Temperance is the new craft beer for drinks groups
By Carol Ryan, Reuters
December 28, 2017
(The author is a Reuters Breakingviews columnist.)
LONDON, Dec 28 (Reuters Breakingviews) – With a teetotaller in the White House and strong demand for low-alcohol tipples, moderation is having a moment. Greater health awareness and restrained consumption among young drinkers mean volumes of low- and no-alcohol beer will expand five times faster than traditional drinks in 2018. It’s a new source of growth for global companies as the craft beer craze loses its froth.
Growing health consciousness is a factor. The same trend that has prompted consumers to reject processed foods has also led them to imbibe less. Concern that drunken antics will go viral on social media may be another reason why so-called millennials are proving more disciplined drinkers than their parents. Drinks companies are tapping into that restraint. Global volumes of low-or-no-alcohol beers will grow by 4.9 percent in 2018, compared with less than 1 percent for alcoholic drinks, Euromonitor forecasts.
Big companies are eager for a slice of the action, as well as the sheen of responsible drinking. While non-drinkers once had to content themselves with a rather sad selection, booze-free choices increasingly look and taste like the real thing. Diageo recently bought a stake in Seedlip, a maker of alcohol-free distilled spirit set up by a teetotaller fed up of boring drinks options. Budweiser owner AB InBev wants a fifth of its global beer volumes to be low in alcohol by the end of 2025.
The development is welcome as craft beer increasingly becomes a victim of its success. Production volumes in the United States in the first half of 2017 were up 5 percent, just a third of the growth rate two years ago. That’s bad news for the more than 5,200 U.S. microbreweries that have sprung up to cater to demand for authentic brews. Bigger companies will avoid the hangover by going after the sober.
United Kingdom: Three million people to give up alcohol in January
December 28, 2017
Some three million people in the UK are expected to give up alcohol next month, putting further pressure on pubs and restaurants.
According to a YouGov poll, commissioned by charity Alcohol Concern, over 3.1 million people are planning to do Dry January and ditch alcohol for a month.
The poll of 2,086 members of the public found that those between the ages of 35 and 54 were most likely to give up alcohol for heath and financial reasons, with 7% saying they planned to give up booze. Those in Northern Ireland were most likely to abstain (10%), followed by drinkers in the North East (8%).
Alcohol Concern chief executive Dr Richard Piper said: “Alcohol is the biggest cause of death, ill-health and disability for people aged 15-49 in the UK – but these tragedies are all totally avoidable. Dry January is growing year-on-year as more people across the country decide to take control of their drinking and reap the benefits, both in how they feel now and for their future health.”
For pubs and restaurants it means further pressure in 2018 on top of the wage and food inflation that has cut profits this year.
The campaign is endorsed by Public Health England, which said that Dry January was based on sound behavioural principles and that it helps re-set drinking patterns for weeks or even months.
Two-thirds of those who attempt Dry January make it through the month without drinking.