Asahi UK, the owner of brands such as Peroni and Grolsch, believes convenience retailers could significantly increase their sales of no- and low-alcohol beer in 2023.
In grocery multiples, no- and low-alcohol makes up 2.9% of total beer sales, in comparison to impulse stores where it is at 0.7%. Raising sales of no- and low-alcohol beer to the same share as it is in grocery would generate £32m in sales for convenience stores. Divided by the 48,590 convenience stores in the UK, this is a £660 opportunity for each store on average.
Steve Young, Sales Director at Asahi UK, said: “The category is under-developed in convenience stores, but retailers can fix this by stocking just four key products to create a credible range.
“Retailers should offer the number-one brand by value, Heineken 0.0% 6x330ml; the fastest-growing no- and low-alcohol stout, Guinness 0.0% 4x440ml; the number-one craft brand, Brewdog Punk IPA Alcohol Free 4x330ml; and a premium option like Peroni Nastro Azzurro 0.0% 4x330ml, the number-one lager four-pack.”
The brewer noted that 70% of no- and low-alcohol beer sold in impulse stores is in four-packs, with this format growing at 30%. Single bottle is the second biggest segment with 6% of sales, but this area is declining at 7%.
The analysis follows the most successful January on record for no- and low-alcohol products. No- and low-alcohol beer spiked to 4.6% of the beer market in grocery multiples in January 2023 vs 4% in January 2022. Most of the growth is coming from new products, with Peroni Nastro Azzurro 0.0% and Guinness 0.0% adding the most value to the category.
“With increased awareness, media exposure and higher quality NPD, we should expect the no- and low-alcohol category to keep growing,” Young said.
In the 12 weeks to 28.01.23, no- and low-alcohol beer grew by 13.7% vs total beer at 0.6%. Heineken 0.0 lost value share, as did Becks Blue. Guinness 0.0% and Peroni Nastro Azzurro 0.0% were the biggest beneficiaries, both growing their share.
Asahi Europe & International’s ambition is for 20% of its core product portfolio to offer alcohol-free products by 2030.
NAM Implications:
- So, a £660 incremental sales opportunity for each convenience store on average…
- …by moving to mults’ parity on no/low share of sales.
- Seems like a no-brainer….
