rates on 750ml bottles of wines at different strengths, as per 2015 Budget
- An ageing population could pose a threat to lower/non-alcoholic drinks
Strengths and Weaknesses
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- Strengths
- Weaknesses
Who’s Innovating?
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- Beer dominates lower-alcohol NPD activity
- Wine’s lack of lower-alcohol NPD appears to be impacting on sales
- International inspiration
Market Performance
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- Key points
- Lower-alcohol wines gain marginal traction
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- Figure 11: Off-trade value and volume sales of still & sparkling wines under 5.6% ABV and beers under 2.9% ABV, 2012-14
- Lower-alcohol beer showing encouraging signs of growth
The Consumer – Usage of Alcoholic Drinks
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- Key points
- Low/non-alcoholic drinks achieve only limited penetration
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- Figure 12: Usage of types of alcoholic drinks in the past six months, February 2015
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- Figure 13: Usage of low/non-alcoholic drinks as a proportion of total category users, February 2015
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- Figure 14: Repertoire of usage of types of low/non-alcoholic drinks in the past six months, February 2015
- Still wine fares poorly in the lower-alcohol segment
- Three in 10 users of lower-alcohol drinks are increasing their usage
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- Figure 15: Usage of low/non-alcoholic drinks, February 2015
The Consumer – Occasions for Consumption
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- Key points
- Standard-strength alcoholic drinks are popular in and out of home
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- Figure 16: Occasions for drinking standard-strength alcoholic drinks, February 2015
- Soft drinks dominate when standard-strength drinks are not available
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- Figure 17: Preferred alternatives to standard-strength alcoholic drinks on different occasions, February 2015
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- Figure 18: Combined preference for low/non-alcoholic drinks as alternatives to standard-strength alcoholic drinks on different occasions, February 2015
- Low-alcohol drinks could thrive in the on-trade
- Tapping into more niche occasions
The Consumer – Perceptions of Calories in Alcoholic Drinks
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- Key points
- Consumers have realistic expectations of calorie contents of beer
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- Figure 19: Perceptions of the calorie content of a pint of beer (568ml), by strength, February 2015
- Many drinkers overestimate wine’s calorie content
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- Figure 20: Perceptions of the calorie content of a large glass of wine (250ml), by strength, February 2015
The Consumer – Perceptions of Low/non-alcoholic Drinks
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- Key points
- Lower-alcohol drinks suffer from some unfavourable associations
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- Figure 21: Perceptions of low/non-alcoholic drinks, February 2015
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- Figure 22: Perceptions of low/non-alcoholic drinks, by gender, February 2015
- Millennials emerge as the advocates
The Consumer – Attitudes towards Low/non-alcoholic Drinks
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- Key points
- Summary of attitudes towards low/non-alcoholic drinks
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- Figure 23: Attitudes towards low/non-alcoholic drinks, February 2015
- Reduced alcohol drinks struggle to compete against soft drinks
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- Figure 24: Attitudes towards the health credentials of low/non-alcoholic drinks, February 2015
- Winning over the taste sceptics
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- Figure 25: Attitudes towards the taste of low/non-alcoholic drinks, February 2015
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- Figure 26: Attitudes towards low/non-alcoholic drinks with significant differences, by gender, February 2015
- Cost is a barrier to market growth
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- Figure 27: Prices of selected alcoholic drinks, 10 March 2015 (excludes promotional prices)
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- Figure 28: Attitudes towards the image and cost of low/non-alcoholic drinks, February 2015
- Improved visibility could boost the market’s fortunes
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- Figure 29: Attitudes towards the availability of low/non-alcoholic drinks, February 2015
The Consumer – Target Groups
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- Key points
- Four target groups
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- Figure 30: Target groups, February 2015
- Sceptics (29%)
- Disengaged (29%)
- Health-aware (23%)
- Lower-alcohol Fans (19%)
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