The beer and cider category continues to stand out in the off-trade, currently worth £5.95bn (Nielsen).
Within the beer and cider category, premiumisation is seeing huge growth.
In the off-trade specifically, the premium and super-premium category now equates to 61.7% of total beer value (Kantar) and this growth is expected to continue.
“In fact, we’re forecasting that 70% of total beer consumption will be in the premium or super-premium category by 2025,” comments Mark Wingfield-Digby, Off-Trade Sales Director at Budweiser. “We have seen this demand across our own brands, for example, Budweiser has driven 23% of total premium lager growth (Nielsen).”
Another category that is seeing huge growth is the no-and-low category. More and more beer drinkers are looking to moderate their alcohol consumption without eliminating it entirely. The no-and-low alcohol category has been going from strength to strength in recent years – now worth £125 across the Off-Trade.
Despite the growth of the non-alcoholic wines and spirits category, beer continues to dominate the no-and-low category, now worth over £100m with a value share of 1.8% of the total beer category (Nielsen). One in ten beer drinkers now regularly opt for an alcohol-free alternative, a figure which has grown by 16% year-on-year (Kantar), this increased popularity is evidence of a wider cultural shift.
Stocking no-and-low options will therefore not only cater to existing customers but will also entice new shoppers in-store. A wide selection of no-and-low options will be key for retailers looking to capitalise on this growing trend.
Food and beer pairings are a great way for retailers to maximise sales. 63% of at-home beer consumption takes place with food, compared to just 58% for total alcohol (Kantar), this presents a significant £85m sales opportunity for stores (Kantar).
“Stella Artois is a must-stock to tap into this growing trend. It is designed to be consumed with food, making it a great option at mealtimes,” adds Wingfield-Digby. “Stella Artois is now enjoyed by shoppers more often with food than as a standalone drink (Nielsen). “Retailers can raise awareness of the range available by merchandising Stella Artois and its alcohol-free version alongside food deals such as charcuterie and cheese.”
Alexander Wilson, Category & Commercial Strategy Director at Heineken, comments: “Heineken® Original has a strong, core following of loyal customers, and the brand has grown in strength over the years and continues to perform well. As Heineken® 0.0 answered demand for a high-quality alcohol-free beer, becoming the leading alcohol-free beer brand in the UK, we introduced Heineken Silver to respond to new and emerging demands from customers, who want a different beer to suit a variety of occasions and experiences.”
An extra-refreshing lager at 4% ABV, Heineken® Silver is made using an ice-cold brewing process at -1°C for a crisp flavour and subtle finish, with a low bitterness of 10 IBUS offering a lighter drinking profile. Heineken Silver will deliver a premium offering and a more accessible taste that will drive appeal and sales among younger adult drinkers.
“We know that innovation is a large sales driver in the beer category, especially among younger adult drinkers who are constantly on the lookout for new products and styles to try,” adds Wilson. “Our research shows an incredibly high intent to purchase Heineken Silver, with 76% of consumers who have tried the product saying they would purchase it again (Kantar). “We believe Heineken Silver will be a real winner among consumers and would advise retailers to adjust their ranges accordingly to feature the innovation in their BWS category line-up.”
Within the beer category, Heineken 0.0 continues to lead the no & low alcohol category with 21.3% share of the beer & cider no alcohol segment while continuing to grow by 11.5% year on year (Nielsen). While lager holds the lion’s share of no alcohol in beer and cider, well-known ale and craft brands are also on the rise within this category.
Shopper penetration has been the primary driving force of growth for no & low for the last five years but there is still a lot of headroom – while beer & cider is purchased by 74.8% (Kantar) of households in the off trade no alcohol is only purchased by 12.3%. Encouragingly, there are signs that no & low alcohol is being purchased and consumed more frequently. While January used to be the high watermark for no/low alcohol shopper penetration, the participation in this category now effectively mirrors total beer and cider throughout the year.
While the sector is performing well, there is still plenty of room for the no & low category to grow in the off trade. The brands winning in this sector are ones that are well-known and trusted by consumers and are meeting their needs for moderation while also delivering on taste. Heineken 0.0 is the number one and fastest growing no & low alcohol brand, accounting for a third of the growth in no & low beer in 2021 (CGA).
As the segment matures, signage and visibility will need to evolve to help shoppers easily navigate the fixture. Heineken is already working with retailers in this regard with activity such as ‘zero zones’ initiatives.
Authentically Italian quality lager, Birra Moretti, has just launched an exciting new addition to the range. The Birra Moretti 440mlx4 can pack will offer shoppers more choice, as they look to stock up on their favourite Italian lager in a new format. The four pack is available in grocery, convenience and wholesale outlets now.
Calli O’Brien, Head of Marketing at Aston Manor Cider, comments: “Larger multi-packs are important to ensure shoppers can keep their home supply stocked up. Product packs such as the Pint cans in our Crumpton Oak‘s four-pack, prove popular but also enable consumers to keep their supply stocked up with hygienic single-serve options.
“A third of shoppers only ever buy cider in cans so it is important retailers stock both bottles and cans to provide choice for consumers. Frosty Jack’s and Crumpton Oaks Cider come in both pack formats and we recommend retailers dual stock plastic bottled products alongside cans, to help attract more customers into stores.”
It’s worth noting that the UK is sensibly planning for tough times ahead. Consumer confidence in the UK is currently at a record low (GfK), even lower than the 2008 global financial crisis. This paints a grim picture of the UK public’s mood and as a result, decision making around expenditure is being heavily impacted.
With this in mind, it is no surprise that 72% of UK households are now impacted by the rising costs of food and drink (Levercliff). 1.3m households are at risk of falling below the poverty line, as analysts report that household costs for families with two children have risen by £400 a month (The Guardian).
“Aston Manor’s ethos is all around affordability. We are here for shoppers, helping them to save with our affordable cider, allowing them to focus their spend on what really matters, adds O’Brien. “Our range provides shoppers with an affordable solution, without trading down on quality, so they can be assured they are not compromising when needing to spend a little less cash on cider.”
Consumers continue to really value convenience and focus on their drink experience at home. From loved favourites such as Crumpton Oaks Apple Cider, through to branching out from wine into perry with ‘new look’ Chardolini, consumers welcome the chance to try something new at home and are more likely to explore different options.
Perry also plays an important role for consumers looking for choice amongst lower alcohol options.
“We know that many consumers perceive perry as a lower ABV alternative to wine. This means we’re seeing more consumers choosing options such as our ‘new look’ Chardolini to enjoy as a relaxing drink with friends, so stocking such products can help retailers drive sales through customers seeking to tap into this trend,” says O’Brien. “We expect this approach to convenience to continue so retailers need to provide a range that offers a variety of chilled drinks for consumers to buy, take home, and enjoy straight away.”
A Kopparberg spokesperson comments: “Due to space restraints, single bottles are key to driving new drinkers into the bay and driving trial, however there is definitely a need for bigger packs, these should be saved for key brands within the category.
What is becoming increasingly evident is that not all alcohol-free shoppers buy into the category purely because they don’t drink alcohol.
Instead, many customers are transient and switching into the category when they plan on drinking less (as opposed to not drinking at all). As such, many alcohol-free occasions happen alongside full-strength ones.
“Where we had previously seen Dry January and Sober October dominate the alcohol-free space, we now see the category growing more than any other in BWS (Kantar) suggesting a year-round affinity with these products through various occasions,” adds the spokesperson. “As we see an increasing number of consumers choosing not to drink at all and a growing base who are actively moderating, the need for a strong alcohol-free range throughout the year for all possible occasions, is more important than ever.”
Kopparberg is the most loved alcohol-free brand in the UK (Savanta) and boasts the bestselling alcohol-free fruit cider with their Strawberry & Lime flavour (Kantar). Alongside this, Kopparberg Strawberry & Lime with lemonade has the highest ROS of any alcohol-free single can Gin (Kantar).
“Mirroring the key products from the alcoholic range and translating this into alcohol-free is key to ensuring consumer needs are satisfied. Interestingly, these products are often bought in the same baskets as their alcoholic counterparts,” says the spokesperson.
“Stocking the brands with the highest penetration is key, as there tends to be a lot of light shoppers within the category.”
From March, Kopparbeg’s 4 pack and 10 pack Alcohol-Free fruit cider packs will have an all year round on-pack promotion which gives consumers the chance to win an E-bike or cash vouchers every month.
Chris Milton, Off Trade Sales Director, Thatchers Cider, comments: “The move towards premiumisation – drinking less but better – has been one of the stand-out trends to hold firm over the last few years. So as shoppers feel the cost-of-living crisis bite this winter, they will be looking to get extra value for money from their purchases. By stocking premium ciders from the Thatchers range your customers will be assured that they’re taking home great tasting, exciting and innovative ciders.
“Shoppers have high expectations of quality, and our advice to retailers is to keep the shopping experience as easy as possible for your customers, so have the cider brands on shelf, readily available, that you know will sell well and are front of mind with customers, such as those in the Thatchers range, from our flagship brands Thatchers Gold and Thatchers Haze, our brand new Thatchers Blood Orange, to our number one alcohol free cider, Zero.”
Thatchers has two of the top 5 apple cider brands in the UK with Gold and Haze. Premium ciders retain their popularity with shoppers, with Thatchers continuing to outperform the cider market, in fact being almost a third up pre-Covid levels. Demonstrating the popularity of the Somerset cider maker, 1 in every 7 ciders sold in the UK off-trade is from Thatchers. The brand is seeing premiumisation above all other trends, driving value and driving volume.
“80% of cider is bought by just one third of shoppers, so there’s a fantastic opportunity for retailers to increase their sales and bring cider to a wider customer base, with exciting styles of cider, and pack formats that make it easy for them to shop,” adds Milton.
“Don’t just think of cider as a summer drink – it’s refreshment all year round, and should be an important part of your cider fixture and chiller, in both bottles and cans, throughout the year.”
“An important part of every drinks fixture should be alcohol-free options and retailers shouldn’t neglect cider drinkers here,” says Milton. “The popularity of alcohol-free options continues to rise, and will play a key role in drink selection in 2023. Shoppers know there are now great tasting alcohol-alternatives readily available, and that’s why retailers shouldn’t compromise, and should have the UK’s number 1 alcohol-free cider, Thatchers Zero, on their shelves. Made to the same high standards as all the ciders in the Thatchers Range, Thatchers Zero meets consumer expectations on taste and quality, but without the alcohol.”
Tom Smith, Marketing Director – Europe, at Accolade Wines, comments: “Beers, wines and spirits (BWS) is currently the fastest growing category within convenience and still wine is currently worth £1.3 billion within the traditional convenience channel. Wine shoppers are looking for big brands they trust, a variety of price tiers and formats and occasion-based inspiration.
“With value for money a pressing concern for shoppers in the months ahead, we expect key origins, sweeter profiles and Rosés to maintain popularity as we head into the summer. The biggest volume of wine sales within convenience remains from the core price range, £6-8, and these should be at the heart of any retailer’s wine category.”
Zero alcohol wine is in 28.2% YOY value growth (ahead of still wine), now worth over £39m, delivering 0.6% of the total category (Nielsen). This is driven by non-alcohol sparkling, which accounts for 38% of total zero alcohol wine value.
The last couple of years has seen a rise in low-key home occasions (Nielsen), which served as an opportunity for consumers to switch from soft drinks and opt for alternative low and no options. There is much more awareness now from consumers on low/no alcoholic options, which has been driven by NPD from big names in the industry. More than a third of UK adults have now consumed a low or no alcoholic drink at home, and it is even higher when you just look at Generation Z and Millennials, who have been leading this trend in recent years (Kam Media).
Hardys, the UK’s number one wine brand, has launched Hardys Zero, a new non-alcoholic range that utilises cutting-edge de-alcoholising technology.
Available in three classic varieties – Shiraz, Chardonnay and Sparkling – Hardys Zero aims to make wine accessible and enjoyable for all, no matter the occasion. It offers a quality, no-alcohol experience, with lower sugar and superior taste compared to competitors.
Accolade Wines has first-to-market access to this world leading de-alcoholising technology, Zero Tech X. As a result of the new, gentler process to remove alcohol, Hardys Zero wines retain more of the aroma, body and flavour of full-strength wine and require less sugary additives versus traditional de-alcoholising techniques.
Zero alcohol wine is in 28.2% YOY value growth (ahead of still wine), now worth over £39m, delivering 0.6% of the total category. This is driven by non-alcohol sparkling, which accounts for 38% of total zero alcohol wine value.
The Hardys brand will give consumers, who are moderating their alcohol intake, the confidence to try these unique, great-tasting wines.
Echo Falls, the UK’s number one fruits wine brand, introduced a fresh flavour to its popular Fruit Fusions portfolio with new Echo Falls Orchard Fruits.
Perfect for a cosy night in with friends or getting ready for a night out, the blush pink wine is inspired by an orchard walk, with perfectly picked flavours of apple, plum, pear and subtle notes of spice.
Launched in September, Echo Falls Orchard Fruits (9% ABV) is aimed at the brand’s younger (aged 18-30), female audience, who enjoy fruitier, higher ABV options when socialising.
There is high crossover between purchasers of Echo Falls and fruit ciders, with this NPD aiming to give shoppers a reason to continue to select Echo Falls when looking for orchard fruit flavours in-store.
B.INK, the new wine brand from Accolade Wines, expanded its collection of vibrant and fruity, contemporary wines with the launch of Rosé and Chardonnay editions.
Available across grocery and convenience, the vibrant wines are sold in B.INK’s impactful, paint-splashed bottle design, and aim to introduce young professionals to wine. The innovation focusses on two of the top-selling varietals in the market.
Chardonnay is the third largest type of white wine in the UK, worth £467m , and makes up over a third of B.INK’s target consumers spend on white wine. B.INK’s South Australian Chardonnay is a medium to full bodied wine, combining vanilla and toasted hazelnut flavours with rich peach and citrus, before finishing with a creamy mouthfeel.
Rosé blends are the highest value rosé varietal, worth £121m, and are a popular choice for B.INK’s younger audience. This South Australian rosé offers long-lasting, sweet fruit flavours, mixing strawberry, guava, and citrus with hints of red berries.
Sandra Brunet, Marketing Director, Campari Group UK, comments: “We are seeing consumer confidence falling at an accelerated rate, with the rising cost of living the number one concern for 46% of Brits. As such, 38% of consumers are becoming more observant of pricing and sticking to an allocated budget, and 34% of shoppers are looking to buy more products on a promotional offer – an important consideration for retailers as they seek to offer a budget-friendly beers, wines and spirits shopping experience.”
Refreshing and simple to make, Aperol Spritz is a must-have serve for consumers and a must-stock for retailers. With recent research showing consumers are increasingly seeking drinks that can be easily replicated at home, simple serve cocktails became ever more popular in 2022 and look set to continue on this trajectory.
Served over ice, the Aperol Spritz is a simple combination of Aperol, Prosecco, and soda water, garnished with a slice of orange. With an iconic orange hue and coveted status as the best-selling branded cocktail in the UK and the world, the Aperol Spritz is set to be a strong sales driver for retailers.
“Retailers should look to stock all three core Aperol Spritz components as part of their beers, wines, and spirits repertoire, signposting their customers to the easy-to-create cocktail recipe,” adds Brunet. “To go one step further, they should cross-merchandise in-store, such as displaying Aperol and Prosecco together to inspire customers and help boost basket spend. Another way to bolster this offering is to suggest complementary Italian light bites, such as cured meats and olives, to help create a traditional Aperitivo experience in store.”
With rum’s popularity soaring, and almost 1 in 4 consumers drinking rum in cocktails, this spirit increasingly provides a growth area for retailers.
“The rum category has seen a substantial 38.4% increase in sales in the UK Off-Trade since 2019 so retailers should look to capitalise on rum’s potential in the spirits category by prominently stocking a range of products,” says Brunet. “This includes consumer favourites and premium, well-known rums, such as Wray &Nephew – named a must-stock rum for the convenience channel.”
Rum also has a clear place in the at-home cocktail trend, helping to position it as a versatile spirit with broad consumer appeal. An authentic Jamaican rum punch is set to be a crowd pleaser this summer, as well as a winner for retailers. Made with pineapple and pomegranate juices and Wray & Nephew (63% ABV), the rum’s complex and distinctive flavour adds a unique character to the cocktail – and a little goes a long way, adding to its consumer appeal.
Johnny Dennys, Head of Brand and Trade Marketing, Mast-Jägermeister UK, comments: “With the cost of living rising, consumers are tightening the purse strings and looking to make their money go further. This can be seen with the substantial growth of the Big Night In before the Big Night Out occasion, with spirits remaining a key focus for this occasion. This makes the Big Night In a key opportunity for retailers to boost spirits sales as consumers look to purchase their favourite spirits such as Jägermeister. Jägermeister is the UK’s favourite shot brand, best served ice-cold, chilled to -18C, straight from the freezer.”
Price-marked packs offer reassurance to consumers that they are getting good value for their purchases, whilst contributing to an overall positive price perception. This encourages repeat and impulse purchases as consumers believe they are getting the best price possible for the product, which is particularly important as the cost of living rises. Jägermeister posted positive growth across its entire range of price-marked packs, including the 20cl format at 14.0%, 35cl 4.3% and 50cl at 18.0%.
At-home cocktails have seen a surge in popularity, becoming a trend that is here to stay, and a key occasion retailers should target to drive sales. Whilst Jägermeister is best served as an ice-cold shot, served at -18C straight from the freezer, it can also be used to make great-tasting cocktails.
Jägermeister Cold Brew Coffee (ABV 33%), is the brand’s most recent launch and sees the classic Jägermeister recipe of 56 herbs and spices expertly fused with cold-brewed Arabica coffee and just a hint of cacao to create a new Jägermeister experience. Coffee remains a popular flavour among consumers with more than 24 million (Kantar) households in the UK buying coffee. Jägermeister Cold Brew Coffee is best served at -18C (out of the freezer), offering consumers an alternative Jägermeister shot with a barista touch.
Studies show that 61% of consumers are drinking at home. Jägermeister is one of the top six spirits brands most often consumed at home, with 27% drinking the brand whilst watching sports on the TV and 30% when celebrating an occasion such as a birthday or important event (Kantar).
“Consumers look for convenience when making their spirit purchases,” adds Dennys. “For retailers, it is important to stock a variety of formats to meet all shopper missions so stocking a range of premium well-recognised brands, such as Jägermeister, as well as limited editions or new releases, is vital when looking to drive sales.
“In order to drive sales, retailers should consider building a clear display that showcases premium spirits, such as Jägermeister. Visibility is key in order to not miss out on incremental sales, with consumers typically only purchasing what they can see. Use engaging POS relating to any recent campaigns or NPD in order to maximise brand awareness and boost basket spend. Placing key SKUs such as the Jägermeister mini 2cl bottles by the till point will drive these impulse purchases and increase basket spend.”
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