The Rooney Anand-led business has claimed it has seen “significant growth” in alcohol-free beer sales with draught gaining bigger margins than packaged variants.
Across RedCat’s estate, which includes Coaching Inn Group and RedCat Independent Pubs, the low & no category is gaining traction, with more guests seeking alternatives to alcoholic drinks.
Beer remains the most popular category, and RedCat has responded by offering a variety of low & no alcohol options – with Heineken 0.0 on draught making the most in terms of sales.
“Heineken 0.0 is the top-selling alcohol-free beer in our group,” says Kiran Quinn, group marketing director at RedCat Hospitality. “It sells between 25% and 30% more than the next most popular option.”
RedCat, which is backed by Oaktree Capital, added: “Where both draught and packaged options are available, the majority of guests opt for draught, and this applies across all the brands in our range.”
Low & no not limited to ‘occasions’
The impact of installing Heineken 0.0 on draught has been immediate. “In sites where we’ve installed it, we’ve seen the biggest growth in alcohol-free beer sales,” the business said. “It’s being consumed throughout the week, with or without food – it’s not limited to any particular occasion.”
RedCat has found that Heineken 0.0 performs best in venues where guests are likely to drive. Breckland Lodge, Kings Head Richmond, the Talbot in Malton, and Pastures Lodge are among the top sellers of Heineken 0.0 on draught. Even in urban settings, the product is proving popular. At the Cross Keys in Nottingham, sales surged following a major £210,000 refurbishment that included the installation of Heineken 0.0 on draught.
As brewers continue to innovate, the quality of alcohol-free beer is improving rapidly as confirmed by RedCat, which said: “Brewers have really nailed it in this space. The fact guests can walk into a pub and order a pint of alcohol-free beer that looks and tastes like the real thing is a game-changer.”
Heineken UK, which has installed its 0.0 offer on draught at 1,700 pubs, said alcohol-free drinks are no longer a niche offering and demand for these products is rising – and added operators who embrace this shift are seeing tangible commercial benefits.
Through its ‘Mindful Choices’ pillar, Heineken estimates there will be a £1bn growth opportunity in the on-trade by 2030, driven in part by the expansion of alcohol-free beer on draught.
Summer is peak for AF sales
Meanwhile, Heineken UK’s ‘Serve Revolution’ platform, which emphasises the importance of elevating the serve to enhance the consumer experience, wants to ensure a pint of alcohol-free beer poured fresh from the tap offers familiarity, quality and value – all key drivers of repeat visits and increased dwell time, the business claimed.
RedCat, which posted strong sales figures in late November last year for its second quarter, said that despite January seeing a spike in alcohol-free sales, summer is actually the peak season for the business.
“Guests want to enjoy a cold beer in the sun and alcohol content is not an essential prerequisite to having that experience,” Quinn noted. “We’ve also seeing strong growth over the festive period, which suggests alcohol-free sales are becoming more consistent throughout the year.”
Sales of Heineken 0.0 are up 11% compared to last year at RedCat, driven primarily by draught availability and the overall low & no category has grown by 19% year-to-date versus the same period last year.
Quinn summarised: “The low & no category is vitally important to RedCat as we’re seeing more and more guests seeking alternatives to alcoholic products.
“With this in mind, it’s essential to offer high-quality alcohol-free versions of our most popular drinks, allowing guests to enjoy the same experience without needing to switch categories.”
