FOOD AND BEVERAGE: ZERO BOOZE BREWS

ZERO BOOZE BREWS

AS CONSUMER DEMAND FOR NON-ALCOHOLIC DRINKS CONTINUES TO RISE, MANY HOTELS ARE ADAPTING THEIR OFFERING TO STAY RELEVANT. RUTH HOGAN SPOKE TO FOUR BEVERAGE COMPANIES THAT ARE OPERATING IN THIS SPACE.

A fundamental part of any hotel’s food and beverage offering is its selection of alcohol. Guests have come to expect a list of exquisite local wines, locally-distilled gin, and craft beer as standard. But as more and more Australians adopt healthier lifestyles, many are choosing to moderate their alcohol intake, and are turning to no- and low-alcohol (no/low) beverages to do so. The non-alcoholic drinks segment is booming, and IWSR forecasts that no- and low-alcohol volume in Australia will increase by 16% from 2020 to 2024. It found that 76%of consumers are looking to continue or start consuming no/low beverages.

Big Drop Brewing, which supplies non-alcoholic brews to Hilton Hotel Sydney among others, says the category has evolved greatly in recent years.

Research shows 76% of consumers want to consume no- or lowalcohol beverages

“As expertise and production methods have increased, particularly over the past couple of years, consumers have been given greater choice combined with higher quality offerings,” Big Drop Brewing Country Manager - Australia and New Zealand, Darren West, told HM.

“There’s no need to totally ‘abstain’ on a weeknight or drink a soft drink if you’re driving, because now you can have a high-quality drink, without the alcohol and not miss out on the experience. This has been reflected in category growth too, particularly in beer, where no-low and craft have been cited as the two segments that have arrested total category decline.”

West points to moderation, health and wellbeing, and premiumization as the key trends driving the no/low category.“With no/low, the core difference - beyond ABV - is the added benefit of often being low calories too,” he said.“In fact, no-low has the opportunity to reach and manifest within broader occasions where refreshment is a driver, given the reduction of alcohol and also, particularly within Big Dropbeers, which tend to be half the calories of full-strength beers.”

BIG BEER

One of the major market players in Australian beer is Carlton & United Breweries (CUB), now owned by Asahi Beverages. Today, no, low and mid-strength alcohol beers make up almost 30% of the company’s beer sales – a significant jump from 14% in 2016.

Carlton Zero launched in 2018, becoming the first nonalcoholic beer in CUB’s 180-year history.

“The major marketing spend we put behind its launch changed the non-alc beer landscape in Australia, with the segment growing over 100 times in Australian bottleshops since then,” an Asahi spokesperson told HM.

Big Drop Brewing supplies Hilton Hotel Sydney with alcohol-free beers

“Our range of zero alcohol beers also includes Great Northern Zero, which is now the number one nonalcohol beer in the country, and Peroni Libera 0.0%.”

Asahi says its non-alcoholic beers are performing extremely well, particularly among 25–34-year-olds with active lifestyles. The consumer feedback is that they taste like regular beer.

Moderation is the biggest trend in beer, and Australians are increasingly embracing the responsible drinking message.

-Asahi Beverages Spokesperson

“We have created the best zero-alcohol beer portfolio in the country, which means the moderation trend is an enormous opportunity for us and our customers,” the spokesperson said.

“We have more than half the zero-alcohol beer market in Australia by market share so it’s a leading position.”

Zero-alcohol beer already accounts for about 1% of Australian retail beer sales, according to Asahi, and this is expected to double by 2025.

“Moderation is the biggest trend in beer, and Australians are increasingly embracing the responsible drinking message. They still love a beer; they are just looking for more opportunities to moderate their consumption. This is a great thing, and we are working closely with our hotel customers to ensure we are meeting the changing tastes of consumers,” the Asahi spokesperson said.

ADVANCES IN NON-ALC WINE

When it comes to alcohol-free wines, a number of big brands are getting in on the action. Australian Vintage Limited, better known as AVL, is responsible for the number one selling alcohol-free wine range in Australia, New Zealand, and the UK, McGuigan Zero.

McGuigan Zero is the top selling alcohol-free wine range in Australia, NZ and the UK

AVL Wines General Manager for Australia and NewZealand, Jeff Howlett, told HM that the non-alcoholicwine category continues to accelerate, with salesdoubling over the past year as new consumers enter thecategory each month.

“1 in 2 Australians are now looking to moderate alcohol consumption and 1 in 4 are turning to non-alcoholic wines to do so,” Howlett said.“We are forecasting the total non-alcoholic and non-alcoholic wine category to continue its growth trajectory over the coming years as the moderation trend continues and more consumers enter the category.”

There is some stigma around the non-alcoholic wine category in comparison to other non-alcoholic categories, products are being enhanced to replicate the full-strength counterpart.

INNOVATION FOR INCLUSIVITY

Melbournian start-up Naked Life is Australia’s market leader in non-alcoholic ready-to-drink cocktails in grocery. In fact, the company says it has sold double the number of units of Heineken 0% and the rate of sales of the NakedLife Non-Alcoholic G&T is twice the rate of Gordon 0%. Naked Life Founder, David Andrew, said there is a growing group of young people who indicate not to be drinking at all.

Naked Life is a leader in non-alcoholic ready-to-drink cocktails

“This can be seen in line with an overall health trend, and especially coming out of COVID consumers have deliberately made choice of what they want back in their lives and what not or a little less,” Andrew told HM. Naked Life says taste is the biggest driver of sales.“Historically, mocktails haven’t always tasted great and the options weren’t far and wide,” he said.

“By offering an experience that looks and taste like the alcoholic alternative, people feel included into the occasion and don’t feel they have to compromise, just because they don’t drink.”