Duffett told the Morning Advertiser (MA) those opting to not drink alcohol still want to be part of the “full social experience” in pubs, adding 60% of visits to the on-trade now involve alcohol-free drinks.
This, he added, has fuelled a growing demand for a wider range of no & low beers and pushed brewers within the segment to become more innovative.
Duffett continued: “The industry has seen the growing demand for alcohol free and as such brewers are capitalising on that, which creates competition and more innovation; there’s better quality coming out of that.
“[We need to make customers aware] if they had tried the category maybe 10 or 20 years ago and didn’t have a good experience, that actually it has really moved forward now and is something they can engage with.
“The reason we launched our lager is because that was the most popular beer style in the UK, but as we are seeing more people enter the alcohol-free space, the desire for a similar range of options as alcoholic beverages (has grown).
“People are looking for a mix of styles. Guinness 0.0, [for example], has done a fantastic job at offering consumers a really good quality stout and I think we'll continue to see innovation in the low and no beer space as we've seen in alcoholic beers.”
Driving force
In addition, the on-trade director stressed the importance for pub operators to cater for this growing consumer demand and thirst for variety, adding not drinking shouldn’t be “prohibitive” for customers wanting to go to the pub.
“As the category is growing and more people are coming into it, they will want to be better catered for. Having a solid range of non-alcoholic beers will help to attract more people to pubs.”
Duffett, who previously worked for Camden Town Brewery before joining Lucky Saint in February 2021, also told the MA people looking for healthier lifestyles had become a “driving force” for the segment as opposed to pricing.
Citing a recent study conducted alongside KAM, Duffett explained 62% of consumers felt being healthy could potentially be a barrier to them going out, demonstrating the need to cater for all tastes and occasions with a wide range of products and formats.
“If customers are given options that are healthier, you're then catering for that occasion and ensuring they're still visiting the on-trade.
“People are willing to pay for good quality alcohol free experiences. The main thing they're looking for is that social connection and all the brilliant things hospitality can provide."
Duffett added having an alcohol-free draught beer line could help operators tap into a “missed opportunity” to encourage non-drinkers to trade up.
“We're seeing people switch from being a bottle stockist into a draught stockist to cater for the growing demand.”
“[Draught options] provide a much better experience and generate more revenue for pubs.
“Our research with KAM also revealed there was an £800m lost opportunity across the on trade each year where people are not purchasing a drink but having tap water instead.
“Consumers will pay more for a quality experience and operators are continuing to see the benefits of stocking draught alcohol free and having a bottle range.
“Being able to stand there with a pint in your hand as part of a round regardless of alcohol is really driving the space forward.”
Though visibility within venues was “super important” to encourage consumers to trade up and ensure they don’t go down the tap water route again, Duffett added.
He advised: “Making sure tap badges, bar runners, lanyards, tap handles etc are all in place [and products are displayed on menus] gives the consumer every chance to spot the product and decide what they want to drink.”
However, it is not just the non-drinkers that pubs shouldn’t underestimate as consumers increasingly look to moderate and reduce consumption of alcohol, in particular younger drinkers.
Fastest growth
Some consumers now opt to have non-alcoholic serves in between alcoholic beers, known as ‘zebra striping’, which Duffett said could prove “really powerful terminology” for the trade.
In addition, the on-trade director noted while alcohol free serves and occasions were typically associated with dry January, this was also evolving and fast becoming a “year-round” proposition.
“Last year, alcohol-free consumption in summer across the overall category overtook January figures and we’d expect to see that again this summer”, he commented.
Founded by Luke Boase in 2016, Lucky Saint, which opened its first pub in Central London last year, is now stocked in more than 1,000 outlets on draught and around 9,000 in bottle format and is looking to grow its presence in the on-trade.
To aid the on-trade expansion, the firm has recruited a larger team to be able to ensure “high-quality” experiences for consumers and trade customers alike, from maintenance checks and in-venue sampling to PoS or activation support and boosting in-venue visibility.
In addition, its newly launched variant, Lucky Saint IPA, has had a “really successful start” in both on and off trade channels, Duffett said.
He continued: “The biggest driver of growth is our lager and the draught format side of the business in the on-trade is where we are seeing the fastest growth.
“We're seeing people switch from being a bottle stockist into a draught stockist to cater for the growing demand.”
- Lucky Saint was the fourth best-selling low & no beer brand in the on-trade in 2023 according to CGA data from The MA’s Drinks List 2024. See the list here.
