Table of Contents
Executive Summary
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- The Market
- Retail sales of low-/no-alcohol drinks top £100 million
- Alcohol moderation remains in the headlines
- Alcohol industry commits to provide nutrition information
- MUP comes into force in Scotland, gets delayed in Wales
- Companies and Brands
- Beck’s Blue retains top position in lager, but Heineken 0.0% is catching up fast
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- Figure 1: UK retail value sales of the leading low- and no-alcohol lager brands, 2016/17-2018/19
- Eisberg retains lead in no-alcohol wine, Black Tower takes top position in lower-alcohol segment
- Leading brewers move into beers below 0.5% ABV
- Mainstream players explore wines below 0.5% ABV
- Spirits alternatives attract the attention of larger players
- Adspend on alcohol-free beer leaps ahead
- Exercise, responsible driving and special events feature in marketing
- The Consumer
- A third of adults moderate drinks, a fifth don’t drink
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- Figure 2: Alcohol usage and reduction, April 2019
- Health considerations underpin moderation
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- Figure 3: Reasons for limiting/ reducing alcohol usage, April 2019
- Healthy variants are in demand, relaxation chimes
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- Figure 4: Attributes missing from drinks aimed at those limiting/reducing/not drinking alcohol, April 2019
- Alcohol alternatives must combat social awkwardness
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- Figure 5: Selected attitudes towards alcohol, April 2019
- No magic bullet for proving quality
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- Figure 6: Factors that signal an alcohol alternative is high quality, April 2019
- Store location of alcohol alternatives proves divisive, potential to justify alcohol-equivalent prices
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- Figure 7: Attitudes towards drinks designed as alcohol alternatives, April 2019
- What we think
Issues and Insights
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- Delivering on health is central for low-/no-alcohol variants
- The facts
- The implications
- Scope for brands to justify alcohol-equivalent prices
- The facts
- The implications
- No magic bullet for proving quality, but ingredient details and awards hold potential
- The facts
- The implications
The Market – What You Need to Know
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- Retail sales of low-/no-alcohol drinks top £100 million
- Alcohol moderation remains in the headlines
- Alcohol industry commits to provide nutrition information
- MUP comes into force in Scotland, gets delayed in Wales
Market Size and Segmentation
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- Lager takes the lead as top segment
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- Figure 8: UK retail value and volume sales of selected low- and no-alcohol drinks, 2016/17-2018/19
- Segment benefits from growing distribution
- Industry’s commitment bodes well for growth
Market Drivers
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- Government states no ‘safe’ level for drinking alcohol
- PHE spotlights alcohol under ‘One You’ and Drink Free Days campaigns
- Drink Free Days campaigns
- Growing interest in dry January
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- Figure 9: Index of Google searches for “dry January”, Veganuary, and “sober for October”, January 2016-May 2019
- New research adds to health concerns about alcohol
- Most adults see their alcohol habits as healthy
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- Figure 10: Consumers’ perceptions of the healthiness of their alcohol consumption habits, August 2018
Regulatory and Legislative Changes
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- Calls for calorie labelling on alcohol
- Self-regulatory proposal sees industry commit to provide nutrition information
- Calorie labels interest two in five drinks buyers
- Scottish government puts a new alcohol framework in place
- Alcohol Charter calls for MUP in England
- Minimum unit pricing in Scotland and Wales
- New guidance released on low-alcohol descriptors
- A freeze on most alcohol duties in the Autumn 2018 Budget
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- Figure 11: RPI index alcoholic drinks, soft drinks and all items, 2013-18
Companies and Brands – What You Need to Know
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- Beck’s Blue retains top position in lager, Heineken 0.0% grows strongly
- Eisberg retains lead in no-alcohol wine, Black Tower takes top position in lower-alcohol segment
- Leading brewers move into beers below 0.5% ABV
- Mainstream players explore wines below 0.5% ABV
- Spirits alternatives attract the attention of larger players
- Adspend on alcohol-free beer leaps ahead
- Exercise, responsible driving and key months feature in marketing
Market Share
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- Beck’s Blue retains top position in lager, but Heineken 0.0% is growing rapidly
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- Figure 12: UK retail value and volume sales of the leading low- and no-alcohol lager brands, 2016/17-2018/19
- AB InBev and Carlsberg plan further investment in low-alcohol
- BrewDog dominates low-alcohol ale
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- Figure 13: UK retail value and volume sales of the leading low- and no-alcohol ale brands, 2016/17-2018/19
- Eisberg retains the lead in no-alcohol wine
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- Figure 14: UK retail value and volume sales of the leading no-alcohol wine brands, 2016/17-2018/19
- Black Tower takes the top position in lower-alcohol wine
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- Figure 15: UK retail value and volume sales of the leading alcohol wine brands with ABV of 0.06-5.5%, 2016/17-2018/19
- Seedlip’s growing distribution gives visibility to spirits alternatives
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- Figure 16: UK retail value and volume sales of the leading spirits alternatives brands, 2017/18 and 2018/19
Start-ups and Disruptors Case Study – Botonique
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- Company overview
- What is it?
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- Figure 17: Example of Botonique drink, February 2019
- Founded:
- Company mission statement:
- Founder’s Story:
- Sources of funding and support:
- Mintel Analyst View
- Mintel Trends
- Why it could succeed
- Why it could fail
- The verdict
- Product information
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- Figure 18: Botonique product images, June 2016-2019
- Figure 19: Botonique, June 2016-2019
- Product stockists
- Media profile
- Social media metrics
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- Figure 20: Social media metrics for Botonique as of July 2019
Start-ups and Disruptors Case Study – Caleño
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- Company Overview
- Website
- What is it?
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- Figure 21: Example of Caleño product, October 2018
- Founder’s Story:
- Sources of funding and support:
- Mintel Analyst View
- Mintel Trends
- Why it could succeed
- Why it could fail
- The verdict
- Product information
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- Figure 22: Caleño product image, October 2018
- Figure 23: Caleño product offering, July 2019
- Product stockists
- Media Profile
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- Figure 24: Social media metrics for Caleño as of July 2019
Start-ups and Disruptors Case Study – Everleaf
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- Company overview
- What is it?
- Website:
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- Figure 25: Everleaf, January 2019
- Founded:
- Founder’s Story:
- Sources of funding and support:
- Mintel analyst View
- Mintel Trends
- Why it could succeed
- Why it could fail
- The verdict
- Product information
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- Figure 26: Everleaf, January 2019
- Product stockists
- Media profile
- Social media metrics
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- Figure 27: Social media metrics for Everleaf as of June 2019
Start-ups and Disruptors Case Study – Stryyk
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- Company Overview
- Website:
- What is it?
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- Figure 28: Example of Stryyk Drink, July 2019
- Founded:
- Company mission statement:
- Founder’s story:
- Sources of funding and support:
- Mintel Analyst View
- Mintel Trends
- Why it could succeed
- Why it could fail
- The verdict
- Product information
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- Figure 29: Stryyk product images, July 2019
- Figure 30: Stryyk product launches, October 2018-July 2019
- Product stockists
- Media profile
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- Figure 31: Social media figures for Stryyk, July 2019
Launch Activity and Innovation
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- Low-/no-alcohol beer attracts leading brands and specialists alike
- Established brewers move into beers below 0.5% ABV…
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- Figure 32: Examples of established beer brands’ 0.5% ABV beers, 2018-19
- …and into beer up to 3.5%
- The low-alcohol beer space attracts specialists…
- …and flavoured beers
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- Figure 33: Examples of smaller brands’ lower-alcohol beers, 2018-19
- Low-/no-alcohol wine sees interest from grocers and mainstream players
- Various grocers expand their ranges
- Mainstream players explore wines below 0.5% ABV
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- Figure 34: Examples of mainstream players’ lower-alcohol wines, 2018-19
- The space also attracts specialists
- Wine alternatives
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- Figure 35: Examples of specialists’ lower-alcohol wines and wine alternatives, 2017-19
- Gordon’s and Bloom launch RTDs
- No-alcohol spirits attract the attention of larger players
- Leading drinks groups explore the space…
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- Figure 36: Examples of no-alcohol spirits, 2018-19
- ...while it also draws in smaller operators
Advertising and Marketing Activity
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- Adspend on alcohol-free beer leaps ahead
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- Figure 37: Total above-the-line, online display and direct mail advertising expenditure on alcohol-free wine, beer and cider, 2015-19
- Heineken supports 0.0 variant with “Now You Can”
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- Figure 38: Total above-the-line, online display and direct mail advertising expenditure on alcohol-free wine, beer and cider, by brand, 2015-19
- Heineken and Seedlip promote responsible driving
- San Miguel and Michelob Ultra link with exercise in 2019 campaign
- Heineken’s “Say Yes” campaign spotlights alcohol-free drinks as a positive choice, Diageo promotes Weekend not Wasted
- AB InBev uses 'dry January' to promote Budweiser Prohibition beer
- AB InBev supports Bud Light with Dilly Dilly creative in 2018
- Sainsbury’s launches a pop-up pub serving low- and non-alcoholic drinks
- Diageo supports responsible drinking on social media
- Nielsen Ad Intel coverage
The Consumer – What You Need to Know
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- A third of adults moderate drinks, a fifth don’t drink
- Health considerations underpin moderation
- Healthy variants are in demand
- Relaxation chimes widely
- Alcohol alternatives must combat social awkwardness
- No magic bullet for proving quality
- Store location of alcohol alternatives proves divisive
- Strong potential for brands to justify alcohol-equivalent prices
Alcohol Usage and Reduction
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- A third of adults moderate drinks, a fifth don’t drink
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- Figure 39: Alcohol usage and reduction, April 2019
Reasons for Limiting/Reducing Alcohol Intake
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- Health considerations underpin moderation
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- Figure 40: Reasons for limiting/ reducing alcohol usage, April 2019
- Help people track improvements and calories saved
- A third of reducers are looking to save money
- Reasons for not drinking are fragmented
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- Figure 41: Reasons for not drinking alcohol, April 2019
Usage of Selected Low- and No-alcohol Drinks
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- One in four have drunk low/lower-alcohol drinks
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- Figure 42: Alcohol drinkers’ usage of low- and no-alcohol beer, cider, wine and pre-mixed drinks, April 2019
- Few non-drinkers use alcohol-free variants
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- Figure 43: Non-drinkers’ usage of non-alcoholic/alcohol-free beer, cider, wine and pre-mixed drinks, April 2019
White Spaces for Drinks Targeting Moderators/Non-drinkers
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- Healthy variants are in demand
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- Figure 44: Attributes missing from drinks aimed at those limiting/reducing/not drinking alcohol, April 2019
- Relaxation chimes widely
- A role for herbs
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- Figure 45: Selected soft drinks referencing relaxation on-pack, 2018
- Opportunities for CBD
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- Figure 46: Selected drinks referencing CBD on-pack, 2018-19
- Driving refreshing image warrants further attention
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- Figure 47: Fruit and berry-flavoured CSDs with mint, 2017-18
Selected Attitudes towards Alcohol
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- Alcohol alternatives must combat social awkwardness
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- Figure 48: Selected attitudes towards alcohol, April 2019
- Compelling flavour offers a strong selling point
Assurances that Signal an Alcohol Alternative is High Quality
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- No magic bullet for proving quality
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- Figure 49: Factors that signal an alcohol alternative is high quality, April 2019
- Ingredient provenance offers a quality signal
- Ingredient provenance is widely established as a premium cue…
- …and chimes also for alcohol alternatives
- Alcohol-style ingredients have a role to play
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- Figure 50: Low- and non-alcoholic drinks calling out ingredient details, 2018
- Limited interest in processes
- Award schemes can help the industry boost its quality image
Attitudes towards Drinks Designed as Alcohol Alternatives
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- Store location of alcohol alternatives proves divisive
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- Figure 51: Attitudes towards drinks designed as alcohol alternatives, April 2019
- Strong potential for brands to justify alcohol-equivalent prices
- Competitive pricing is widely expected…
- …but there is a clear opportunity for products priced on a par with alcohol equivalents
Appendix – Data Sources, Abbreviations and Supporting Information
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- Abbreviations
- Consumer research methodology
Appendix – Market Drivers
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- Figure 52: Alcohol Duty rates, from 1 February 2019
- 2018 guidance on low-alcohol descriptors
- Exceptions
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Appendix – Market Share
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- Figure 53: UK retail value and volume sales of the leading low- and no-alcohol lager brand owners/distributors, 2016/17-2018/19
- Figure 54: UK retail value and volume sales of the leading low- and no-alcohol brewers, 2016/17-2018/19
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- Figure 55: UK retail value and volume sales of the leading no-alcohol wine brand owners, 2016/17-2018/19
- Figure 56: UK retail value and volume sales of the leading alcohol wine brand with ABV of 0.06-5.5% owners, 2016/17-2018/19
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