Premium no and low alcohol remains main driver for spending in beer category

Premium no and low alcohol has continued to be the main driver for spending in the beer category, with shares up 0.2% in the last quarter alone.

According to new data from global beer brand Heineken, no & low alcohol beers have been bolstered by younger consumers seeking better quality in-home experiences from trusted brands during the cost-of-living crisis, as the shift away from alcoholic drinks continues.

Within this, Heineken’s portfolio of brands remains a key player in the UK beer market and is driving growth across the category with its ranges.

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This includes Birra Moretti which has grown an incredible 42% since 2016 and is now the leading premium brand in both the on and the off-trade.

The data also found that premium beer offerings are growing despite the cost-of-living crisis – while shoppers are attempting to make savings across large expenditures, such as household bills or eating out, smaller purchases like alcohol are one area where consumers are happy to spend  more.

For example, premium lager has grown +10.6% in the last quarter, with huge growth in penetration as consumers want better quality products.

Furthermore, the no & low alcohol category has grown by 5.6% over the last year, and grew by more than 13.8% during Dry January.

The no and low alcohol trend has continued to rise, with 70% of consumers agreeing they are proactively trying to lead a healthier lifestyle, and 68% of UK drinkers saying they have tried a No & Low alcohol beverage.

The beer brand says Heineken 0.0 continues to lead it with a 27.3% share of non-alcoholic beer, growing by 3.1% year on year.

“Beer continues to be a high-penetration category and a key footfall driver for retailers, with weekends and events all contributing to strong category uplifts,” category & commercial strategy director at Heineken UK, Alexander Wilson said.

“The extra bank holiday this year will help drive sales further for retailers, and Heineken UK has an opportunity to meet all shopper’s needs, whatever the occasion.

“In addition to the rise of the premium and No & Low trend contributing heavily to the growth of the category, consumers are also buying smaller packs.

“We are seeing smaller multipacks – such as small and mid-packs growing their share of spend and expect this trend to continue over the coming months, as many shop with a more restricted budget.”

Wilson added: “Retailers should be looking to supply customers with choice by offering a range of multipack sizes to help cater to a variety of consumer occasions.”