Tesco has revealed that demand for no and low-alcohol beer in its stores is now so strong that it is growing faster than any other beer type, including on-trend craft varieties.
Sales in the category have risen 40% in the last two years, helped by the introduction of dedicated brands such as Lucky Saint, Athletic Brewing and Days 0%.
Tesco noted that it’s not just the annual Dry January campaign that is inspiring healthier drinking, with the supermarket recording its highest-ever Christmas week demand for no and low beer as sales soared by 43% on the previous year.
The retailer has also seen new shopping patterns emerging, with no and low beer drinkers switching to buying larger pack sizes rather than single cans or bottles as they become more confident in the options now available.
“Interest in no and low alcohol beer is so strong that dedicated brewers have emerged in recent years, which has resulted in more choice for shoppers,” said Tesco No and Low Beer buyer Sam Harrop.
“This has led to great improvements in quality with these specialist brewers inspiring far better ingredients and processes in order to create full-bodied no and low beers that taste authentic. The success of this market has shown us that growing numbers of drinkers seeking healthier brews are prepared to buy no and low alcohol beers as long as the quality is good.”
The Tesco sales data backs up findings in a 2022 No and Low Insight Report compiled by consumer research firm KAM in collaboration with category leader Lucky Saint.
The report found that 55% of UK adults are planning on moderating their alcohol intake in 2023. Awareness of the alcohol-free category is also at an all-time high, with beer leading the way – up from 86% in 2020 to 95% in 2022.
Meanwhile, consumption of alcohol-free is being driven by ‘at-home’ occasions, with 37% of UK adults drinking alcohol-free at home once a week or more. And 54% of consumers said they go to supermarkets to discover healthier new alcohol-free options.
Lucky Saint founder Luke Boase commented: “Wanting to moderate your alcohol consumption has been a growing trend over the last five years, and 2023 is set to become the year that moderation goes mainstream with over 50% of UK adults planning to cut down their consumption.
“Dry January was particularly exciting this year, with over nine million people taking part – it’s a time when our category jumps forward, and the growth is sustained with millions of people continuing to drink No and Low throughout the year.
“Like us, Tesco is betting big on the No and Low category and it shares our view of what consumers are looking for – healthier options and great-tasting alcohol-free drinks that make moderating alcohol consumption easier, which is a great thing.”
NAM Implications:
- Taking these stats at face value…
- (and no reason to challenge?)
- …then members of this category need to constantly update their assessment of relative competitive appeal in such a fast-growing sub category.
- Whilst those classic alcohol brands need to find a way in…
