LOW+NO Understanding the attitudes and behaviours behind this growing drinking occasion and what we need to do to take advantage of the category
And welcome to the KAM Media insight report looking into the low & no alcohol category within both the UK on and off trade This report includes exclusive research, conducted by KAM Media, with 1,000 UK adults (+18) surveyed online, alongside interviews with 163 UK publicans. Both carried out in December 2019. In addition to the robust research, the report is supplemented by insight and analysis from leading industry experts including those from KAM Media, plus case studies and examples. Combining to provide a unique assessment of the underlying trends and possible opportunities of this rapidly growing category.
Contents 1. Introduction and foreword 2. Current consumption behaviours 3. Low & No consumption habits 4. Low & No in the on-trade 5. Low & No + Sport in the on-trade 6. Low & No in the off-trade 7. Barriers and perceptions around the Low & No category 8. Price perceptions and propensity to purchase 9. Low & No + CBD 10. The publican view 11. Executive summary
Katy Moses F O U N D E R
In a short space of time, the value of the ‘low & no’ category has grown rapidly. In the on trade, sales of low/no alcohol beer are up around 28%, with non-alcoholic sprits up 400%+. In the off trade in the past year, £43 million was spent on low/no-alcohol beers. KAM Media’s ‘Low + No’ insight report contains essential knowledge and insights for suppliers and operators, in both the on and off trade, who want to get ahead of the game and maximise sales in this new, growing category. Whether you are a supplier, operator or wholesaler, this report will help you to future-proof your drinks range, through understanding current brand and product awareness across both on and off trade channels for low & no. Understand the right proposition to drive sales in your business, discover the underlying consumer behaviours and attitudes that are driving the demand for low & no products and recognise the path to purchase for consumers in both the on and off trade. Knowledge of the category is currently limited, but the growing demand for a credible low and no range is not going away.
Current consumption behaviours
62% of UK adults claim to consume 5 units of alcohol or less, on average, per week. This matches with other consumer data which shows the growing trend of moderation. Not just with alcohol, but across other food & drink categories, which, in excess, are seen as damaging to health and wellbeing. 1 in 4 consumers claim to not drink any alcohol at all. Whilst it’s widely reported that millennials are driving the trend towards alcohol abstinence as a lifestyle choice, our research suggests that, in fact, teetotalism is relatively consistent across all age groups. Previous KAM research showed that it is Generation Z who over-index in teetotalers, with 2 in 5 18-24-year-olds claiming to consume no alcohol. As with the previous data, this also suggests that deep down we know that we probably drink too much and that it’s a bad thing so, whether subconsciously or consciously we underplay the amount we drink when asked. This sort of consumer behaviour plays into the hands of low & no as it suggests that people would cut down if more viable ‘grown up’ alternatives to alcoholic drinks were to become readily available.
Are we becoming a teetotal nation? Source: KAM Media – Low and No report Jan 2020
Of those who drink alcohol, 40% say they will be reducing their consumption in 2020 10%
20% 75% 55+
Q. Are you planning on reducing your alcohol intake in 2020?
With 40% of consumers looking to cut down on their alcohol intake even further during 2020, there’s a real opportunity for brands and operators to improve how they cater for these consumers. Whether they consume some alcohol, or none at all, consumers are looking for a wider choice from both operators and retailers to cater for their evolving needs.
The healthy consumer space is truly diverse, ranging from fitness to food ingredients. Over the last few years, we’ve already
seen the impact that this growing trend has had on the food industry, with many ‘traditional’ categories such as confectionery, crisps and soft drinks under increasing pressure from emerging brands offering a healthier and more ‘natural’ choice for
consumers, without necessarily dampening the experience. The alcohol sector is on the cusp of a similar trajectory, and it will be the brands who best understand the consumer motivations and behaviours behind this trend who will be best placed to capitalise on the opportunity that it represents.
Are we planning on reducing our alcohol intake in 2020? Source: KAM Media – Low and No report Jan 2020
Q. Why are you planning to reduce your alcohol intake in 2020?
To save money
To lose weight
To maintain a
To improve my
So I have more
To sleep better
energy to do other thin gs
What are the motivations to drink less alcohol in 2020?
36% of UK adults will be attempting either ‘Dry January’ or ‘Go Sober for October’ in 2020. To improve their health and to save their money– the two main reasons consumers are planning on reducing their alcohol consumption in 2020. People’s lives are becoming increasingly busy and stressful and whilst enjoying a drink
and spending time with friends and family in the pub or at home over dinner is a great way to offset the day's struggles and strifes, consumers are also keen to ensure that they make time for other things in life. This is why there’s a growing trend for moderation. Consumers will increasingly be looking towards drink options which allow them to both relax and
have fun, but also ensure that they have the energy and time to sleep better, and achieve the other ambitions they have in the days ahead– be that running a marathon, taking up a hobby or spending quality time with the family, low & no is giving consumers a better choice. Source: KAM Media – Low and No report Jan 2020
23% of consumers believe that there are no specific health benefits to low and non-alcoholic versions of alcoholic drinks With the main reason for choosing to drink less alcohol centering around health concerns, it should be a warning to brands that 1 in 4 consumers donâ&#x20AC;&#x2122;t believe there to be any specific health benefits to low & no drinks. This suggests that there is a risk that consumers would choose to switch to other categories rather than choose a low & no alternative. Brands should amplify the noise around any health benefits, whether that is a reduction in calories, sugar, carbs or any other facts. Furthermore, they should play on any added benefits that these drinks can provide, such as added energy or relaxation. Through understanding the underlying consumer behaviours that are driving the decision to drink less alcohol,
What are the perceived health benefits of low & no drinks?
brands can then better understand the levers to pull upon in order to encourage consumer trial and build brand loyalty.
Q. Which of the following specific health benefits do you think are associated with low and non-alcoholic versions of alcoholic drinks?
Less cholesterol Source: KAM Media â&#x20AC;&#x201C; Low and No report Jan 2020
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Understanding the attitudes behaviours support of KAM Media is greatly and appreciated, and we behind look forward this to growing supporting drinking you andoccasion your business andin the future. what we need to do to take advantage From the team at KAM Media