Diageo GB, which counts Guinness 0.0, Gordon’s 0.0 and Seedlip among its alcohol-free brands, told The Morning Advertiser there has been a breakthrough in inclusivity during recent times.
A shift in social occasions has played a significant role in the rise in the low & no category, the group said.
“One in three visits to the on-trade are now alcohol-free and moderators are still seeking social occasions out with friends, when drinking low & no options,” Diageo stated.
“There’s a more general sense of inclusion that has been fostered, meaning low & no drinks options are now a key choice at a pub with friends or at a special occasion and we’ve seen an increase in people incorporating low & no alcoholic alternatives as part of alcoholic drinking occasions.”
It added there are other factors that have led to an increase in demand for such products.
“Today’s drinkers are more mindful of how they enjoy alcohol and one of the biggest drivers following the pandemic has been people’s awareness of their health and wellbeing as well as changes to their lifestyle.
“However, with more choice available than ever, while in decades gone by a consumer may have had water or a soft drink to choose from, people now have access to far more low & no options.
Wave of innovation
“Due to a wave of innovation across the category, operators have low & no options across multiple categories to stock for their customers.
“With a wide selection of low & no beers, wines and spirits, along with more sophisticated low & no alcoholic cocktail RTDs or pre-mixes, the innovation has undoubtedly elevated the category, attracting wider audiences and discerning drinkers.”
Over the past few years, low & no alcohol beverages have continued to gain popularity as more adults prioritise reducing their alcohol intake, Diageo said.
It cited research that showed 22m (45%) UK adults are attempting to moderate, with it being a trend particularly strong among those aged 18 to 24 and 11% of those 22m regularly report opting for low & no alcohol options – double the figure from just five years ago.
The business added: “This impressive growth means the low & no alcohol category is fast-evolving and one that consumers are continuing to navigate and explore – particularly as people become more educated about low and no alternatives and more options become accessible in the on-trade space.
“Education is paramount in order for operators and their teams to appreciate the opportunity and the options available so they can capitalise on the increasing demand.”
Despite what some people may think, low & no beverages aren’t confined to specific times of year Diageo said.
While some may expect ‘dry January’ and ‘Sober October’ to drive sales, the business claimed low & no occasions are increasingly mirroring traditional alcohol-driven celebrations in terms of consumption patterns, with sales of low & no drinks peaking during major seasonal events.
Moderation over longer occasions
It continued: “Recognising this trend, operators can benefit by including a more varied low and no drinks selection on menu, enabling people to enjoy social moments, without the alcohol.
Diageo’s House of 0.0% portfolio, which includes popular brands like Gordon’s, Tanqueray, Guinness and Captain Morgan, exemplifies this trend, offering a range of low & no options that allow guests to enjoy a quality beverage, when they choose not to drink.
“One popular trend is the practice of ‘zebra striping’, an alcohol moderation tactic where individuals switch between alcoholic and low & no alternatives during the same occasion.
“It’s a way of moderating alcohol consumption – particularly over longer social occasions.”
According to Diageo, 49% of guests who choose a low & no drink during an outing, will also consume an alcoholic drink in the same occasion. Also known as ‘bookending’ – ending an evening with a low & no drink, demonstrating that consumers are increasingly looking for ways to enjoy themselves while moderating their alcohol intake.
“There is the desire for ‘something special’ with 74% of consumers wanting a drink that represents an elevated adult experience. This presents a significant opportunity for operators to upsell their low & no options and elevate their cocktail menus.
“The reality is that consumers are no longer willing to settle for sub-par alternatives —they want drinks that match the experience and quality of traditional alcohol beverages.
“Brands such as Guinness and Gordon’s have tapped into the increasing demand for quality experiences, with Guinness recently trialling 0.0 on tap in Great Britain, and Gordon’s ‘Mix It Up’ campaign showcasing its Premium Pink 0.0% product alongside the alcoholic product for the first time.”