The cider maker told The Morning Advertiser the off-trade has the ability to stock a greater range than pubs and are building its alcohol-free beers, ciders wines and spirits stocks due to growing consumer demand.
It is a trend backed by statistics showing younger generations, especially Gen Z and Millennials, are drinking less alcohol than previous generations.
The Myrtle Farm business in Somerset said off-trade customers have learned to expect quality and range but that isn’t always reflected in the on-trade.
In fact, while customer satisfaction with venues’ low & no cider range is improving, satisfaction levels are at just 15% (up nine percentage points from 2023), it has a long way to go to catch beer, the category leader, which has a 51% satisfaction rating.
“It is clear to see why this is happening,” said Thatchers Cider senior category & insights manager Gemma Pym. “Through our research, we see many operators just stocking alcohol-free fruit cider – perhaps because they see packaged fruit outselling packaged apple cider – but this overlooks the fact apple cider is more often found on draught and makes up more than 60% of all cider sold in the on-trade.
“That means if you don’t stock a credible alcohol-free apple cider, you’re missing out on meeting the needs of a high percentage of your cider drinkers, who are moderating.
“With one in three visits to the pub now alcohol-free and three out of four UK adults saying they are moderating (source: KAM: 2024 Drinking Differently report), that’s a large proportion of people you could be alienating.”
A complete range
As research by Lucky Saint has shown, the UK is well behind its German and Spanish counterparts with low & no beer options with the category only contributing 3.6% of the market in the UK (and only 0.8% of the UK’s contribution comes from the on-trade), compared to 10% in Germany and Spain. “The picture is undoubtedly similar for cider too,” said Pym.
Thatchers said as low & no becomes more mainstream, outlets need a complete range.
Thatchers Cider head of on-trade James Palmer explained: “Gone are the days when a token alcohol-free lager on the bottom shelf would do.
“If a venue is going to cater for all their drinkers, they need a full, credible low & no range.
“It encourages customers to stay longer and ensures everyone in the group is having a quality experience. If the non-drinker isn’t catered for, the whole party could move on.”
According to the KAM Drinking Differently report, 65% of people say non-drinkers in their group influence the choice of venue, so you could be putting people off entirely if you don’t give proper attention to your low & no offering.
Pubs and bars clearly need a quality alcohol-free lager or IPA available, and it makes sense to have options (depending on space) to offer different styles.
Cider most popular after beer
“Lucky Saint, for example, is a great premium Unfiltered Bavarian 0.5% ABV, which can be supported with another complementary option,” said Pym.
“Cider is the next most popular pint after lager so making sure you have a premium zero apple cider is essential.
“Don’t get fooled in to thinking your alcohol-free range, which often comes in bottles, needs to just reflect your usual fridge options.
“It needs to reflect your whole drinks range, including draught and, with apple cider making up 60% of all cider sales, an alcohol-free apple cider is key. A low/no fruit cider option is only going to satisfy the minority of your cider drinkers.”
Palmer added: “With 31% of UK adults having left a venue early or disappointed as a result of poor low & no options in the past three months, can you afford not to offer a premium solution in all categories?”
Thatchers said the good news is high-quality, alcohol-free drinks can command premium prices and they are often a profitable upsell from a traditional soft drink. This allows bars to maintain profit margins even if customers aren't consuming alcohol.
The cider brand summarised that while supermarkets have led the way, bars that fail to adapt may miss out on important customer segments.
Stocking low & no alcohol options is not just a trend, it’s an important part of staying relevant in an evolving market where moderation and choice are key.
