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    Asahi UK identifies £32m C-channel opportunity for no and low beer

    Convenience retailers could increase sales of no- and low-alcohol beer by £660 on average in 2023, according to Asahi UK.

    In grocery multiples, no- and low-alcohol makes up 2.9 per cent. of total beer sales, in comparison to impulse stores where it is at 0.7 per cent. Raising sales of no- and low-alcohol beer to the same share as it is in grocery would generate £32m in sales for convenience stores. Divided by the 48,590 convenience stores in the UK, this is a £660 opportunity for each store on average.

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

    “Retailers should offer Peroni Nastro Azzurro 0.0 per cent 4x330ml as it is the top alcohol-free beer by rate of sale in impulse1. Seventy per cent of no- and low-alcohol beer sold in impulse stores is in four-packs, with this format growing at 30 per cent. Single bottle is the second biggest segment with 6% of sales, but this area is declining at -7 per cent.”

    The analysis follows the most successful January on record for no- and low-alcohol products. No- and low-alcohol beer spiked to 4.6 per cent of the beer market in grocery multiples in January 2023 vs four per cent in January 2022. Most of the growth is coming from new products, with Peroni Nastro Azzurro 0.0 per cent and Guinness 0.0 per cent adding the most value to the category.

    “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 per cent earlier this year and its already proving to be a popular choice amongst beer lovers,” Young said.

    In the 12 weeks to 28.01.23, no- and low-alcohol beer grew by 13.7 per cent vs total beer at 0.6 per cent. Heineken 0.0 per cent lost value share as did Becks Blue. Guinness 0.0 per cent and Peroni Nastro Azzurro 0.0 per cent were the biggest beneficiaries, both growing their share.

    Peroni Nastro Azzurro 0.0 per cent 4x330ml has added more than £4m to the category since it entered the market, with more than half of the value of Peroni Nastro Azzurro 0.0 per cent coming from new beer buyers.

    Asahi Europe & International’s ambition is for 20 per cent of its core product portfolio to offer alcohol-free products by 2030. Supporting this ambition further, the company launched Asahi Super Dry 0.0 per cent in January 2023.

     

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