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Softer drinks aisles

19 : 12 : 2016 Millennials : Party-Totallers : Tesco

UK – Tesco is becoming an important advocate for non-alcoholic and low-alcohol beverages.

  • The supermarket will be rolling out a greater variety of non-alcoholic and low-alcohol products from mid-March 2017
  • Non-alcoholic craft ale St Peter’s Without is one of the products to be stocked
  • The supermarket will designate a section of its stores to low-alcohol and non-alcoholic products

Following a recent study by Heineken indicating that 75% of Millennials limit the amount of alcohol they consume on the majority of nights out, this shift in attitude towards drinking is now being reflected by retailers.

Tesco will be the first supermarket chain to dedicate an entire section of its stores nationwide to a new selection of low-alcohol and non-alcoholic products, such as St Peter’s Without, which is the UK’s first alcohol-free craft ale. The non-alcoholic ale was launched in August 2016 in response to consumer demand for an alcohol-free drink with a similar taste to the alcoholic version.

‘We have long recognised the growing demand for alcohol-free options among consumers,’ says Steve Magnall, CEO at St Peter’s Brewery. ‘Tighter regulations and health concerns, as well as an increase in the teetotaller population are changing the drinks sector, and we feel this is a category that will grow and grow in the years to come.’

A recent study by the brewery AB InBev UK helps to quantify this growing demand, revealing that 18% of Londoners drink non-alcoholic beer on nights out, while 10% of British women drink it on a weekly basis.

In the UK, non-alcoholic drinks are defined as those that contain 0.05% alcohol or less, while a low-alcohol beverage contains between 0.5% and 1.2% alcohol.

The Big Picture

As we explored in our Party-totallers tribe, consumers are now less captivated by alcoholic drinks than they once were, and brands such as Seedlip are catering for this tendency by producing exciting alcohol-free alternatives.