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Insight of the Day: The UK on-trade is still failing to grasp the low-and-no opportunity

Findings:

  • UK consumers are drinking significantly less alcohol than before, with moderation being the main driver.

  • 1 in 3 visits to on-trade venues in the UK are alcohol-free, and 60% of bar visits and 72% of restaurant visits involve a mix of alcoholic and non-alcoholic drinks.

  • Younger consumers (under 34) are more likely to moderate their alcohol consumption and choose venues with good non-alcoholic options.

  • The number of people trying and regularly consuming low-and-no products is increasing.

Key Takeaway:

The demand for non-alcoholic drinks is growing, and businesses that fail to offer a good selection are missing out on potential revenue.

Trends:

  • Moderation is becoming an ingrained habit, especially among younger consumers.

  • Socializing is no longer solely focused on alcohol consumption, with experiences and non-alcoholic options becoming increasingly important.

  • Younger drinkers are not necessarily having fewer drinks, but rather choosing non-alcoholic alternatives more often.

Conclusions:

  • Both retail and on-trade venues need to improve their low-and-no offerings to cater to changing consumer preferences.

  • Lack of visibility and limited choice of non-alcoholic drinks are costing businesses potential revenue.

  • Improving the range and communication of alcohol-free options could significantly increase customer visits and spending.

Implications for Brands:

  • Brands need to invest in developing and marketing high-quality non-alcoholic drinks that appeal to a wide range of consumers.

  • Businesses should clearly communicate their non-alcoholic options to customers, both in-store and online.

  • Bars and restaurants can create attractive non-alcoholic cocktails and mocktails to cater to the growing demand for sophisticated alcohol-free alternatives.

  • Brands should consider partnering with influencers and experts in the low-and-no space to raise awareness and credibility of their products.

  • Adapting to the moderation trend can open up new opportunities for growth and customer loyalty in the drinks industry.

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