The standard of low and no alcohol drinks is getting better all the time, and it has become part of many consumers’ repertoires, whether they abstain from alcohol completely, or are choosing to moderate for health or other reasons. The choice, availability, and standard of no and low is now excellent, and whether in on or off trade, almost all outlets have multiple quality offerings.
Here, Jo Taylorson, head of marketing and product management at Kingsland Drinks, shares her insights and predictions for the no and low alcohol drinks sector and why both established and challenger brands should take note of this buoyant, growing market.
How low can you go
There is a proliferation of no-alcohol products on the market, especially in zero-proof variants of well-known parent brands. While many earlier non-alcohol spirits were clear gin-style alternatives, there is now a much wider range of no-alcohol alternatives including both no-alcohol rum and no-alcohol tequila.
Bevtrac consumer data from IWSR shows year-on-year increases in the no-alcohol drinker population in the UK. The no-alcohol market is expected to grow at a +4% volume CAGR, 2023-2028, while the no and low alcohol segment is expected to add incremental value of £0.8bn by 2028 (IWSR).
Growth rates of the no and low alcohol segment outperformed the overall UK TBA market, partly driven by the ongoing consumer trend for moderation as well as excise duty changes.
At Kingsland Drinks, we have been aware of the moderation and abstention trend for a number of years and our offering in these areas has developed significantly, to ensure we stay ahead of the game.
We started packing non-alcoholic wines and spirits in 2019 and we are now responsible for developing and launching some of the market’s leading brands. We currently blend and bottle non-alcoholic gin, rum, whisky, tequila, and still and sparkling wines, using world class technology and controls to ensure the highest possible quality assurance standards.
We also have an on-site NPD lab that is best in class at developing no and low spirits and made wine – our technical teams work alongside brand owners and customers to develop their non-alcoholic and low abv offering.
Call of duty
The rise in duty has ensured it’s in everyone’s best interests to bed in low and no alcohol brands for the long term. It’s good news for the industry, who have responded with a wave of innovation that excites consumers. Importantly, this segment is getting better all the time. In the last 12 months we’ve seen wine and spirits producers up their game and elevate the taste the credentials of the liquid.
This sector is set to soar, as lower and no abv wines and spirits earn their place on fixtures and consumers respond by integrating into their shop. However, quality will be key and it is important style, substance and price work hard together to nurture growth in this segment and ensure it reaches its potential.
No and low wine
Wine is a more challenging product to develop in no alcohol versions than spirits or beer. The nature of wine production means that a wine is made naturally, with alcohol, and then the alcohol is stripped out to make a no alcohol version. That in turn can significantly impact the taste profile and mouthfeel.
There are some very good options out there, but not as many as in the beer and spirits categories. Producing in this manner also naturally adds cost, as the wine is made as normal, and then an extra process is required. This means often a non-alcoholic version could sit on shelf at the same cost or at a premium to an alcoholic version (despite duty differences) which is not necessarily in line with what consumers would expect.
Lower alcohol wine is a different matter. Wine can be naturally lower alcohol from certain regions and countries, and with small interventions in the grape growing and winemaking, it is possible to make excellent quality wines at lower alcohol. They’re often front of mind for consumers who are on the hunt for a lighter style wine to enjoy, be it for a sundowner with friends, turned into a refreshing spritz or to unwind with after work.
Andrew Peace in Australia is an excellent example of this. The popular brand expanded its UK portfolio of Australian wines and introduced a range of new lower abv skus. Maintaining the excellent value and quality Andrew Peace is well known for, the wines tap into the trend for lighter wines, while addressing recent duty changes the wider alcohol industry is navigating. Andrew Peace’s UK portfolio of wines now includes lower abv Chardonnay and Shiraz, both at 11% abv, which allow consumers to moderate slightly while still experiencing an excellent quality wine.
The trend toward lower-alcohol beverages is one driver behind the popularity of canned wine spritzers, offering consumers more options for moderation and lower calorie options which aligns with consumer demands for healthier options. Last year, eco-wine brand The Hidden Sea launched Spritz Rosé and Spritz Pinot Grigio cans with its core consumers in mind and to tap into the RTD and moderate drinking trends. At 5% ABV for the 250ml cans, the products offer shoppers a mid-strength, refreshing and premium spritz option in the canned wine market.
We have worked with wineries across the world to develop 8 to 11% wines, that are naturally lower in alcohol and therefore have the same great taste and mouthfeel. These wines feature across our portfolio and are supplied to both retailer partners, our own brands and in our on-trade offering.
In summary
Contemporary drinkers are moving away from sweet, sugary alcohol-free wines or spirits, and looking for satisfying, stylish grown-up drinks that don’t compromise on taste. In the past, non-alcoholic drinks were an option for those who do not drink alcohol, such as designated drivers or pregnant people, but this is no longer the case and we expect these drinks to become even more mainstream, with creative zero alcohol spirits and wine-based drinks using botanicals, herbs and spices, citrus and exotic fruits.
We’d encourage producers, manufacturers, retailers and brands to continue to innovate in this area as we expect more outlets and retailers to dedicate more space to no and low alcohol drinks – bringing much needed visibility, accessibility and excitement to the category.
We work closely with our brand partners on research and development into no and low alcohol wines and spirits – from liquid development, branding, bottling, contract packing and logistics. Our technical team offers expert capabilities in no and low alcohol solutions, flavour development, and new product launches, and our production and operations teams can implement and manage the full process from start to finish, or provide support alongside existing suppliers.
For further details, contact info@kingsland-drinks.com or visit the website: www.kingsland-drinks.com
