Drinking less, drinking better, drinking differently.
There is clearly a mood to reduce the consumption of alcohol with 45% of people trying to moderate their drinking. Kantar data shows that low and no alcohol products are being bought as a direct substitute for alcohol rather than stealing share from soft drinks, once again highlighting the importance of the specific occasion. This will be a relief to soft drinks brands as they are often positioned in the same aisles of the store. Retailers are also giving more space to premium squashes and own label too.
The focus on moderation is also quite clear when we look at the out-of-home market where people are buying more hot drinks in pubs, for example people spent 32% more on coffee in Wetherspoons last year than in Pret.
A number of the smaller, premium soft drinks brands have performed well this year. San Pellegrino, Belvoir and Fentimans are all returning solid growth in CRPs and reflect the choices that people are making for quality soft drinks over alcohol.
Many brands are innovating in the low and no alcohol market. For example: Brewdog have added to their range of products with the likes of Punk AF, Hazy AF and Wake Up Call. Particularly for substitute spirits brands price framing is key – designed to be drunk in place of alcohol and positioned at a similar price point. Gin alternative Seedlip is a prime example and retails around the same price as the real thing.
Smirnoff offered a lower ABV alternative to Vodka with the launch of their Smirnoff Infusions range this year, a spritz-style drink at 23% ABV which comes in two different flavours and is recommended to be paired with soda for a low calorie serve. Moving to the no alcohol option, Shloer introduced two new products, their first to not be based on grapes. Shloer Spritzed was launched as an aperitif and alternative to gin and tonic whilst Shloer Pressed is a sparkling fruit blend available in a ready-to-drink can as an alternative to cider.
New product development, especially new flavours and variants, have helped drinks brands grow in the last year. Consumers' desire for novelty and the exotic is matched by the desire to be healthier in their drinking choices, at least some of the time. To grow brands must pull on one and ideally several of the five levers for growth, here are some examples from the last year.
