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BUYERS' GUIDE TO Drinks Retailing 2019 - Drinks Retailing News
DrinksRetailing
                                                      NEWS

                                        BUYERS’ GUIDE TO

                                        2019

001 Cover DRN Mindful Nov 2019.indd 1                        06/11/2019 13:48
BUYERS' GUIDE TO Drinks Retailing 2019 - Drinks Retailing News
BUYERS' GUIDE TO Drinks Retailing 2019 - Drinks Retailing News
BUYERS’ GUIDE TO MINDFUL DRINKING 2019 www.drinksretailingnews.co.uk                                                 DrinksRetailingNEWS 3

         COMMENT

         MINDFULNESS
         IS HERE FOR
         GOOD REASON
         Drinks retailers that have noticed sliding sales of beers, wines
         and spirits might be inclined to lament the chasteness of those
         pesky millennial and generation Z consumers. “Why aren’t they
         binge-drinking like their forebears?” they may ask. “And what,
         pray tell, is a protein ball?”
            It is easy to blame antipathy among younger shoppers for
         declining volume sales within BWS: two-fifths of Brits aged
         18-24 either do not drink or are trying to moderate their
         alcohol consumption, according to Kantar. However, it is really
         interesting to note that the largest group of teetotallers in
         Britain are women aged 50 and above. They account for a third

                                                                              Contents
         of all people shunning alcohol.
            That illustrates just how important it is for retailers to
         embrace the trend for mindful drinking, as demand is coming
         from both ends of the spectrum and it is growing each year.
         When we say mindful drinking, we really mean moderating
         alcohol consumption. This can take the form of drinking
         less but drinking better quality, and primarily it focuses on
                                                                              5     27STATISTICS
                                                                                      How the category fared this
                                                                                      year – the figures behind
                                                                                                                               KOMBUCHA
                                                                                                                               The fermented tea drink is
                                                                                                                               finding favour in the on-trade –
         championing low and no-alcohol alternatives.                                 the trends                               the off-trade is next
            The craze for mindfulness continues to permeate every facet
         of British life. Mindful eating is all about chewing slowly and
         enjoying the taste and texture of every mouthful, rather than
         just shovelling in food. There is even mindful sex – it involves
                                                                              6       BEHIND THE NUMBERS
                                                                                      Why consumers are prepared
                                                                                      to pay more for products that
                                                                                                                          28   WINE
                                                                                                                               Why lower-alcohol versions
                                                                                                                               need to up their game when it
         meditation, sensual stories, massage candles, sex toys, calorie              meet certain criteria                    comes to quality
         counting and, ahem, fur oil, according to The Sunday Times.
            Some of this noise is easy to dismiss, but mindfulness really
         focuses on making decisions to lead a lifestyle that is better for
         the wellness of your body and mind. This is important because
                                                                              8       CLARIFYING TERMINOLOGY
                                                                                      There are calls for definitions
                                                                                      around abv to be made clearer
                                                                                                                          30   LIGHTER WINE
                                                                                                                               The producers pioneering a
                                                                                                                               way of keeping texture and
         people are living longer in a digitally enabled world, with reams            on labelling                             flavour at lower abv
         of educational material on wellness at their fingertips.
            People do not want the quality of their long lives to be
         diminished. The challenge for producers and retailers is to
         present drinks that are lower in alcohol or free of alcohol,
                                                                              10      ROUNDTABLE
                                                                                      DRN’s team of experts discuss
                                                                                      the importance of making the
                                                                                                                          31   DRINKAWARE
                                                                                                                               Retailers and consumers alike
                                                                                                                               are inspired by the latest
         but that also taste great and look great. They really should be              category more cohesive                   campaign
         presented in environmentally friendly packaging too.
            Beers, wines and spirits have always flourished on the back
         of creating a sense of belonging, serving as the glue that holds
         social situations together. Now the challenge is to replicate
                                                                              16      LOW-ALCOHOL BEER
                                                                                      It’s the sector that’s being held
                                                                                      up as the role model for others
                                                                                                                          32   BUYERS
                                                                                                                               The people who decide what
                                                                                                                               products are best are bravely
         that with high-quality alternatives that remove the harm and                 moving forward                           working together
         hassle from packaging, and benefit shoppers’ health rather
         than put it at risk, while adding excitement, Instagrammability,
         personalisation and customisation. If retailers can crack this
         trend, the sector should enjoy a long and healthy future.
                                                                              24      ALCOHOL-FREE SPIRITS
                                                                                      In a burgeoning sector,
                                                                                      producers are focusing on NPD
                                                                                                                          34   MERCHANDISING
                                                                                                                               Producers and retailers give
                                                                                                                               some useful insight into
         Martin Green, editor                                                         with benefits                            ranging in-store

                                                            Editor            Commercial director                                 Drinks Retailing News is circulated to
                                                                                                                                  business owners and buyers across
                                                         MARTIN GREEN         SAMANTHA HALLIDAY               SUBSCRIPTION        all channels of the UK off-trade –
                                                                                                                                  championing the off-trade since 1863.
                                                                                                                 HOTLINE:
                                                                                                                                  Visit www.drinksetailingnews.co.uk or
           Longley House, International Drive,                                                                 01371 853630
                                                         Deputy Editor         Account manager                                    follow us on Twitter @DrinksRetailing .
            Southgate Avenue, Crawley, West
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               www.drinksretailingnews.co.uk                 Art director          Publisher                                      0043-5775 ©Agile Media Ltd.
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003 Contents DRN Mindful Nov 2019 SUBBED CORRECTED.indd 3                                                                                                               06/11/2019 14:52
BUYERS' GUIDE TO Drinks Retailing 2019 - Drinks Retailing News
BUYERS' GUIDE TO Drinks Retailing 2019 - Drinks Retailing News
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           ANALYSIS: STATISTICS

         MAIN FIGURES
         AT A GLANCE
         A visual guide to how the numbers stack up for low and no-alcohol

                                                                                                               0.7%
                                                  £22.4
                                                                                                              no and low-alcohol alternatives

            £116.6                                                              £202
                                                                                                            represent just a fraction of the BWS
                                                                                                                          category

                                                   MILLION
             MILLION                            growth in the no and low-       MILLION
            the value of the no and low-       alcohol BWS category over      the value of the adult soft
              alcohol BWS category                   the past year                 drinks category

                                                                             2% just one in 50
                                                                            shoppers of alcohol-
                                                                            free BWS have never
                                                                              consumed alcohol

         20.4%
           proportion of Brits who say they are
         teetotal, including 22.6% of women and
                                                                                                            4,000
                                                                                                             the approximate number of press
                        18.1% of men                                                                           releases DRN receives per day
         SOURCES: NIELSEN, KANTAR, ONS                                                                      announcing new alcohol-free drinks

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BUYERS' GUIDE TO Drinks Retailing 2019 - Drinks Retailing News
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          ANALYSIS: RESEARCH

              BREAKING DOWN
              THE STATISTICS
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                             Research by Kantar shows that consumers are prepared to pay a premium for products that fit a
                             particular set of mindful credentials. By Martin Green

                               T
                                                  he no and low-alcohol    bottle entirely made of paper. Refillables
                                                  category has seized      are becoming more prominent in
                                                  £71 million in shopper   supermarkets.
                                                  spend from BWS over          “Low and no can offer a lot of flavour.
                                                  the past year,
                                                  according to Kantar
                                                                           It can offer the experience of having an
                                                                           alcoholic drink, but being either low or
                                                                                                                           Low and no can offer a lot
                             data. Andy Crossan, alcohol insight           no-alcohol. It fits well into the conscious     of flavour. It can offer the
                             director at the research firm, addressed a
                             room of mindful drinking enthusiasts at a
                                                                           consumer element. Consciousness will
                                                                           continue to be a driving force for the
                                                                                                                           experience of having an
                             recent Kiasco Research summit on the          2020 consumer.                                  alcoholic drink, but being
                             topic. He reports that only 2% of people          “Consciousness goes hand in hand with       either low or no-alcohol
                             who bought no and low-alcohol drinks          health. On average we are willing to spend
                             over the past year were previously            17p more on a meal when it hits that
                             teetotal.                                     health credential. If it can market itself      he adds, highlighting an opportunity for
                                “It’s very rare that people move from      and touch upon enjoyment, practicality          retailers and for producers such as Big
                             outside the BWS sector into low and           and health then a premium is really             Drop and Small Beer.
                             no alcohol,” he says. “We know that it’s      justified. One example is Nakd bars, which         “Spirits at 0% has been a real key
                             younger drinkers who are more likely to       sell at a premium of 25% more than your         differentiator in the market. It has found
                             dabble in low and no.                         average chocolate bar, despite being 40%        a good niche to go after and is reaping the
                                “It has done well among young and          lighter in weight.                              benefits of it,” he says.
                             affluent consumers.                               “We can see the parallels you can              Crossan adds that the wine trade
                                “For the younger generation, it’s          draw from no and low. Justifying a              can learn a lot from spirits when it
                             more about moderating. Two-fifths of          premium relies on clarity and points of         comes to promoting alternative serves
                             18 to 24-year-olds tell us that they are      differentiation.”                               that help Brits moderate their alcohol
                             actively trying to moderate their alcohol                                                     consumption. “Spirits have got ahead of
                             consumption. At the other end of the          CHOOSING NOT TO DRINK                           the game on it,” he says.
                             spectrum, the highest percentage of           Kantar surveys 30,000 households on a              “Be creative with it and think about
                             teetotallers per demographic group            regular basis and monitors why people           how you can market your drinks along
                             comes from 50-plus females. They              choose not to drink alcohol. “Across all        with a soft drink, a mixer, to bring it down
                             account for a third of non-drinkers in        age groups, not liking the taste is either      in abv and bring it down to that lower
                             Britain and that is growing.                  number one or number two in the list of         alcohol.
                                “We have younger drinkers                  reasons,” says Crossan. “That is the biggest       “Wine with a mixer is growing at 8.1%
                             moderating, and the older generation          hurdle that alcohol brands and no and           year on year. It’s a good area for wine to
                             cutting out alcohol altogether.”              low brands have to get over.                    look into, considering spirits is cracking
                                Crossan is keen to point out that the         “The good news is in 2017 a fifth of         this sector considerably at the minute.
                             average modern consumer is “very              consumers said they didn’t buy non-             The occasions that it attracts are upbeat
                             conscious”. He does not simply mean           alcoholic and low-alcohol beers because         and about socialising, an area in which
                             that they are awake, rather that they are     they didn’t like the taste, whereas in our      low and no-alcohol does very well.
                             mindful of the drinks they consume and        most recent survey the highest answer for          “It also attracts younger consumers –
                             the purchasing decisions they make.           people who drink them is because they           41% of still wine serves with a mixer are 18
                                “One third of shoppers try to buy          taste really good. Although there’s a long      to 35. It could be about taking your brand,
                             products with environmentally friendly        way to go in this area, it’s very interesting   which maybe doesn’t have the credentials
                             credentials,” he says. “Almost half of        that it is shifting in a positive direction.”   of a no and low, but think about how
                             consumers believe that manufacturers             Many brand owners ask Crossan if             you can reinvent it with a serve to attract
                             should be leading on reducing use of          shoppers are picking up alcohol-free beers      moderators, because there is a massive
                             plastic. Carlsberg has brought out a          by mistake, thinking they are alcoholic.        opportunity to capture moderators
                                                                           “Well if they were, there’s a pretty high       through spritzers in particular.
                                                                           percentage coming back, and that is a key          “A higher percentage of those drinking
                                                                           trend in this area,” he says. “If you can get   these drinks are happy to consider low
                                                                           your taste right, in terms of non-alcoholic     and no alcohol and they are trying to
                                                                           beer in particular, the repeat rates tend to    moderate. The average trying to moderate
                             If you can get your taste                     be very high. A few brands are touching         is 40%, but it’s 51% in this area.
                                                                           50% on their own in this area, so there’s an       “For the conscious consumer, there
                             right, in terms of non-                       opportunity in that.”                           is a pattern developing – younger
                             alcoholic beer in particular,                    He points to Adnams Ghost Ship               consumers moderating and older
     ISTOCK.COM/ ARTHOBBIT

                                                                           alcohol-free as a good example of a brand       consumers leaving alcohol. The 2020
                             the repeat rates tend to be                   enjoying strong shopper loyalty in this         consumer is very conscious, and that will
                             very high                                     space. “There is nothing that premium           continue to drive decision making in the
                                                                           within no and low-alcohol beer and cider,”      future for purchases.”

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           ANALYSIS: LABELLING

         CLARIFICATION
         CALLED FOR ON
         DEFINITIONS OF
         LOW AND NO
                                                                                                        ISTOCK.COM/ KHOSRORK

                                                         D
         At the moment, product                                              rinks producers
                                                                             reacted with dismay
         labelling is dependent                                              last year when a
         on a variety of abv                                                 Department of Health
                                                                             consultation resulted in
         percentage levels, which                                            no change to guidance
         creates confusion for all                     around labelling of no and low-alcohol
                                                       drinks. That maintained a frustrating
         involved. The general                         status quo. Under current guidance, only
         consensus is that greater                     beers and wines of up to 0.05% abv can
                                                       be labelled as alcohol-free. Those with
         guidance is needed.                           an abv of 0.5% to 1.2% should be labelled
         Martin Green reports                          as low alcohol. Anything between 0.05%
                                                       and 0.5% is supposed to be described as
                                                       de-alchoholised.
                                                           This is problematic for producers and
                                                       retailers as it creates confusion among
                                                       consumers and stifles growth in an
                                                       important category. In Germany a 0.5%
                                                       beer is labelled alcohol-free and in the US
                                                       it is referred to as non-alcoholic. This is
                                                                                                        ISTOCK.COM/ CHAMPJA

                                                       because a beer or wine at 0.5% abv has no
                                                       physiological impact on the body. It is too
                                                       weak to affect the blood alcohol level, and
                                                       is safe for drivers and pregnant women
                                                       to enjoy. Yet they are often left concerned
                                                       by the product being described as
                                                       low-alcohol rather than alcohol-free or
                                                       non-alcoholic, and that deters them from
                                                       making a purchase.
                                                           Orange juice typically has an abv of
                                                       0.5% as a result of natural fermentation,
                                                       as does a banana and a loaf of bread.
                                                       “You can currently buy kombucha that’s
                                                       1.2% abv in Waitrose without age ID, so
                                                       who knows what the rules really are at
                                                       the moment?” asks Laura Willoughby,

                                                       Everything 0.5% and below
                                                                                                        ISTOCK.COM/ ROWAN JORDAN

                                                       should be no-alcohol. That’s
                                                       where it is across the rest of
                                                       the world

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                                                                                    founder of consumer group Club Soda.
                                                                                        The Department of Health has
                                                                                    seemingly realised that its decision not to
                                                                                    change the guidance is an error, and it has
                                                                                    just finished another consultation with
                                                                                    Public Health England about the benefits
                                                                                    of telling people that drinks at an abv of
                                                                                    0.5% and below are alcohol-free.
                                                                                        “I am hoping it will come out with the
                                                                                    right suggestion, bearing in mind one of
                                                                                    its strategies is to promote more low and       We feel strongly that more
                                                                                    no-alcohol as a way of helping people
                                                                                    reduce their drinking,” says Willoughby.
                                                                                                                                    support should be given to
                                                                                    “Everything 0.5% and below should be            the development of low and
                                                                                    no-alcohol. That’s where it is across the
                                                                                                                                    no-alcohol drinks because
                                                       ISTOCK.COM/ DEAGREEZ

                                                                                    rest of the world. At the moment, when
                                                                                    producers are asked about it being 0.5%,        of the role they play in
                                                                                    they go, ‘oh I don’t know, it’s the same as a
                                                                                    banana’, and everyone panics.
                                                                                                                                    encouraging people to drink
                                                                                        “Spain and Germany have such                responsibly
                                                                                    buoyant, accepted alcohol-free beer
                                                                                    markets, because the pregnancy groups,
                                                                                    the driving groups, the government and          greater clarity as they make purchasing
                                                                                    everyone else were aligned on what was          choices.”
                                                                                    alcohol-free, how much you can drink                Willoughby can offer some intriguing
                                                                                    and these were OK if you’re pregnant and        examples of just how muddled the
                                                                                    driving and so on.                              current guidance around labelling is.
                                                                                        “It’s a bit ridiculous anyway, because          “At the minute, as an alcohol-free beer
                                                                                    they’re only guidelines. It’s up to Trading     you have to say what you are [alcohol-free
                                                                                    Standards to decide on. There’s no              or low-alcohol]. But if you are a soft drink,
                                                                                    comeback at the minute. Nobody has told         the rules don’t apply, you can be 0.5%,”
                                                                                    anybody off, nobody has asked anybody           she says. “Equally there’s no sugar tax on
                                                                                    to re-label their products. Nanny State         Kopparberg alcohol-free, because it’s an
                                                                                    [which is 0.5% abv] is still called alcohol-    alcohol-free cider, but if it was a soft drink
                                                                                    free on the label. If a minister can be kept    it would have sugar tax.
                                                                                    in the Department of Health for long                “So every soft drink should call itself
                                                                                    enough it might help.”                          an alcohol-free version of an alcoholic
                                                                                                                                    drink to get out of sugar tax, and every
                                                                                    BACKING CHANGE                                  alcohol-free beer should call itself a soft
                                                       ISTOCK.COM/ FYMSTUDIO

                                                                                    Some producers of 0.0% abv have                 drink and then it can have whatever abv
                                                                                    warned that it would be misleading              on it,” she says. “That’s the weird situation
                                                                                    and dangerous to refer to 0.5% abv              at the minute.
                                                                                    beers as alcohol-free beer. However, the            “Consistency around messages needs
                                                                                    British Beer & Pub Association and the          to change. I hope that will change. If the
                                                                                    Portman Group have backed a change              government really thinks people are at
                                                                                    in guidance. “We’re seeing a real boom          risk when consuming things at 0.5% abv,
                                                                                    in the popularity of low and no-alcohol         then it really needs to look at other drink
                                                                                    products,” says Portman Group chief             types.”
                                                                                    executive John Timothy. “The impending              The government is a bit tied up with
                                                                                    expiration of current guidance around           election fever and Brexit right now,
                                                                                    their definitions has acted as a catalyst for    but it should eventually get around to
                                                                                    a rethink of descriptors for this important     tightening up its alcohol strategy and
                                                                                    category of drinks.                             labelling guidance.
                                                                                       “We feel strongly that more support              “Once it has changed, the sector needs
                                                                                    should be given to the development              to come together and work out how
                                                                                    of low and no-alcohol drinks because            it talks to those other key influencers
                                                                                    of the role they play in encouraging            in the sector, to have a very clear and
                                                                                    people to drink responsibly. There are          consistent message,” says Willoughby.
                                                                                    currently four descriptors in use, which        “Who looks after this sector? There isn’t
                                                                                    are confusing for both producers and            a trade association in place. The existing
                                                                                    consumers to navigate.                          trade associations such as SIBA have some
                                                                                       “Bringing the UK’s alcohol-free              responsibility in this space, but there are
                                                       ISTOCK.COM/ VIKTOR_GLADKOV

                                                                                    threshold up to 0.5% from where it              some new things to discuss, and nobody
                                                                                    currently sits at 0.05% will bring UK           is bringing the concerns up for wider
                                                                                    regulations in line with existing practice      discussion.
                                                                                    in the majority of European countries –             “There will be perception hurdles as
                                                                                    this will create a level playing field for UK    well as regulatory hurdles that need to
                                                                                    producers and will also give consumers          be discussed.”

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         SEEKING COHESION IN A
         FRAGMENTED CATEGORY
         While it’s a tiny market at the moment, no and low-alcohol is only going to grow, our roundtable
         experts agree. But the trade needs to work together to properly define the sector and ensure a
         smooth journey into the future. Martin Green reports from the event

          ANALYSIS: ROUNDTABLE

         THE PANEL

         ZOEY HENDERSON                          RICHARD JONES                     LAURA WILLOUGHBY     DAWN DAVIES MW
         Head of operations, Redemption          Managing director, Reh Kendermann Founder, Club Soda   Head buyer, the Whisky Exchange

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                                   S
                                                      ales of beer, wine and    With thanks to our partner             group of alcohol-free, gluten-free, vegan
                                                      spirits are declining     Black Tower and associate              bars; Richard Jones, managing director of
                                                      each year as              sponsor Big Drop Brewing               Black Tower supplier Reh Kendermann
                                                      increasing numbers of                                            and chairman of Yapp Brothers; Nick
                                                      Brits strive to                                                  Worthington, commercial director at Big
                                                      moderate their                                                   Drop; and Laura Willoughby, founder
                                alcohol consumption and lead healthier                                                 of Club Soda, an organisation of 45,000
                                lives. Drinks retailers can help preserve                                              members that encourages mindful
                                the future health of our industry by                                                   drinking and runs festivals to that end.
                                championing the mindful drinking                                                          Willoughby’s research suggests that
                                movement that is sweeping the nation.                                                  8.6 million people are moderating their
                                    Sales of low and no-alcohol alternatives                                           drinking this year, and she aims to create
                                account for just 0.7% of the BWS category,                                             a society in which nobody has to feel out
                                while annual sales of adult soft drinks                                                of place not drinking. She is concerned
                                currently stand at just £202 million per                                               that nobody is looking after this sector,
                                year (Nielsen and Kantar). However,                                                    and no trade body is taking ownership
                                there is a great deal of potential for this                                            of it. “There are perception hurdles as
                                flourishing sector. Consumer demand                                                    well as regulatory hurdles that need to be
                                is rising, it has the potential to offer high                                          discussed,” she says.
                                margins and it is important for retailers to
                                back it from a responsibility standpoint.                                              DISJOINTED SECTOR
                                    Yet right now the category is                                                      The no and low-alcohol sector certainly
                                embryonic, muddled and fragmented, so                                                  seems extremely disjointed. There is little
                                it is important to bring the trade together                                            consistency around merchandising in the
                                to share best practice and to work on a                                                retail channel, shoppers are often unsure
                                blueprint for shaping a successful future.
                                    With that in mind we assembled
                                                                                  THE VENUE                            where to find these drinks and terms such
                                                                                                                       as low-alcohol and alcohol-free can be
                                a heavyweight panel covering many                 Thank you to Vagabond Wines          confusing for consumers. The pricing is
                                different facets of the trade to discuss the      for hosting DRN’s roundtable         polarised, with alcohol-free wine typically
                                                                                  discussion about mindful drinking.
                                potential of this sector and how to ensure                                             selling below £4 per bottle and the likes
                                that it thrives long into the future.                                                  of Seedlip, Ceder’s and Aecorn pushing
                                    It comprised: Dawn Davies MW, head            VAGABOND                             towards super-premium price points.
                                buyer at the Whisky Exchange and                  Charlotte Street, London                The category clearly has a long way
                                Speciality Drinks; Freddie Cobb, buyer            vagabondwines.co.uk                  to go, and there are many obstacles
                                at Vagabond Wines; Zoey Henderson,                                                     to be overcome, but the trade clearly
                                head of operations at Redemption, a                                                    recognises its potential. “I am seeing
                                                                                                                       increasing sales and increasing numbers
                                                                                                                       of products coming through, but I am
                                                                                                                       seeing increasingly bad products and I am
                                                                                                                       seeing a need for more clarity around the
                                                                                                                       topic,” says Davies, who launched Seedlip
                                The messaging, the                                                                     at Selfridges and then at the Whisky
                                                                                                                       Exchange when she changed jobs.
                                education and labelling are                                                               Henderson adds: “It’s in such a unique
                                in a bit of a mess right now,                                                          place and it’s in such infancy. The
                                                                                                                       messaging, the education and labelling
                                but it will become much                                                                are in a bit of a mess right now, but it will
                                clearer in future                                                                      become much clearer in future. We have
                                                                                                                       to drive it.”

         NICK WORTHINGTON                         FREDDIE COBB                             SONYA HOOK                       MARTIN GREEN
         Commercial director, Big Drop            Buyer, Vagabond Wines                    Deputy editor, DRN               Editor, DRN

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             Davies is pleased to be making high
         margins by selling drinks that mimic
         spirits, but unsure if it is ethical. “I wonder
         if no and low is ripping off the consumer,”
         she says. “We make very high margins on
         no and low. It is huge. It’s good for me to
         make a higher margin, but is it right?”
             Jones argues that the trade needs
         higher-margin products if it is to
         survive, and urges buyers to champion
         this category. “The drinks industry,
         compared with a lot of retail industries,
         especially in the off-trade, has one of
         the lowest margins,” he says. “One of
         the reasons there are very few large
         specialist chains left in the industry is
         that it’s not sustainable to run a shop on
         the margins that are currently out there.
         As an industry we need to have exciting
         products that enable the trade to actually
         make a living.
             “At the moment, if you look at the
         commercials of running most drinks
         companies, as a specialist it’s extremely
         difficult to make a living. As a grocer it’s
         great, because if people buy a whole
         basket of groceries and then add alcohol
         to it, that’s an additional sale. But if you
         are surviving purely on selling alcoholic
         products, the industry really needs
         another 10% margin to be really healthy.
         It’s great if they are offering that margin.
         Take it.”

         CRUCIAL ALTERNATIVES
         Jones has worked in the wine trade for
         more than 40 years and he believes low
         and no-alcohol products are crucial to its
         sustainability. “This is really critical for us,
         particularly for the wine industry,” he says.
         “Having had a glorious 50 years of growing
         wine sales as it was demystified and the
         supermarkets started selling it and sales
         grew enormously, wine sales have been
         reducing for at least five years now, and we
         need to sell something. Lower alcohol is           don’t dealcoholise, we don’t extract, we                                 Davies: “We have
         how we can offer alternatives.”                    don’t use reverse osmosis – we go through                             to be responsible as
            Cobb worked in wine production                  the full brewing process and you end up                                 buyers to give the
         before becoming a buyer at Vagabond,               with a beer that tastes like a beer and you                              consumer a good
         and he says he is still to find an alcohol-        are not compromising at all.                                                      product”
         free wine of the requisite quality to stock           “We make beer to taste like beer, but
         and put on its Enomatic machines. “I’m             without the alcohol, and we are very
         yet to taste anything that we would be             much quality driven. Looking after
         proud enough to put our names to, so               yourself is a massive trend now, and not
         that’s a concern,” he says. “                      drinking no longer carries a stigma. It
            The beer category has enjoyed greater           seemed to be ridiculous that there wasn’t
         success within the low and no-alcohol              great beer out there without alcohol in it,
         sector as it has come closer to replicating        so we created Big Drop.
         the taste, texture and experience of
         drinking a lager or an ale. “Beer seems
                                                               “The demand is there now from
                                                            consumers for quality products.”               The whole soft drinks category
         to be the easiest transition for people to            Redemption was ahead of the market
         understand,” says Worthington. “As long
         as there are brews out there that taste
                                                            when it first launched bars selling alcohol-
                                                            free drinks and vegan, gluten-free food
                                                                                                           needs to be flipped on its
         pretty close to alcoholic beer. It’s about
         choice, not compromise. You don’t have to
                                                            six years ago. “Now, thankfully, the trends
                                                            have caught up with our offer and we are
                                                                                                           head. No retailer worth its salt
         compromise on flavour or quality, you just
         open up a choice of having alcohol or not.
                                                            very much on brand,” says Henderson. “At
                                                            the start it was all about imitating alcohol   should sell cola or lemonade
            “When you are naturally brewed – we             and imitating meat, as that’s how you get

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                                                           Natuero by Torres is also a very good
                                                           product.
                                                              “It’s not all about replicating, but giving
                                                           someone who normally drinks alcohol
                                                           the experience of drinking alcohol, getting
                                                           as close as possible to that sensation in
                                                           terms of taste and texture. It’s hugely
                                                           important. It’s less important for someone
                                                           who was never a drinker.”
                                                              Cobb adds: “The low and no-alcohol
                                                           wines I’ve tasted just don’t have the
                                                           texture and mouthfeel. People are moving
                                                           away from crisp, light wines such as Pinot
                                                           Grigio. They want something that has a
                                                           bit more body to it. Not necessarily more
                                                           alcohol, but more body, texture and
                                                           mouthfeel to it.”

                                                           REDUCING SUGAR
                                                           Some producers use sugar to provide
                                                           texture when creating alcohol-free drinks,
                                                           but Redemption is also a sugar-free bar. “A
                                                           big reason for people not drinking alcohol
                                                           is they want to reduce their sugar,” says
                                                           Henderson. “We know how much sugar
                                                           alcohol contains. It’s finding that balance
                                                           and finding products that can mimic the
                                                           flavour profiles and textures of alcohol
                                                           without using sugars.
                                                               “But for us it all boils down to
                                                           education, because people are unaware of
                                                           the percentages, what’s in the drinks, how
                                                           to drink it and how to mentally assess
                                                           price points. With vegan food, people
                                                           attributed the meat on the plate to the
                                                           value, but it’s actually the creation of the
                                                           dish and the flavours, and with non-
                                                           alcoholic drinks it’s the process, the herbs,
                                                           botanicals, textures and flavours. All of
                                                           those combined. You have to start a whole
                                                           new education process.
                                                               “The whole soft drinks category needs
                                                           to be flipped on its head. No retailer worth
                                                           its salt should sell cola or lemonade.           Henderson (top         comes to communicating with consumers
                                                           They’re not good products. They’re full          right): “You have to   in the no and low-alcohol sector.
         people into it. But ultimately many people        of chemicals. They’re bad for you. If the        start a whole new         “Some of the companies in the spirits
         don’t want imitation.                             other drinks on your menu are shining            education process”     industry are masters of branding,”
            “Some people still want something that         examples of provenance and taste, and                                   he says. “Diageo [which recently took
         tastes a bit like rum or tastes a bit like gin,   then you automatically stick cola on the                                over Seedlip] is probably one the best
         and you get those flavour profiles. Then          menu, that’s got to stop.”                                              branding companies in the world, but it
         you get the plant spirit category, where              Jones is also keen to point out that                                also has the financial resources to invest
         they are more like botanical tinctures. It’s      alcohol-free and low-alcohol wine allows                                massively. The wine industry is incredibly
         a cross between alchemy and mixology,             consumers to significantly cut back on                                  fragmented. There are hundreds of
         and it sits in a different category.”             calorie intake. “Zero-alcohol products                                  thousands of wine producers, and the
            Davies agrees with this sentiment.             tend to have about less than half the                                   investment in brands is relatively small,
         “They are two separate categories and             calories of the full-alcohol product,”                                  because no company has the financial
         they need to be looked at in very different       he says. “Our 5.5% abv wine has only 55                                 might of Diageo to do it.
         ways,” she says. “It has to be two very           calories, and our zero-alcohol wine has 45                                 “The company with the largest market
         distinct things to educate the consumer in        calories a glass. With the average 13.5% abv                            share in the UK is 5%. That compared
         the right way.”                                   wine, you are probably looking at about                                 to most FMCG sectors is very small.
            The biggest obstacle for her is texture.       135 calories for a dry wine.                                            Trying to get new concepts to consumers
         “With no alcohol in it, texture is often              “Alcohol carries twice as many calories                             requires communication. The fastest
         an issue,” says Davies. “Texture is really        per gram as sugar, because the calories                                 way is advertising. If you’ve got a very
         important in the whole experience of              are very concentrated. For those who are                                small budget, it’s much slower and more
         alcohol. The only product I have come             reducing calorie count, low or lower are                                difficult to get the message across, so
         across that gives me texture and good             extremely good.”                                                        you’ve got to be very canny. We have a
         flavour is Aecorn. That’s really interesting          He appreciates that spirits and beer                                very fragmented industry.
         and a really important part of the journey.       have an advantage over wine when it                                        “There will be very exciting things

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         that suddenly poke their head up. Seedlip       demand has not followed through, but it’s     Cobb: “People are     home will be crucial to the success of the
         is one of the most interesting things that      changing this year. The on-trade is now       moving away from      category, particularly for the drinks that
         has happened, because it has created            looking for better quality.                   crisp, light wines    mimic spirits. “Aecorn and soda is simple,
         its own category. It’s another Hoover or           “The retailers were quicker onto the       such as Pinot         fresh, low-sugar, low-calorie, easy to make.
         Dyson or Biro, it really has been very          trend than the on-trade, but the on-trade     Grigio. They want     Those simple serves are very strong in the
         clever.                                         is now catching up.”                          something that        market. That’s why gin has done well.”
             “Trying to do that in wine is very                                                        has a bit more body      She believes it is the big brand owners
         difficult. The brands are all quite small.      SERIOUS MOVES                                 to it”                that will drive growth in this sector.
         Beer is four times bigger than wine is in       Jones believes the grocers are now taking                           “Why are Moët, Tanqueray and Cîroc so
         this sector because the big brands are          this category very seriously. “There is now                         popular?” she asks. “They have marketing
         behind it.”                                     a specific buyer for low and no-alcohol                             budgets and advocates such as Beyonce.
             Most major brewers have piled into          wine,” he says. “The beer buyer will buy                            The hope is that with Diageo now taking
         this space and secured listings with the        the low and no-alcohol beer. A wine buyer                           on Seedlip, that may change. It is doing
         multiple retailers, but Worthington warns       will be given certain countries to buy,                             that mass market branding. The big brand
         that this is not necessarily beneficial for     and tacked on will be low and no-alcohol.                           owners will drive the mass market.
         the future health of the category.              There is some thought being given to                                   “There are some awesome brands
             “The big brands are behind it, but          it, and most supermarkets now have                                  that are doing some funky stuff that is
         that’s not always good,” he says. “They         some sort of low and no section. It might                           changing the industry and how people
         often don’t know what to do, and they           just be wine, or it might be all together.                          perceive wine. They are making it more
         dealcoholise it, and you end up with a          The consumer now has something that                                 consumer friendly and reducing alcohol
         poor product. Their consumer has to             is reasonably well signposted. Lower-                               levels. Wine is not standing still, it’s just
         compromise, and it doesn’t always help          alcohol will tend to be put into the main                           working in a small parameter.”
         the category.                                   category as a sub-category. In the earlier                             Yet she argues that buyers need to
             “We were told by one of the big retailers   days, it was a real problem. You don’t                              serve as gatekeepers for the category
         recently that if one of the big guys came       put it with Coca-Cola, because it’s a very                          and ensure that it retains integrity going
         in with their alcohol-free version of their     different drink to the soft drinks.                                 forward. “It cannot go the way of gin.
         biggest selling product we would be out             “The major retailers are taking this
         the door immediately. We know that              very seriously, because they are selling
         product coming out would not even be            more and more each year. Money drives
         a fifth the quality we have put in, but it      these things, and space. We have probably
         has a brand name. There is a risk in the        been through the most difficult stage – the
         beer space that the big brands are piling       infancy, where people weren’t quite sure                            We see multiples with their
         into the retail space and squashing out         – and now people are sure, and we see a
         the earlier alcohol-free brands that were       lot of big multiples with their own-label                           own-label range, but for the
         more craft and quality driven.                  range, but for the category to grow you                             category to grow you need
             “The retailers were quicker to pick up      need brands, because they tend to be
         on consumer demand than the on-trade.           more innovative, more exciting.”                                    brands, because they tend
         The on-trade has been much slower and               Davies says that promoting simple                               to be more innovative
         the barriers have been up. The consumer         serves that shoppers can easily make at

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         There are gins out there that are not                                   the law tells me a product is. We have           space,” she says. “You could do tastings of
         fucking gins, because they have no juniper                              to be responsible as buyers, to give the         your ranges. We know that if you do a beer
         in them. If we don’t act now, the industry                              consumer a good product and to help              tasting or botanical tasting, these events
         will be 10 miles down the road.                                         the consumer to understand what                  are full. People will buy a brand of alcohol
            “If it’s not a gin, it shouldn’t be referred                         that product is. We are responsible as           they haven’t tasted before, because they
         to as a gin. You can liken it to something. I                           retailers and bars for the consumer, but         know what it does. They won’t spend
         said to one producer, I am not going to sell                            the producer has a responsibility to say,        £1.50 on an alcohol-free drink unless they
         your product, because by EU definition                                  ‘this is my category, is this an acceptable      know they definitely like it, which is why
         you cannot call it a triple sec, you cannot                             product?’ and then drive it.”                    we do the festivals.”
         call it a liqueur, because you are by law                                                                                   Henderson was impressed by
         wrong, and if I don’t stand up for that then                            MARKET DRIVERS                                   Sainsbury’s decision to launch a pop-up
         I am allowing these people to do what                                   Worthington believes the category                bar in London called the Clean Vic. “That
         happened with gin. They are changing the                                will be driven by a combination of               was an amazing thing to do,” she says.
         labels now, because I said it’s illegal, you                            PR, marketing, online activity and               “The smaller brands can piggyback on
         can’t do this. It’s up to me as someone who       Willoughby:           partnerships between suppliers and               that. If big brands are smashing loads of
         knows what the law should be to help              “Supermarkets         retailers. “Communication is definitely          marketing budgets and having celebrities
         safeguard the consumer.                           actually have a lot   an issue in a retail environment,” he says.      endorsing low and no-alcohol brands and
            “There have to be rules put in place,          of space. You could   “Online it’s easy, because you can present       putting huge spend on online advertising
         people defining what is an alcohol-free           do tastings of your   more information about the product than          and above-the-line advertising, then that’s
         product. I have to stand up for what              ranges”               what’s just on the pack. Driving trial is        educating consumers, and they can then
                                                                                 big for us, because once they taste it they      get into the smaller brands.”
                                                                                 say, ‘wow, that is not what I expected, it’s        She feels many of the challenges
                                                                                 much better’.”                                   that dogged the sector in its infancy are
                                                                                    Henderson says sampling can be                starting to be ironed out. “It has been a
                                                                                 tricky in a retail space. “It’s difficult in a   logistical challenge,” she says. “We now
                                                                                 supermarket environment, because you             use a non-alcoholic wholesaler we can get
                                                                                 get a thimble of it, it’s warm and it’s not      all our products from. At the start there
                                                                                 very exciting,” she says. “You want it in        were independent brands, and you would
                                                                                 a nice glass with a garnish. Retailers can       have their product in for a couple of
                                                                                 work with brands to do little pop-ups and        weeks, then you couldn’t get hold of them,
                                                                                 masterclasses, to get the people from the        then they would disappear, you would be
                                                                                 brand in to give the staff an education.         waiting for the next batch to be made.
                                                                                 That’s really important, to give that               “In its infancy there were so many
                                                                                 support.                                         problems with routes to market.
                                                                                    “The brands can then use their online         Low and no-alcohol wholesalers have
                                                                                 space to build resources, and there’s also       been a massive help, because you can
                                                                                 a responsibility of working with PR and          get it all from one place. That’s a huge
                                                                                 press to create more noise about it, and to      barrier lifted.”
                                                                                 have more mindful drinking festivals, to            This trend for moderation looks likely to
                                                                                 re-educate people about it.”                     accelerate in the future and it is becoming
                                                                                    Willoughby has seen multiple retail           easier than ever to make a success of it.
                                                                                 buyers join her group to research                Retailers that embrace it could reap the
                                                                                 what consumers want in this space.               rewards in the years ahead. It might even
                                                                                 “Supermarkets actually have a lot of             help them stay in business.

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          ANALYSIS: ALE

         HOW BEER GOT                                                                     T
                                                                                                            he early-1980s comedy
                                                                                                            sketch show Not The
                                                                                                            Nine O’Clock News
                                                                                                            captured the public

         RECAST AS A LOW
                                                                                                            mood around
                                                                                                            alcohol-free beer in a
                                                                                       spoof commercial for Barbarian, a
                                                                                       send-up of Barbican, then the market

         AND NO ROLE MODEL
                                                                                       leader in the UK. You can find it on
                                                                                       Youtube. The sketch sees Rowan
                                                                                       Atkinson impersonate Lawrie
                                                                                       McMenemy, the football manager who
                                                                                       advertised the real thing, in a voiceover
                                                                                       for a film in which Atkinson and co-stars
                                                                                       Griff Rhys Jones and Mel Smith play a
         Once little more than the butt of many jokes, this category has               group of dockers working up a sweat
                                                                                       during a heavy shift.
         now become a hero of the reduced-abv movement, showing how                       They retire to the pub at the end of
         it’s possible to retain flavour and quality in the absence of alcohol.        the day for a glass of the beer which the
                                                                                       voiceover tells us is “clear, cool, flavourless
         Nigel Huddleston reports                                                      but, above all, refreshing, pint after
                                                                                       pint”. The trio then demonstrate its cool,
                                                                                       refreshing properties… by pouring it over
                                                                                       their heads. Cut to Atkinson in a bath of
                                                                                       the stuff and the commentary advising:
                                                                                       “But mind, don’t confuse it with beer.”
                                                                                          The sketch summed up the feeling

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                                                                           CORE PRINCIPLES
                                                                           Not only have low-alcohol beers changed             by four factors: lifestyle, health, religion and
                                                                           beyond recognition but the range of reasons for     drinking occasions.”
                                                                           seeking them out has widened as well.                 Graham Archibald at Morgenrot adds:
                                                                             What was once a single-function product –         “It started with the health-conscious and
                                                                           looking like you were having a beer when you        abstainer, but there is undoubtedly a younger
                                                                           had to drive home – is now a multi-purpose one.     generation who aren’t as interested in alcohol
                                                                             John Hadingham, managing director of              as previous ones helping to drive further
                                                                           Suffolk’s St Peter’s Brewery, which has been        interest and growth.”
                                                                           seeing success in supermarkets with its               Rob Fink at Big Drop says: “In a customer
                                                                           Without alcohol-free brand, says modern             survey we found that only a fifth of
                                                                           health concerns are playing more into the           respondents chose not to drink alcohol at all.
                                                                           hands of completely alcohol-free products than      Most are simply looking at ways to moderate
                                                                           the low-alcohol band above 0.5%.                    their drinking without giving up beer altogether.
                                                                             “There is more interest in 0.0% and 0.5% abv        “The underlying reasons for that could be
                                                                           than the low-alcohol sector, with one in three      general health and wellbeing or any number of
                                                                           young adults shunning alcohol and one in five       specific things, such as training for a sporting
                                                                           British adults now being teetotal,” he says.        event, corporate policy for working hours or
                                                                             “The surge in demand is definitely driven         pregnancy.”

                                                                                                                                         – but the category as a whole is enjoying
                                                                                               ACTION POINTS FOR RETAILERS               massive growth on the back of huge

                                                                                               TOP TIPS                                  shifts in consumer drinking habits and
                                                                                                                                         perception of such products.
                                                                                                                                            What’s more, the products themselves
                                                                                               “Just as you’d make suggestions           have actually changed. The fashion for
                                                                                               on alcoholic drinks, start driving        bigger, bolder flavours in full-strength
                                                                                               interested consumers to your no and       beers have inspired a new generation of
                                                                                               low ranges. Consider shelf-talkers,       brewers to create low-alcohol brews that
                                                                                               signage and in-store promotions           deliver more character and body.
                                                                                               that drive trial. For smaller stores,        The 0.5% abv specialist Big Drop is
                                                                                               tastings are a great way to dispel        just one example, adopting different
                                                                                               any myths about quality and taste.        processes from those early Barbicans to
                                                                                               Low and no drinks are a world apart       get flavour and body into the beer rather
                                                                                               from how many of us may remember          than take it out.
                                                   ISTOCK.COM/ MARTIN-DM

                                                                                               them, thankfully.”
                                                                                               JOHN HADINGHAM, ST PETER’S                INNOVATIVE TECHNIQUES
                                                                                                                                         Founder and chief executive Rob Fink
                                                                                               “As with any drink sector there is        says: “There’s a world of difference
                                                                                               good and bad out there so make sure       between what we do – brew to strength
         about alcohol-free and low-alcohol beers                                              you try before you buy. Even better,      so there’s no extraction of alcohol after
         at that time: that they were laughable,                                               get some of your customers to blind       the event – versus what other brewers do
         pallid imitations of proper beer, even                                                taste some. We’re confident our           with, say, their reverse osmosis kits.
         the landfill lagers that were increasingly                                            beers will more than stand up. If you         “We’ve developed innovative
         taking hold of the UK market.                                                         can start by offering three or four       techniques and turned to ingredients
            Nearly four decades of knocking at the                                             differing styles that really deliver      that include specialist yeast and grain
         door later and low-alcohol and alcohol-                                               on quality, you can then adapt and        selection – more than 20 different
         free beers appear finally to have made it                                             expand where necessary. A quality         varieties – with brewing temperatures
         over the threshold from joke category to                                              lager has to be the first concern, then   that, well, go against the grain.
         become serious contenders for British                                                 a weizen and maybe then look at a             “We sometimes add lactose which
         consumers affections.                                                                 couple of craft ales.”                    boosts the mouthfeel and avoids the
            In the UK, Barbican has been consigned                                             STEPHAN KOFLER,                           watery texture that blights many alcohol-
         to history – though the brand is still                                                KROMBACHER UK                             free beers.”
         brewed in Dubai and popular in Malaysia                                                                                             Martyn Railton, managing director at
                                                                                               “Take the time to understand what         speciality beer importer Euroboozer, says
                                                                                               it is you’re offering your customers.     its sales growth in no-low was around
                                                                                               Engage your suppliers in training for     500% in 2018 and that’s accelerated to
                                                                                               your staff and activations for your       650% this year.
                                                                                               customers. Also think about ranging.          Railton reports particular success for
         We’ve developed innovative                                                            These options aren’t ‘diet’ or ‘light’;   gluten-free low-alcohol beers from Stiegl
                                                                                               they’re first and foremost for drinking   in Austria and a 0.3% range from Mikkeller
         techniques and turned to                                                              occasions, so they should be treated      of Denmark.
         ingredients that include                                                              as such. Think about milk: full-fat           “No and-low alcohol lagers and wheat
                                                                                               and skimmed sit side by side, not in      beers have been the early pacesetters but
         specialist yeast and grain                                                            completely different aisles.”             I think we’re seeing different beer styles
         selection                                                                             JAMES GRUNDY, SMALL BEER                  and abvs now fighting back,” he adds.
                                                                                                                                             “The depth of beers now available

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                                                                                                                                         DEFINITIONS
                                                                                                                                         With the market for lighter abv
                                                                                                                                         drinks diversifying at a rapid pace,
                                                                                                                                         descriptions such as “no-alcohol”,
                                                                                                                                         “alcohol-free” and “low-alcohol”
                                                                                                                                         are often used as if they are
                                                                                                                                         interchangeable.
                                                                                                                                           The Department of Health &
                                                                                                                                         Social Care issued new “descriptors
                                                                                                                                         guidance” in a bid to help consumers
                                                                                                                                         and businesses make sense of this
                                                                                                                                         area in December 2018.
                                                                                                                                         The definitions it lays down are
                                                                                                                                         paraphrased as follows:

                                                                                                                                          n Low-alcohol: 1.2% abv or less
                                                                                                                                          n De-alcoholised: 0.5% abv or less
                                                                                                                                         and only applied to a drink where
                                                                                                                                         the alcohol has been extracted
                                                                                                                                          n Alcohol-free: 0.05% abv or
                                                                                                                                         less where the alcohol has been
                                                                                                                                         extracted

                                                                                                                                         In addition, the term non-alcoholic
                                                                                                                                         shouldn’t be used in conjunction
                                                                                                                                         with a name commonly associated
                                                                                                                                         with an alcoholic drink, hence
                                                                                                                                         Heineken 0.0 is more accurately
                                                                                                                                         alcohol-free than non-alcoholic.
                                                                                                           ISTOCK.COM/ TERO VESALAINEN     There are exceptions around
                                                                                                                                         spirits which makes the whole
                                                                                                                                         new Seedlip-inspired category a
                                                                                                                                         hot potato and one reason many
                                                                                                                                         brands in it shy away from using
                                                                                                                                         the word “spirit” at all.
                                                                                                                                           In addition, all products,
                                                                                                                                         whichever slot they fall into, are
         and the innovation being shown from           more on low-strength lagers, particularly                                         required to state their actual abv
         brewers is remarkable.                        alternatives to big brands such as                                                anyway, or that they contain no
            “Our range now includes more than 20       Budweiser Prohibition, Peroni Libera,                                             alcohol where they don’t.
         different beers and we’re always actively     Heineken 0.0 and Beck’s Blue.                                                       The new guidance was issued last
         on the lookout for others.”                      Fink at Big Drop says Sainsbury’s recent                                       year and replaced legal definitions
                                                                                                                                         that had been in place since
            Its recent deal to represent the Danish    pop-up, alcohol-free Clean Vic pub in
                                                                                                                                         1996 under the Food Labelling
         brewer To Øl in the UK has brought the        London’s Holborn was a sign that multiple                                         Regulations. Effectively, the labels
         producer’s 0.4% abv Under The Radar           buyers are starting to “get it” more but                                          are now voluntary and offer more
         into the fold.                                thinks independent retailers have been                                            wiggle room for producers, but
            “We now have no/low-alcohol wild fruit     central to helping the category diversify.                                        local trading standards will use
         beers and stouts too,” adds Railton. “This       He adds: “At first, I was often met                                            the guidance to “help determine
         sort of thought, creativity and innovation    with a blank look, even from the                                                  compliance” where they believe
         around low-alcohol beers has never been       most progressive of independent craft                                             labelling is misleading, inaccurate
         seen before so it’s a great time to drink     beer shops.                                                                       or unclear.
                                                                                                                                           The quasi-voluntary nature of the
         beer, whether you want alcohol or not.”          “Now, after just three years, it would be                                      guidance, bending to convention
                                                       pretty unimaginable not to have a decent                                          rather than rules, is why some
         RISING TO THE CHALLENGE                       alcohol-free section in a craft beer shop                                         brewers freely move between
         There’s little doubt that some                and the multiples are playing catch-up                                            the categories even where their
         supermarkets’ support for low-alcohol         on that.                                                                          abvs don’t match the prescribed
         beer, with dedicated bays and greater            “We’ve always aimed to give people                                             definitions. For example, Big Drop
         choice, have propelled the category           choice so they can still drink whatever                                           calls its 0.5% beer alcohol-free, as
         forward over the past five years or so.       style of beer they like, whenever they like,                                      does Adnams with its 0.5% version
                                                                                                                                         of Ghost Ship ale.
            Railton thinks the low-alcohol             rather than being forced down the route
                                                                                                                                           Big Drop’s Rob Fink says:
         challenge is now being taken up further       of not-so-great-lagers.                                                           “There’s a big education piece and,
         down the retail food chain.                      “We’re expanding our range with a                                              whether talking to trade contacts
            “When it comes to the big brands,          new Golden Ale, available in 50cl bottles,                                        or customers, there are plenty of
         the supermarkets are leading the way in       and a series of 0.5% abv collaborations                                           myths we like to bust. Alcohol-free
         terms of volume, but when it comes to         with well-known breweries to broaden                                              doesn’t necessarily mean it has
         choice, variety, different beer styles and    our craft credentials, so that their                                              to be 0%. An abv of up to 0.5% is
         limited-edition beers, independent bottle     customers can better understand that the                                          universally acceptable, with plenty
         shops and online retailers are doing a        alcohol-free label no longer means worty                                          of unlabelled foods having a similar
                                                                                                                                         or higher alcohol content, such as
         fantastic job,” he says.                      or watery.”
                                                                                                                                         ripe bananas and burger buns.”
            Multiples’ ranges still tend to focus         It’s also just released a quartet

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20 DrinksRetailingNEWS                  www.drinksretailingnews.co.uk                        BUYERS’ GUIDE TO MINDFUL DRINKING 2019

         of collaborations – with Fyne Ales,           and make a decision on the low and no-
         Fourpure, Harbour and Salt – comprising
         a raspberry gose, a black IPA, a hibiscus
                                                       alcohol beers of today, not the dross of the
                                                       past,” he says.
                                                                                                               SMALL BEER
         saison and an India pale lager.                  “While I’m sure many people will still               The thirst for lower-strength
             Lowlander added a Wit Beer to its         prefer a full abv drink, many are realising             alternatives to mainstream
                                                                                                               alcohol brands has seen a surge in
         alcohol-free range of botanically-brewed      that they don’t want or can’t afford the
                                                                                                               popularity for beers above the 0.5%
         beers in the spring, joining American Pale    alcohol hit every time.                                 abv low-alcohol cut-off but below
         Ale, IPA, Winter IPA and Poorter.                “In these scenarios, it was probably                 the 3% abv level that traditionally
             Founder Frederik Kampman says:            better before to have a cup of tea or a soft            typifies “proper” beer.
         “The switch into low/no is being led by       drink. Now that is not the case.”                         One brewer, Small Beer, has even
         18 to 24-year-olds. But while the trend          Morgenrot, which handles                             appropriated the generic name for
         towards moderation is being led by            Krombacher’s UK distribution, launched                  such products that dates back to
         younger consumers it is gaining traction      the Dutch brewer Vandestreek’s                          the 18th century for a range that
                                                       Playground Non-Alcoholic IPA this year
                                                                                                               comprises 2.7% abv Steam, 2.5%
         with the mass market and more affluent
                                                                                                               abv Session Pale, 2.1% abv Lager
         consumers.”                                   and has now added a raspberry and                       and 1% abv Dark Lager.
             German brewer Krombacher extended         blueberry sour beer called Fruit                          Co-founder James Grundy says:
         its UK range this year with the launch of     Machine.                                                “We see ourselves as lower-alcohol,
         Pils 0.0% and Weizen non-alcoholic in            Sales director Graham Archibald                      which is entirely different to low. In
         response to market demand.                    says interest in it has gone “through                   our minds, low suggests that the
             Stephan Kofler, sales and marketing       the roof”.                                              abv is the leading factor for what’s
         director of Krombacher UK, concedes              He adds: “Let’s be honest, the                       being served. We prioritise flavour
         that some shoppers and retailers might        choice when it came to the no                           first and foremost, and then work
                                                                                                               extremely hard to achieve this at a
         still need convincing.                        and low- alcohol category was
                                                                                                               sociable strength.”
             “I would tell them to give them a try     pretty dismal up until three or                           Surrey brewer Hogs Back has
                                                       four years ago. It was almost a                         opted for 2.8% abv for its mid-
                                                       badge of shame buying a no-                             strength proposition Little Swine
                                                       alcohol beer.                                           ale.
                                                          “The landscape is massively                            “The starting point is that I’ve not
                                                       different now with some incredible                      yet tasted a 0.5% beer that offers
          Let’s be honest, the choice                  innovation, meaning the choice in                       all the flavour,” says chairman
                                                                                                               Rupert Thompson.
                                                       terms of quality and beer styles on
          when it came to the no and                   offer to consumers is staggering.
                                                                                                                 “They are getting better,
                                                                                                               definitely. But there’s a trade-
          low- alcohol category was                       “The trend for health continues                      off between living with a decent
                                                       to be a big driver of the category
          pretty dismal up until three                 but without the investment from
                                                                                                               flavour that isn’t exactly what
                                                                                                               you’re looking for, and having less
          or four years ago                            brewers in quality, we would never                      alcohol.”
                                                       be where we are today.”

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22    BUYERS’ GUIDE TO MINDFUL DRINKING 2019 www.drinksretailingnews.co.uk

          ANALYSIS: ALCOHOL-FREE SPIRITS

         FUNCTIONALITY IS
                                                                                                                                 and floral flavours; and Joy, a blend of
                                                                                                                                 floral notes and a subtle damiana scent
                                                                                                                                 with a citrus and berry finish.
                                                                                                                                     The drinks have recently been

         THE WATCHWORD
                                                                                                                                 launched into the on-trade and
                                                                                                                                 online retail.
                                                                                                                                     Also new for autumn 2019 is Amplify,
                                                                                                                                 which claims to bring “a unique taste and
                                                                                                                                 strong attitude” to the market.
                                                                                                                                     Like traditional spirits Amplify is
                                                                                                                                 distilled and made with ingredients
         Spirits without alcohol may appear an odd concept, but producers                                                        such as juniper berries, coriander seeds,
         are focusing on delivering NPD with ‘benefits’, says Sonya Hook                                                         angelica root, lemon peel, lemongrass and
                                                                                                                                 ginseng root. The drink is recommended

            T
                                                                                                                                 served with tonic, but it can also be used
                              he idea of a spirit         premium craft spirits and high-quality          Alcohol-free spirits   as a base for a number of classic cocktail
                              being “alcohol-free”        mixers. These two trends have helped            are enhanced by        recipes. Amplify has already secured
                              may not have made           cement a rapid consumer acceptance of           the use of premium     listings in Morrisons stores, priced at £15
                              sense to consumers a        this fledgling category, so much so that        mixers                 a bottle.
                              few years ago, and          since Seedlip first introduced the concept                                 Clare Gibson, marketing director, says:
                              indeed many are yet to      of a spirit without alcohol four years ago, a                          “Amplify is all about making the most of
         discover the concept.                            huge wave of newcomers has emerged.                                    your experiences. Amplifying your senses
            Unlike beer and wine however, alcohol-           In this month alone a number of new                                 without the alcohol, which means you
         free spirits have the advantage of being         products have appeared in this space.                                  are sharper, more in the moment and
         just one component in a drink, with                 Senser Spirits is one of these, and the                             able to take in your surroundings. It is a
         premium mixers working to enhance the            brand currently comprises a trio of 0%                                 great-tasting, non-alcoholic alternative
         spirit’s flavour profile while also helping to   abv “plant spirits” in 50cl bottles, which                             which appeals to the young at heart who
         mask the absence of alcohol.                     the producer says contains active blends                               are thirsty for new experiences. Whether
            And the rise in consumers drinking            of natural botanicals to capture the                                   choosing not to drink or overcome with
         more mindfully – and therefore seeking           “spirit” of the plants.                                                curiosity, Amplify is always a positive
         lower alcohol, lower sugar, cleaner                 The three in the range are: Power, a                                choice. The feedback we have had so far
         ingredients and sometimes alcohol-free           blend of bitter orange, spiced cacao and                               has been fantastic, so we are really looking
         products – has neatly coincided with a           vanilla caramel with a smoked black                                    forward to bringing Amplify to a wider
         cocktail boom and a growing trend for            cardamom finish; Love, which has berries                               audience as we celebrate our launch.”

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