Sorry for interrupting, this website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Learn more
Accept & Close

Lower Alcoholic Drinks - UK - January 2009

Concern over binge drinking and related health issues has revived the market for low-alcohol drinks, boosting sales by 10% in volume and 12% in value to stand since 2006 at 20 million litres worth £66 million in 2008.

Lager dominates, buoyed by investment in new lower and mid-strength variants, but cider sales are finally moving forward and wine is said to offer greatest potential.

Key report themes:

  • What impact are the Government’s responsible drinking strategy and the anti-binge drinking lobby having on the low alcohol drinks category?

  • Which soft drinks categories offer greatest competition to low alcohol drinks?

  • Which sub-categories are attracting greatest investment in innovation and marketing?

  • Is the current category growth forecast to continue.

What you get

What's included

Why buy from us?

Succeed

Our reports will provide you with market data, consumer research and competitive intelligence to succeed in your market.

Instant Access

Buy now and you'll have instant access to the information you need to make the right decisions.

Opportunities

Find out what's next in the markets that matter to you: where opportunities lie and what challenges you will face.

Trusted

A business Superbrand, Mintel is a source you can trust. We have been defining and refining the Market Intelligence mix since 1972.

Table of contents

  1. Issues in the Market

      • Key themes
        • Definition
          • Abbreviations
          • Future Opportunities

            • Making a meal of low alcohol drinks
              • Adding festive sparkle
              • Market in Brief

                • A growing market
                  • Lager leads in sales, NPD investment
                    • Nation becomes more ‘drink aware’
                      • Innovation and marketing propel category forward
                        • Sales shift towards retail, but on-trade value is needed
                          • Market opportunities
                            • Further investment key to future growth
                            • Internal Market Environment

                              • Key points
                                • British public heeds health message
                                  • Figure 1: Trends for alcohol consumption and frequency generally, at home and elsewhere, 2004-08
                                • Binge-drinking backlash also hits home
                                  • Increase in incidents associated with drinking and driving in 2007
                                    • Figure 2: Number of licensed vehicles on UK roads, 2003-07
                                  • Low alcohol gains in cachet?
                                    • Consumers are less experimental
                                      • Figure 3: Trends in attitudes towards alcohol, 2004-08
                                  • Broader Market Environment

                                    • Key points
                                      • Other European markets more receptive to LADs
                                        • Figure 4: European comparison of alcohol and low alcohol beer consumption, 2008
                                      • Legislative issues
                                        • Government and industry tackle alcohol abuse
                                          • Labelling legislation highlights ABV
                                            • The smoking ban and evolving pub culture
                                              • ABV-linked tax proposals could benefit low alcohol category
                                                • Figure 5: Alcohol taxation rates applied in the UK from December 1, 2008
                                              • EU ruling may boost profile of low-alcohol wines
                                                • Ageing population poses a challenge
                                                  • Figure 6: Structure of the UK population, by age and gender, 2003-13
                                                • Recent unemployment increases bad news for LADs
                                                • Competitive Context

                                                  • Key points
                                                    • Figure 7: Market size and growth for premium (adult) soft drinks, carbonates and fruit juice and juice drinks, 2003-07
                                                  • Premium soft drinks
                                                    • Wine-based adult soft drinks
                                                      • Carbonates
                                                        • Fruit juice and juice drinks
                                                        • Strengths and Weaknesses in the Market

                                                          • Strengths
                                                            • Weaknesses
                                                            • Who’s Innovating?

                                                              • Key points
                                                                • Climate of concern turns attention to LADs
                                                                  • Figure 8: Reduced/no alcohol launches as a percentage of alcoholic launches, 2004-08
                                                                • Beer: can ‘lower alcohol’ be the new ‘extra cold’
                                                                    • Figure 9: NPD in low/no/reduced alcohol launches, % by drinks category, 2005-08
                                                                  • NPD revives flat low/no-alcohol cider category
                                                                    • Wine
                                                                      • International innovations
                                                                      • Market Size and Forecast

                                                                        • Key points
                                                                          • LADs leave alcoholic drink doldrums behind
                                                                            • Figure 10: UK volume sales of LADs as percentage of total sales, by sector, 2007
                                                                            • Figure 11: UK retail value and volume sales of low-alcohol drinks, 2003-13
                                                                          • LADs emerge as a trend in 2007
                                                                            • Potential emerges in wine and cider categories
                                                                              • Figure 12: UK retail value and volume sales of low-alcohol and alcohol-free drinks, by sector, 2004-08
                                                                            • The future of the market
                                                                              • Forecast
                                                                                • Beer is behind steady market growth
                                                                                  • Factors used in the forecast
                                                                                  • Segment Performance

                                                                                    • Key points
                                                                                      • New entrants propel beer sales
                                                                                        • Figure 13: UK retail value sales of low-alcohol and alcohol-free beer, 2003-13
                                                                                        • Figure 14: UK retail volume sales of low-alcohol and alcohol-free beer, 2003-13
                                                                                      • Capturing the middle ground
                                                                                        • Consistent retail growth for low ABV wines
                                                                                          • Figure 15: UK retail value sales of low-alcohol and alcohol-free wine*, 2003-13
                                                                                          • Figure 16: UK retail volume sales of low-alcohol and alcohol-free wine*, 2003-13
                                                                                        • Low-alcohol variants jump on the cider bandwagon
                                                                                          • Figure 17: UK retail value sales of mid-strength, low-alcohol and alcohol-free cider, 2003-13
                                                                                          • Figure 18: UK retail volume sales of mid-strenghth, low-alcohol and alcohol-free cider, 2003-13
                                                                                      • Market Share

                                                                                        • Key points
                                                                                          • Competition heats up over Kaliber’s eroding share
                                                                                            • Figure 19: Brand shares in low-alcohol and alcohol-free beer, by volume, 2004-08
                                                                                          • Top two lead wine sales
                                                                                            • Figure 20: Brand shares in low-alcohol and alcohol-free wine, by volume, 2004-08
                                                                                        • Companies and Products

                                                                                            • Adnams
                                                                                              • Bavaria
                                                                                                • Carlsberg UK
                                                                                                  • Chalié Richards
                                                                                                    • Cobra
                                                                                                      • Coors Brewers
                                                                                                        • C&C Group
                                                                                                          • Diageo
                                                                                                            • Harveys
                                                                                                              • InBev UK
                                                                                                                • Kopparberg
                                                                                                                  • LoNo Drinks Company
                                                                                                                    • PLB
                                                                                                                      • Surfax
                                                                                                                        • Weston’s
                                                                                                                        • Brand Communication and Promotion

                                                                                                                          • Key points
                                                                                                                            • Mid-strength lager entrant buoys total spend
                                                                                                                              • Figure 21: Main monitored media advertising spend on low/no alcohol beer & lager, 2004-08
                                                                                                                            • Adspend by advertiser
                                                                                                                              • Figure 22: Main monitored media advertising spend on mid-strength, low/no alcohol beer and lager, by advertiser, 2004-08
                                                                                                                            • Carling C2
                                                                                                                              • Cobra Zero%
                                                                                                                                • Bavaria Alcohol Free
                                                                                                                                  • Clausthaler
                                                                                                                                    • Responsible drinking campaigns
                                                                                                                                    • Channels to Market

                                                                                                                                      • Key points
                                                                                                                                        • Slide continues in favour of off-trade sales
                                                                                                                                          • Figure 23: UK retail volume sales of low-alcohol and alcohol-free drinks, by outlet type, 2006-08
                                                                                                                                        • LADs hit by pub downturn
                                                                                                                                          • Buoyant supermarket sales lead category growth
                                                                                                                                          • The Consumer – Usage

                                                                                                                                            • Key points
                                                                                                                                              • Making LADs a part of a young man’s night out
                                                                                                                                                • Encouraging taste trials of new LADs
                                                                                                                                                  • Who currently drinks LADs?
                                                                                                                                                    • Frequency of drinking
                                                                                                                                                      • Figure 24: Frequency of drinking low-alcohol beer or lager (cans or bottles), 2004-08
                                                                                                                                                      • Figure 25: Consumption of low alcoholic drinks, October 2008
                                                                                                                                                    • Older consumers and women reject LADs
                                                                                                                                                      • Men most receptive
                                                                                                                                                        • Poor past experiences a turn-off
                                                                                                                                                          • Enticing newcomers to the category
                                                                                                                                                          • The Consumer – Attitudes and Motivations

                                                                                                                                                            • Key points
                                                                                                                                                                • Figure 26: Agreement with statements about low alcoholic drinks, October 2008
                                                                                                                                                              • Two-fifths of consumers lack awareness of the LAD category
                                                                                                                                                                • Preference for soft drinks holding LADs back
                                                                                                                                                                  • Taste testings to change perceptions
                                                                                                                                                                    • Expanding choice
                                                                                                                                                                    • Targeting Opportunities

                                                                                                                                                                      • Key point
                                                                                                                                                                        • Low awareness and preference for soft drinks are major stumbling blocks
                                                                                                                                                                          • Figure 27: Intention to drink low/no-alcohol drinks by general attitudes towards them, October 2008
                                                                                                                                                                        • 19 million Brits willing and able
                                                                                                                                                                          • Figure 28: Potentials or rejectors by general attitudes towards low/no alcohol, October 2008
                                                                                                                                                                        • Greatest potential amongst younger consumers
                                                                                                                                                                          • Tesco and Asda missing an opportunity?
                                                                                                                                                                            • Figure 29: Supermarkets with the best demographic fit for potentials, October 2008
                                                                                                                                                                        • Appendix

                                                                                                                                                                          • Consumer research
                                                                                                                                                                            • ACORN
                                                                                                                                                                              • Advertising data
                                                                                                                                                                                • Abbreviations
                                                                                                                                                                                • Appendix – Internal Market Environment

                                                                                                                                                                                    • Figure 30: Trends for not drinking alcohol by gender, 2004-08
                                                                                                                                                                                    • Figure 31: Attitudes towards alcohol, by demographic sub-group, 2007
                                                                                                                                                                                • Appendix – The Consumer Usage

                                                                                                                                                                                    • Figure 32: Consumption of low-alcoholc drinks, by demographic sub-group, October 2008
                                                                                                                                                                                    • Figure 33: Consumption (cans or bottles) of low alcohol beer or lager, by demographic sub-group, 2007
                                                                                                                                                                                    • Figure 34: Consumption (cans or bottles) of low alcohol beer or lager, by demographic sub-group, 2007
                                                                                                                                                                                • Appendix – The Consumer: Attitudes and Motivations

                                                                                                                                                                                    • Figure 35: Agreement with statements about low-alcoholic drinks, by demographic sub-group, October 2008
                                                                                                                                                                                    • Figure 36: Agreement with statements about low alcoholic drinks, by demographic sub-group, October 2008
                                                                                                                                                                                • Appendix – Targeting Opportunities

                                                                                                                                                                                    • Figure 37: Potentials and Rejectors, by demographic sub-group, October 2008

                                                                                                                                                                                Companies Covered

                                                                                                                                                                                • Aldi Stores Ltd (UK & Ireland)
                                                                                                                                                                                • Asda Group Ltd
                                                                                                                                                                                • British Beer and Pub Association
                                                                                                                                                                                • British Market Research Bureau (BMRB)
                                                                                                                                                                                • British Medical Association (BMA)
                                                                                                                                                                                • Carlsberg UK Ltd
                                                                                                                                                                                • Co-operative Group
                                                                                                                                                                                • Cobra Beer
                                                                                                                                                                                • Daily Mail
                                                                                                                                                                                • Department of Health
                                                                                                                                                                                • Diageo Plc
                                                                                                                                                                                • Diageo UK
                                                                                                                                                                                • Duchy Originals
                                                                                                                                                                                • Food Standards Agency
                                                                                                                                                                                • Halewood International Ltd
                                                                                                                                                                                • Heineken N.V.
                                                                                                                                                                                • HM Revenue & Customs
                                                                                                                                                                                • Iceland Foods Ltd
                                                                                                                                                                                • InBev
                                                                                                                                                                                • J. Sainsbury
                                                                                                                                                                                • Lidl (UK)
                                                                                                                                                                                • Marks & Spencer
                                                                                                                                                                                • Outdoor Advertising Association of Great Britain
                                                                                                                                                                                • PLB Group Ltd
                                                                                                                                                                                • Somerfield
                                                                                                                                                                                • Surfax
                                                                                                                                                                                • Tesco Plc
                                                                                                                                                                                • The LoNo Drinks Company Ltd
                                                                                                                                                                                • The Orchid Group
                                                                                                                                                                                • The Portman Group
                                                                                                                                                                                • The Sun
                                                                                                                                                                                • Waitrose
                                                                                                                                                                                • Wine and Spirit Association (The)
                                                                                                                                                                                • Wm Morrison Supermarkets

                                                                                                                                                                                Lower Alcoholic Drinks - UK - January 2009

                                                                                                                                                                                £1,995.00 (Excl.Tax)