Low&no alcohol: what are the opportunities for brands?

Non-alcoholic drinks have been around for 10 years now. However, the way we see them clearly has changed. Today, more and more brands commit to this approach by creating a dedicated range with a real marketing approach. This market segment currently represents nearly $US10billion in sales, a figure that, according to a IWSR study is expected to climb even higher by 2025.

Let’s look at this underlying trend to understand the opportunities it offers, both for consumers and brands.

What are the differences between zero alcohol, nonalcoholic and low alcohol drinks?

When we talk about drinks "without" alcohol, you need to know that a certain flexibility is permitted. In fact, products with an alcohol percentage up to 0,5% can be considered as "no" alcohol drinks. Thus, if you want a product entirely devoid of alcohol, you have to look for products labeled "zero" alcohol. As for "low alcohol" drinks, they are simply drinks with a lower alcohol percentage: between 0.5% and 8.5% for wine. It should also be noted that these "de-alcoholized" wines will soon have the authorization to display the designation "vin de pays" or "vin de table" on their label.

Elia, Plaimont

Elia by Plaimont

Elia is Plaimont’s new product. Elaborated from the Colombard grape variety, this Côtes-de-Gascogne has the specificity of naturally having a low alcohol content of 9% without having to go through de-alcoholization.

Capped with STELVIN® and ROLLTOP

Consume less, but better

One might wonder where this trend comes from and why it is widely talked about today. In reality, this movement is part of an older approach: consume less, but better.

For Marie Mascré, co-founder and CEO of SOWINE, the idea is to have a more reasonable consumption: "We want to make the most of it while being aware of the importance of taking care of oneself. Our wellbeing no longer occurs through excess but through listening to one’s body." This point of view is shared by Sébastien Thomas and Fabien Marchand-Cassagne, the creators of Moderato, a brand whose purpose is to produce wines with little or no alcohol, but with the same characteristic flavors as regular wine. "We wanted to react to the evolution of consumers expectations. We aim to offer a pleasant wine that will preserve the health of consumers. Our purpose is to maintain the highest quality and to do so responsibly." A high number of low & no alcohol wine manufacturers choose screw caps in order to avoid the risk of cork taint and to keep the aromas offered by a fresh and fruity wine.

Moreover, the figures in the ISWR report do not lie: this segment is becoming increasingly important in our markets, and the trend seems to be perennial. The study is based on data from 10 major markets: Australia, Brazil, Canada, France, Germany, Japan, South Africa, Spain, United Kingdom, and the United States.

In 2021, the sector increased by 6% in terms of volume, with some disparities in the markets. In the United Kingdom, for example, nearly 8.3 million households purchased a low/no alcohol product, which represents 30% of the country’s population! However, it should be noted that beer is included in this statistic.

Besides, the ISWR forecasts that the volume of no&low wines will reach a compound annual growth rate (CAGR) of over 8% between 2022 and 2025. When it comes to spirits, the no alcohol sector is the most popular, with a volume growth posted at about 14% per year. It’s rather the opposite when it comes to wine: the taste of low alcohol wine is perceived to be superior to the taste of no-alcohol wine, as reflected in the growth of both sectors (+20% per year for low wine, +9% per year for non-alcohol).

Thus, given the undeniable growth of this segment, key players are also embarking on the adventure. We can for example point to the success of Gordon’s 0.0, launched in December 2020 by Diageo.

However, will this market completely change consumers’ habits? No. Indeed, the ISWR report is quite clear: for most consumers (43%), the aim is to moderate their consumption rather than eliminate it. Indeed, only 17% of the respondents completely abstain from drinking alcohol.

Fre, Sutter Home TFE

Fre Sutter Home

Fre is a non-alcoholic wine brand created by Trinchero Family Estates. Fre offers a range of 7 still wines and 2 sparkling wines (available in can or bottle).Fre offers a non-alcoholic, gluten-free, vegan and low calorie alternative.

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Arterra wines, On point Collection

On point. by Arterra Wines

With On Point. Arterra wines signs a new collaboration with Weight Watchers Canada. This range was created specifically to meet the demand of the Canadian market which is looking for more "healthy" and low-calorie products. Available in white and read, the On Point range is titrated at 9% alcohol.

Capped with STELVIN®.