Tesco PLC : Health conscious Brits create record growth for lower alcohol beer

Jan 30, 2012

Demand for lower alcohol as well as non-alcoholic beer is growing significantly with UK off-licenses seeing all time record sales.

The latest 52 week sales data shows that demand for lower and non-alcoholic beer soared by a hefty 40 per cent across all retailers according to independent retail analysts Kantar Worldpanel.  At Tesco the sales are even higher, with growth of 47 per cent year on year.

Non and low alcohol beer sales are growing due to three main factors: improved product quality and range, healthy living and better awareness on drink driving.

Following the growth of the market Tesco will next week expand into the developing mid-strength beer market when it launches 11 brews, all with an ABV of 2.8%. The average ABV of beer is 4%.

Tesco specialist beer buyer Chiara Nesbitt said:"The growth, particularly for non alcohol beers, is remarkable as they were previously frowned upon by drinkers who considered them thin and tasteless compared to the real thing.

"However, over the last few years there have been great improvements in quality with many breweries using far better ingredients in order to create full-bodied brews that taste like their more alcoholic cousins.

"The success of this market has shown us that growing numbers of drinkers are prepared to buy lower alcohol beers as long as the quality is good."

Last year Tesco sold nearly 15 million bottles of non and low alcohol beer and this year it expects sales to grow even further by 10 to15 per cent.

Chiara Nesbitt added: "The new mid-strength beer category has been a long time coming and the growing number of 2.8% ABV brews will offer greater diversity than ever before for drinkers whilst at the same time offering them very high quality and extremely great tastings brews.

"We are creating a new middle ground for beer drinkers which will offer a solution to anyone fancying a midweek pint, perhaps to enjoy while watching the football, but who doesn't want anything too strong."

Included in the new Tesco 2.8%ABV range will be Becks Premier Light; Rolling Rock; Labatt Blue; Carling C2; Guinness Mid Strength; Bavaria 2.8%; Cains Calcutta Pale Ale; Fuller's Mighty Atom; Marstons Shandy; Marstons Genuine Pale Ale; Green King Tolly English Ale.

- ENDS -

Notes to Editors:

- - Non-alcoholic beer arrived in the UK in the early 1980s but didn't sell well because it was generally considered to taste thin, metallic and not very much like beer at all.

- - The most popular brands are Bavaria, Cobra, Erdinger and Becks.

- - Kantar Worldpanel record that 52 week volume growth for no and low acohol beer has grown by 40 per cent  (Nov 2011).