Low and no alcohol sector offer biggest opportunities claims UK pub chain, though growth could be hampered by pricing
Low and no alcohol drinks offer the biggest opportunities, according to UK pub chain All Bar One, though future growth could be hampered by perceived unfair pricing.
The company saw sales of this category rocket by two thirds – 66% - in 2019 compared to the previous year, after having a “pretty basic offer” in 2017, according to senior marketing manager Laura Clark, who was speaking at last week's first Low+No conference in London.
She said low and no-alcohol choices now comprise between 5% and 15% of All Bar One's £70m drinks sales a year as part of its wider strategy to offer customers “more balanced choices”. The move also focuses on the generational desire to seek out healthier options.
“This generation is the driver of change – they are our guests now and our guests of the future.” She said the company had extended its range to offer a choice that was “more than a lime and soda” to drive excitement.
“I know sales of low and no-alcohol drinks are currently low but it's up to us to drive growth. We've spent a lot of time and effort on glassware and garnishes as part of a continuous improvement.”
Other initiatives employed by All Bar One to boost sales of low and no alcohol drinks include adding “conscious consumption tags” to its drinks menus – highlighting the alcohol content, calories and sugar; bringing alcohol-free cocktails into the main menu to increase visibility; offering low-alcohol wine and mindful cocktails; and enhanced head bartender training.
“We've also got to get the price right – about two-thirds of a premium alcoholic version – while food pairing is another opportunity,” adding that the company were looking to further build on the range by adding draught versions and trial innovations.
It’s not only All Bar One that is aware of the opportunities presented by the low and no alcohol sector, with two thirds of licences surveyed by KAM media increasing their range last year, with almost three quarters (72%), seeing the growth of the category as an opportunity to upsell customers more premium drinks rather than traditional soft drinks.
However, the study based on feedback from 1,000 UK adults and 170 licensees found that future growth of low and no alcoholic options could be threatened by a perceived unfair price point, Additionally, more than half said they found it difficult to differentiate which cans and bottles behind the bar were low or non alcoholic.