8 minute read
The Zero Heroes of Beer
WHEN MEGA-GINORMOUS SCOTTISH CRAFT BREWERY BREW DOG LAUNCHES AS A WORLD’S FIRST, AN ENTIRE BAR THAT IS COMPLETELY AF (ALCOHOL FREE… NOT WHAT YOU WERE THINKING!), IT IS A DEFINITE SIGNAL THAT OUR DRINKING CULTURE IS EXPERIENCING A SEISMIC SHIFT. OF COURSE BEER IS A MAJOR FEATURE WITH 15 TAPS POURING A RANGE OF 0% ABV, FULL-FLAVOURED BEER OPTIONS. THAT SAID, THEY HAVE ALSO SOURCED A NUMBER OF ALCOHOL-FREE CIDERS AND SPIRITS AS A COMPLEMENT TO THEIR BEER OFFERING. THIS IS A MAJOR INVESTMENT IN AN ENTIRELY NEW ONPREMISE OFFERING, AND PERHAPS A SIGN OF THINGS TO COME…
Words Kirrily Waldhorn
Advertisement
Given that over the past couple of years, we have been witness to a varying range of categories serving us zero alcohol alternatives, with the UK’s Seedlip probably one of the first to seriously hit the market and therefore have become one of the most widely recognized, Brew Dog’s move is not surprising. As a result, this has earned the founders of Seedlip & the Brew Dog gang, the reputation as being real innovators in what is evolving into the grown up version of the ‘AF’, ‘zero-alc’ ‘no-alcohol’ category.
There are many varying factors why vast numbers of drinkers are steering towards zero-alcohol options. When those drinkers who are actively participate in alcohol free months such as Febfast, Dry July and Sober October, this can equate to a quarter of the drinking year. Many elect to participate in these programs to give themselves a rest from the booze and a much needed re-set, a conscious un-coupling from booze, if you like. When it’s as significant as three months a year, these abstainers are absolutely going to be seeking a more palatable, more adult option than the standard lemon, lime and bitters, lime and soda or soft drink. Others steering away from alcohol simply can’t drink or choose not to for a whole plethora of reasons, and then there are our highly appreciated, much loved designated drivers for whom we have an obligation to do everything possible to ensure they last the distance, and get us all home in one piece (watching everyone else in their various stages of inebriation is entertaining for only so long).
When looking at global trends across the low to no-alcohol beer segment, drinkers around the world have spoken loud and clear. According to a report produced by Fact.MR, the category is estimated to grow at a rate of 7% over the next few years with the global non-alcoholic beer market predicted to be worth close to $42billion AUD and up to 5% of the total beer
category in value. These future forecasts are significant and cannot be ignored.
Leading drink market analysts, IWSR also recently published a report stating that the beer category in the UK is leading the zero alcohol movement which, whilst only accounting for 2% of the beer market, is the fasting growing beverage segment, driven primarily by 25-34 year olds who have grabbed onto the health and wellbeing trend with gusto. That said, many other demographics are also embracing the concept of zero alcohol options within their repertoire. IWSR also highlight that product innovation is going to be a key driver in “propelling sustained interest in the category” and that “the real potential of this segment’s growth will be driven from the on-premise”.
Locally, there are a handful of breweries, large and small, tapping in to the AF beer trend. When Carlton Zero hit the shelves about 18 months ago, it was soon followed by Heineken Zero. Both of these brands have dominated the sales of zero alcohol beer and we are yet to see other international brands such as Peroni, Kronenbourg 1664 or Budweiser who all have their own non-alcoholic versions, launch into the Australian market. Coopers, as players in the zero alcohol beer segment were definitely ahead of their time and have been producing their ‘ultra-light’ 0.5% (legally, alcohol free can have up to 0.5% abv) Birrell for quite some time, with it ranged primarily in supermarkets! With the advent of this new category within traditional alcohol channels, Coopers have had some great success by making in-roads into the off-premise trade.
CUB, brewers of Carlton Zero told us, “The no alcohol beer category grew around 20 times in the first year after Carlton Zero’s launch, with about 75 cents of every dollar spent on no alcohol beer spent on Zero. Our current projections have no alcohol beer reaching 2% of total beer sales by 2025.”.
Darren McKenzie, Category Manager – Commercial Beer at Dan Murphy’s has seen that “local brands such Carlton Zero have sparked interest and reinvigorated the category in addition to global brands such as Heineken and Peroni entering the non alcohol arena within the Australian market”.
For the Germans however, all this fuss about no alcohol beers seems quite ridiculous given they have been brewing 0% beers for years. The German Association of Brewers state that appx 1 in 15 beers consumed in Germany don’t contain any alcohol and the 1,500 breweries in Germany are producing between 400-500 alcohol free beers. Famous German breweries including Erdinger, Weihenstephaner, Holsten and Clausthaler are all distributing their alcoholfree beers in Australia.
Europe was interestingly the inspiration for Australia’s first alcohol-free craft beer brand, Sobah. Co-owner of Sobah, Clinton Shultz, spent time in Europe where he found it commonplace to order non-alcoholic beer at a bar or restaurant. Launching in October 2017, Sobah produces a core range of three different beers all of which incorporate native ingredients as a proud nod to his Aboriginal heritage, including their Lemon Aspen Pilsner, Finger Lime Cerveza and a Pepperberry IPA. Complementing the Sobah core range is an ever-evolving line up of limited release beers, proving that Sobah are serious about being a player in the Australian craft beer market. They are also the first to create alcohol-free beers that would be at home in any crafty venue.
Whilst there is a lot of noise and buzz around non-alcoholic beer in Australia, Clinton believes there is still a lot of work to be done around shifting the mentality of Aussie drinkers to truly embrace the AF movement. He goes on to say that pretty much on a daily basis when he is presenting the range of Sobah beers, he is greeted with, ““is that actually a real thing” or people, “just laugh”. However, whilst the first two years of business were spent working hard on “shifting those mentalities”, the last six months has definitely been a busier time in the business. Clinton puts this down to
the awareness and growth in the overall health and wellbeing movement, almost piggy-backing the many ‘conscious-choice’ food options such as gluten free, vegetarian and vegan that have been well and truly embraced by Australians. He believes that as with food, “Australians have developed a more mindful perception of what we are consuming in the beverage space, though overwhelmingly, the majority of Australians are still fixated on socialisation having to involve the consumption of alcohol”.
Darren McKenzie, Dan Murphy’s, tells us that he has seen non-alcoholic beer as being, “one of the fastest growing sub categories within beer over the past 12 months”. He goes on to say, “Whilst there has always been a core loyal base of customers, as new beer entrants enter the market so have new customers who are looking for beer alternatives. The customers is looking for ‘better for you’ options, and looking to moderate their intake”.
So, who is consuming zero-alcohol beer? As we might have expected, the baby boomer generation has embraced zero alcohol options and generally healthier options overall as they look to extend life through better for you alternatives, Clinton Shultz from Sobah also revealed that, the 18-30 demographic are “choosing not drink alcohol, which is driven by this age group being more health conscious and focused”. Those lagging in adopting zero-alc into their lifestyle… well, unlike the research coming out of the UK, in Australia, it appears that it’s the 30-50’s who are yet to really embrace this trend. Given these years tend to be highly social, driven around work, home and family, it’s not all that surprising that this demographic are holding on fully to their alcoholic options.
Can the zero-alc, AF, non-alcoholic beer segment get to 2% of the Australian beer market? According to Darren McKenzie from Dan Murphy’s, “given the double digit sales growth within this sub-segment, against the backdrop of flat mainstream beer growth, it is not surprising that more brewers are looking at adding non alcoholic beers to their repertoire of products. It’s not only the large multinationals who are investigating in the sub-category, craft brewers are also developing non alcoholic and lower ABV product alternatives for their customers.” He goes on to predict, “We anticipate this trend to continue, adopting similarities to such global markets as Europe who have been offering quality non-alcoholic beer options to consumers for decades, suggesting continued growth over the next 12 months and beyond, will increase customer penetration enabling the sub-category to surpass 2% share of total beer sales.”
CUB are in agreement, stating, “Australians drinking habits are shifting and they’re asking for more options to modify consumption. We are giving consumers the freedom to choose what they want to drink, no matter what their lifestyle.”
Clinton Shultz is also positive but still believes that there is a way to go in terms of changing stereotypes and removing some of the ‘Aussie’ stigma that can be associated with no-alcohol options.
I think we can safely say that zeroalcohol beers are very much in their infancy in Australia and have plenty of scope for growth both within the On and Off Premise and that to write off the alcohol-free beer category, could be at a brewery’s peril. This is definitely an exciting, “watch this space” segment that by all predictions will be taking over some shelf & tap space in the very near future.
SPIRITS REPORT
