UK: Alcohol free and low alcohol beer sales rising substantially

Sales of alcohol free and low alcohol beers are rising substantially as more people choose to drink it as a lifestyle choice, This is Money reported on October 19.

Non-alcoholic beer sales were up 58 per cent this summer compared to the same time last year, according to recent figures from Kantar Worldpanel.

Separate data from market research firm Nielsen show that more than 43 million pints of non-alcoholic beer were drunk in the last year, up 27 per cent on the previous 12 months.

It comes as more Britons shun alcohol in an effort to improve their health and save money - while zero per cent offerings improve.

This year, Adnams - the Southwold-based brewer and distiller - have gotten involved, releasing an alcohol free Ghost Ship beer.

Andy Wood, chief executive of Adnams, says: 'Off a low base we are seeing an increase in the sales of non-alcohol and alcohol free beer by 25 per cent while others in the sector are seeing flat or low levels of growth.'

Wood said there are a number of reasons for the boost in alcohol free sales, but highlighted that millennials were taking the lead by shunning booze.

'They are choosing not to drink but still go out to socialise,' he explained.

Wood admitted that people are increasingly making healthier choices and are more health conscious thanks - in part - to television programmes, such as Adrian Chiles' BBC documentary 'Drinkers like Us.'

He adds that campaigns such as the Public Health England's DrinkFreeDays and Go Sober for October, which encourages people to go booze free for the 31 days of October, have also brought it into the limelight.

Additionally, the trend towards increased zero per cent beer sales is a shift towards the demise of 'toxic masculinity' and men feeling less pressured to be out drinking.

Price sensitivity could also be a reason why people are forgoing alcohol in favour of the zero per cent versions, as the price of a pint continues to surge.

In London, it is commonplace to surpass the £5 barrier for a beer. At a time of higher living costs and slow wage growth, it is hitting the pub industry.

How much beer duty you pay depends on the beer's strength or 'alcohol by volume', see table above.

'This product doesn't get taxed so in that respect, it can be cheaper. Beer producers are able to pass on the cost saving to the consumer,' adds Wood.

Low alcohol and non-alcohol beers tend to be cheaper than alcoholic versions.

Adnams currently sells its alcohol free Ghost Ship eight pack bottles (500ml) for £11.99 while its regular Ghost Ship eight pack is £14.49.

Tesco - Britain's biggest supermarket chain - meanwhile also sold its alcohol free lagers for less than their alcohol versions.

For instance, its Heineken Lager five per cent 330ml six pack is sold online for £5, while the Heineken 0.0 lager beer 330ml six pack is being sold for £4.

Wood believes this trend in drinking alcohol-free beer will continue.

'I don't see millennials changing this habit very soon. The health benefits will also ensure that this continues.'

The Ghost Ship is only 21 calories per pint, the brewery says.

Wood added that producers have also improved on the taste and quality of alcohol free beers, giving their alcoholic competitors a run for their money.

'We're now producing great tasting beers without the alcohol,' he said, adding that it's no longer a grudge purchase.

'It used to be a distress purchase but the technology has improved and the industry is now taking this sector seriously.'

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