Demand for low or no alcohol drinks continues to grow and closes the gap with booze, Ocado says

Demand for non-alcoholic and non-alcoholic drinks continues to rise as consumers remain dry beyond January, Ocado says.

Data shared with This Is Money shows that searches for alcohol alternatives increased significantly in January compared to the previous year.

Searches for low-alcohol lager rose 102 percent between January 2023 and January 2024, while low-alcohol red wine rose 48 percent.

Ocado says searches for low or no alcohol drinks have soared since January 2023

Searches for non-alcoholic white wine increased by 119 percent, while non-alcoholic drinks in general increased by 40 percent.

The number of Britons drinking alcohol has steadily declined in recent years.

A recent report from hospitality research organization KAM shows that 5.2 million fewer British adults would drink weekly in 2023 than in 2021.

Young people are also increasingly moderating their intake or avoiding alcohol completely; two in five under 25s say they are not drinkers.

There are now more alternatives than ever and Ocado said it has expanded its own range by a third in the past eighteen months to meet increased demand.

A survey commissioned by Ocado found that almost half of consumers plan to continue drinking alcohol alternatives beyond the end of January.

One in three said greater choice had been a key factor in reducing their alcohol consumption.

Adnams Brewery told This Is Money that Ghost Ship 0.5 percent, which it launched in 2018, now accounts for 26 percent of the beer’s sales.

Sales have increased so much that it is now the second best-selling beer across the range, behind the 4.5 percent version of Ghost Ship.

Likewise, Guinness Zero has proven to be a hit with drinkers. Last summer, owner Diageo announced it wanted to triple production of its non-alcoholic brand in response to changing tastes.

The drink, which launched in 2021, is on track to account for 10 percent of all Guinness sales in Ireland in the coming years.

It was also the top alternative alcoholic drink for Ocado shoppers, with searches up 50 percent year-on-year.

Sales of the product increased by 12 percent during that period.

It was followed by Lucky Saint lager, Britain’s largest non-alcoholic beer brand, and Beck’s Blue.

Total low and no beer volumes increased 23 percent year-over-year, while low and no cider volumes increased 12 percent.

Oscar Biggs, buyer for No/Low at Ocado Retail, says: ‘Dry January used to mean moderating for a month before returning to old habits, but that is no longer the case.

‘We have expanded our range of no/low drinks by 21 per cent year-on-year, in response to customer demand for non-alcoholic alternatives.

‘Sales of alcoholic products remain strong, but the no/low gap is closing. That’s why we continue to expand our range of non-alcoholic and alcoholic beers, ciders, wines and spirits to ensure Ocado has something for everyone.”

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