Establishing a foothold in the Low & No Drinks Category in the UK

While retail sales of alcohol have plateaued somewhat since the pandemic, the low & no drinks segment has performed strongly – sales up 13.9% (NIQ 15 July 2023) vs all alcohol down 1.3% over the same period.

Beer is the largest component in low & no drinks and is now a £100m+ category, increasing value sales by 20% to £125.7m. While that all looks rosy, it can be tough for new brands to get a foothold. The number of skus in the Top 5 retailers has already tripled over the last 5 years and the brewing giants have strengthened their dominance of the category.

Nevertheless the fact that penetration is still very low in the UK should mean there are opportunities. Low & no penetration is only 3% compared with 16% in Spain, 11% in the Netherlands, 10% in Spain and 7% in Germany.

What’s more some UK supermarket chains like Waitrose are increasing the focus on this area – along with functional drinks – by creating a dedicated space to showcase the category. The key to success will be great branding and visibility but also of course taste. Consumers will not accept poor tasting versions of loved alcoholic versions, they need products they feel good about drinking and want to come back for more.

To get in touch with our UK team below