July 7, 2025 UK The Grocer "Why Major Drinks Companies are Changing Tack on Low & No"
Navigating the No & Low Landscape: Why UK Drinks Giants are Winning Off-Trade – and What About On-Trade?
Published: July 19, 2025
Based on insights from The Grocer's July 7th, 2025 article, "Why Major Drinks Companies are Changing Tack on Low & No" by James Beeson, the burgeoning UK market for non-alcoholic (NA) beverages can be examined. While the article highlights the increasing market share of legacy NA brands in the UK's off-premise/trade sector (supermarkets, retailers), a crucial question remains: does the UK on-premise/trade (pubs, restaurants, bars) reflect this trend, or is the shift primarily an off-trade phenomenon?
The Off-Trade Advantage: Legacy Brands Lead the Charge
The off-trade success of legacy NA brands in the UK is readily understandable. Factors contributing to their dominance include:
- Competitive Pricing: Reports from the UK, observed even from NYC, indicate that major legacy brands often price their non-alcoholic offerings more competitively than standalone NA brands. This provides a significant pricing advantage, especially in a market where price sensitivity can be a key driver for consumers.
- Unparalleled Brand Recognition: Brands like Beefeater, Captain Morgan, Gordon's, and Tanqueray are household names in the UK and globally. This established brand awareness significantly reduces the need for extensive consumer education. Unlike newer entrants like Seedlip Grove 42 or Everleaf Mountain, consumers instantly recognize and associate quality with these legacy labels. This translates to immediate pull-through on the shelf, even from a distance.
- Simplified Usage and Familiarity: The ease of use and familiarity associated with legacy brands also contributes to their off-trade success. Pairing a non-alcoholic version of gin with tonic or a non-alcoholic spirit with cola for a simple two-pour NA cocktail requires minimal instruction as its usually immediately obvious to consumers who may not be inclined to meticulously read product descriptions.
- In-built Trust and Curiosity: Both grocery buyers and consumers already possess a strong sense of familiarity and trust with established legacy brands. This inherent trust fosters a willingness to try the non-alcoholic variants, even out of simple curiosity. Building comparable unaided brand awareness for a standalone brand can be a costly and time-consuming endeavor
- Advertising Synergy: In markets with restrictions on alcohol advertising, promoting the non-alcoholic versions of legacy brands offers a strategic "two-for-one" benefit, effectively generating impressions and maintaining visibility for both the alcoholic and non-alcoholic products
The On-Trade Conundrum: A Different Playing Field?
While the off-trade landscape clearly favors legacy NA brands, the on-trade presents a potentially different scenario. Factors that might influence on-trade trends include:
- The Role of Bartenders and Mixologists: On-trade venues rely heavily on the expertise and recommendations of bartenders and mixologists. Their knowledge and enthusiasm for standalone brands or crafted NA cocktails could significantly influence consumer choices, potentially leveling the playing field with Standalone brands versus legacy brands.
- Emphasis on Craft and Innovation: On-trade settings often prioritize unique and innovative offerings. Standalone NA brands, with their focus on distinct botanical profiles and creative combinations, might find a more receptive audience in bars and restaurants looking to offer unique experiences versus the legacy brands that are mimics or their alcoholic versions.
- Premiumization and Margins: The perceived value and potential for higher margins associated with certain standalone NA brands could appeal to on-trade venues seeking to enhance their beverage programs and profitability.
The Question Remains
Further investigation is required to definitively answer whether the UK on-trade mirrors the off-trade trend. Understanding consumer behavior, bar programs, and the role of innovation within on-premise venues will be crucial to paint a complete picture of the evolving low & no drinks market in the UK.
By focusing on these key considerations, businesses in the low & no drinks sector can better strategize their approach to both off-trade and on-trade markets, ultimately maximizing their reach and success in this exciting and dynamic space
https://www.thegrocer.co.uk/analysis-and-features/why-major-drinks-companies-are-changing-tack-on-low-and-no/706588.article