Asahi finds £32m low-alcohol beer opportunity for convenience retailers

Asahi UK has identified that convenience retailers could increase sales of no and low-alcohol beer by £660 on average in each store, due to the soaring demand of low alcohol alternatives over recent months.

No and low-alcohol beer spiked to 4.6% of the beer market in January 2023, compared to 4% in January 2022. Most of this growth is coming from new products adding value to the category, like Peroni Nastro Azzurro 0.0% and Guinness 0.0%.

The no and low-alcohol beer category makes up 2.9% of total beer sales, in comparison to convenience stores where it sits at 0.7%.

The Japanese beer brand found that raising sales of no and low-alcohol beer to the same share as it is in grocery would generate £32 million in sales for convenience shops. Divided by the 48,590 convenience stores in the UK, Asahi revealed that this is a £660 opportunity for each store on average.

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This analysis follows the most successful January on record for no and low-alcohol products. In the 12 weeks to 28 January 2023, the no and low-alcohol beer category grew by 13.7% vs total beer at 0.6%.

The company analysed that the most popular no and low-alcohol products like Heineken 0.0 and Becks Blue lost value share, while new products such as Guinness 0.0% and Peroni Nastro Azzurro 0.0% both grew their share – suggesting a shift in consumer behaviour and the desire to try new flavours.

Furthermore, Peroni Nastro Azzurro 0.0% 4x330ml has added more than £4 million to the category since it entered the market.

Asahi launched its Asahi Super Dry 0.0% in January 2023, and the global brand has an ambition for 20% of its core product portfolio to offer alcohol-free products by 2030.

“The category is under-developed in convenience stores, but retailers can fix this by stocking just three key products to create a credible range,” sales director at Asahi UK, Steve Young said.

“Retailers should offer Peroni Nastro Azzurro 0.0% 4x330ml as it is the top alcohol-free beer by rate of sale in impulse.

“Seventy per cent of no- and low-alcohol beer sold in impulse stores is in four-packs, with this format growing at 30%. Single bottle is the second biggest segment with 6% of sales, but this area is declining at -7%.”

Young added: “With increased awareness, media exposure and higher quality NPD, we should expect the no- and low-alcohol category to keep growing, in line with this trend, we launched Asahi Super Dry 0.0% earlier this year and its already proving to be a popular choice amongst beer lovers.”

It comes as Tesco discovered last week that demand for no and low alcohol beer has risen by nearly 40% in its stores over the last two years.

FMCGIndependent retailersNews


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