By James Bayley

Published:  20 December, 2022

The announcement has caught many in the trade by surprise – new duty rates usually come in on the 1 February each year. However, exchequer secretary James Cartlidge revealed to the House of Commons that the duty rates decision will be held until chancellor Jeremy Hunt delivers his Spring Budget on 15 March 2023.

Further, the Minister made clear that if any changes to duty are announced then, they will not take effect until 1 August 2023. This is to align with the date on which historic reforms to the alcohol duty system are due to begin and amounts to an effective six-month extension to the current duty freeze.

Many in the industry were expecting an announcement on duty rates in the Autumn Statement last month where chancellor Jeremy Hunt made a few announcements regarding business taxes, but made no mention of alcohol duty.

Exchequer secretary to the Treasury, James Cartlidge said: “The alcohol sector is vital to our country’s social fabric and supports thousands of jobs. We have listened to pubs, breweries and industry reps concerned about their future as they get ready for the new, simpler, alcohol tax system taking effect from August.

“That’s why we have acted now to give maximum certainty to the industry and confirmed there will be just one set of industry-wide changes next summer.”

In September the former chancellor Kwasi Kwarteng proposed a duty freeze but this was reversed by Jeremy Hunt when he became chancellor. Hunt’s rates would have cost consumers 38p on a bottle of wine and £1.35 on a bottle of spirits, and created an additional tax burden to the drinks trade of £600m, according to Treasury figures.

The freeze on alcohol duty rates has been mostly welcomed by the trade. Miles Beale, CEO of the Wine and Spirit Trade Association, said: “We are extremely pleased to hear that the chancellor has listened to our calls not to deliver a double whammy tax hike next year. History has shown that freezing alcohol duty delivers increased revenue to the Exchequer. If duty rates went up by RPI on 1 February, this would have been a crippling blow to the UK alcohol industry and consumers who would have to pay the price for tax rises.

“Delaying any increase until 1 August means businesses will not have to manage two duty rises in the space of six months. We hope that any duty increases applied in August take into account the damage suffered by wine and spirit businesses and the hospitality sector during the pandemic. We are calling on Jeremy Hunt to cancel double-digit tax rises to help cash-strapped consumers and to support the UK’s world-class drinks industry.”

Michael Kill of the Night Time Industries Association (NTIA) said: “We welcome the announcement today that Alcohol duty will be frozen until August by the chancellor, but urge the government to recognise the full extent of the problem and consider further support in the coming months for many businesses to survive. The alcohol duty freeze will give businesses some breathing space but will not repair the damage already done or solve the immediate challenges faced by the sector following three years of disruption.”

Nuno Teles, MD Diageo GB said: “The decision by the chancellor to freeze alcohol duty until August will come as a much-needed Christmas present for hard-pressed pubs, bars and restaurants up and down the country. Today’s news provides much-needed certainty for the sector and we raise a glass of Guinness to the chancellor and the PM in thanks. Cheers, chancellor!”

Meanwhile, in the Autumn Budget 2021, the government announced, “the biggest reforms to alcohol duty in 140 years.” The changes will overhaul the UK’s alcohol tax system following Brexit, by introducing 27 bands (as opposed to three) for alcohol across wine categories.

Described as a “common sense approach”, by the government, the new system will raise duty for higher ABV drinks. 

However, according to the WSTA, if wine were taxed according to its alcoholic strength, 70% of all still and sparkling wine would go up in price, as would 80% of all still wine, 95% of red wine and 100% of fortified wines.

The reforms will take effect from 1 August 2023 and all wine between 11.5-14.5% ABV will be calculated for duty as if it were 12.5% ABV for 18 months from the implementation of the new system.

By Jo Gilbert

Published:  16 December, 2022

As we race towards January, a time of year traditionally for detoxing and cutting back, low & no is in focus once again. There is a marked difference this year, however. Low & no is now increasingly a year-round phenomenon, as consumers become motivated to drink lower alcohol drinks weekly or even daily and because of ‘lifestyle, rather than necessity’.

New figures from the IWSR show just how quickly the category is growing – and will continue to grow. Low & no beer/cider, wine, spirits and RTDs surpassed $11bn in 2022 (+7% in volume) across the top 10 key markets globally, which together, account for the lion’s share of sales.

The pace of growth of the category is expected to accelerate, too. According to the IWSR, volumes are forecasted to reach a CAGR of 7% between 2022 and 2026 worldwide, compared to +5% between 2018 and 2022. Interestingly, it is zero alcohol – driven by beer and spirits – as opposed to low alcohol – driven by wine and beer, which is again spearheading growth, and is expected to account for over 90% of the total category volume growth in the world’s key markets going forwards.

“This pattern of avoiding alcohol on certain occasions or altogether is driving no over low alcohol growth,” said Susie Goldspink, head of no and low alcohol at the IWSR. “Pair this with the rise of functional beverages – often containing ‘mood-enhancing’ adaptogens or nootropics – and the result is a strong outlook for no-alcohol.”

The IWSR also noted the rise of a ‘maturing consumer base’ for no & low, thanks to growth among millennials.

Now the largest age group for the category, millennials are normalising the switching between alcohol and low & no, both during the same drinking occasion and different ones. Across age groups, 78% of consumers of low & no products also drink full-strength alcohol.

The IWSR counts the UK among the world’s most valuable low & no alcohol markets, alongside Germany (the most valuable), Japan, Spain and the US. However, it will still take a long time before the category becomes ‘mainstream’.

Despite the rapid uplift, the category accounts for just 2% of total beverage alcohol sales globally, worth $11bn in 2022. According to CGA, the low & no category accounts for a small proportion of the alcoholic drinks sales in the on-trade (0.4%). Yet, the figure has grown significantly over the past three years, and is now worth a total of £26.9m in the UK, up by 57.2% since 2019.

There was certainly a major upswing in low & no visibility, last year. London now has its own mindful drinking Mecca in Club Soda’s new Low & No Tasting Room – a first of its kind retailer in the UK, which opened in Covent Garden in November, offering 150 brands from wine to beer and premixed cocktails. As we go forwards, the drinks industry seems to have only scratched the surface of low & no.

For the full picture of low & no, and its road to becoming a fully realised drinks category, be sure to read the January edition of Harpers.

As retailers gear up for an influx of consumers in search of gifts, Rachel Badham explores how the drinks industry is giving gifting a refresh

With 2022 marking the first Christmas free from Covid-related restrictions, it seems probable that decadent seasonal celebrations and gifting galore will be back on the consumer agenda. 

However, as the cost of living crisis puts a dampener on the first Christmas out of the shadow of Covid, will consumers turn their backs on the gifting category and opt for more budget-friendly options? 

“Value for money is obviously critical as we all face the cost of living crisis. Buy less, buy better is our motto this year,” says James Bell, head of marketing at gin producer Masons of Yorkshire. But that doesn’t mean consumers are only being led by value. 

Carmen O’Neal, founder of London gin maker 58 & Co, thinks that while higher-end brands and retailers have no cause for concern, it is key to communicate quality to consumers. “More than ever, quality and provenance are going to be important,” she says.

“Consumers are going to be very conscious of how and what they spend their money on, so the quality and story behind the liquid is important.” Regardless of economic pressures, it seems that the trade is prepared for a successful Christmas following the Covid-19 pandemic. 

Becky Davies, head of commercial at spirits distributor Ten Locks, believes that consumers are all set to indulge when it comes to gifting. “People haven’t had a full-on, let-loose Christmas for three years, and they’re ready to enjoy it,” she says. 

“This year, despite the tough times coming down the road, we expect a ‘keep calm and carry on’ approach to celebrations.” 

To stand out from the crowd, Davies says it’s all about delivering a range that inspires excitement among consumers in search of a gift.  

Sam Jeveons, co-founder of Nusa Caña Indonesian rum, agrees, saying that gifting is often led by emotion or social values. “Brand characteristics can be thoughtfully curated ability to personalise a spirit bottle gift purchase,” he says. 

“This way, the gift can be matched with the personality of the recipient, whether it’s offering something adventurous with an off -the-beaten-track option, complementing their social values with a sustainable gift, or simply providing something that matches their energy.” 

And, as sustainability continues to be a priority for consumers, Jo Taylorson, head of marketing & product management for Kingsland Drinks, is confident that Christmas shoppers will continue to trade up “to a brand that gives back in some way or has a clear sustainability/social responsibility agenda”. 

A NON-TRADITIONAL CHRISTMAS 

For many brands and retailers, the appeal of something different is likely to be a key driving force in the gift market this year, with Masons of Yorkshire’s Bell saying that “in an increasingly competitive market, consumers are looking for products that are unique in terms of the flavours they offer”. 

While bottles of sparkling wine have long been the Christmas gift of choice for drinks fans, many brands believe that this Christmas is the spirits industry’s time to shine, with 58 & Co’s O’Neal suggesting that it’s time to switch up exhausted gifting options with emerging categories.  

“I think vodka and tequila could be big when it comes to gifting for Christmas this year,” she says. 

Julian Howard, off -trade controller at Ten Locks, echoes this sentiment, highlighting dark spirits, such as whisky, as ideal gifting options for consumers who are still caught up in the home cocktail craze. 

“Winter always comes with an appetite for dark spirits, which naturally lend themselves to the colder months and do well neat or at the heart of richer cocktails,” says Howard.  

Jonathan Grey, Co-op spirits buyer, also expects rum to see high demand this Christmas, as well as vodka, with “flavoured innovations” driving sales. 

For the adventurous drinker, Saskia Meyer, marketing director at Fever-Tree, recommends flavoured mixers as gift options, allowing consumers to add an unusual twist to their festive tipples. 

Meyer says Fever-Tree has noticed consumers “becoming more and more experimental with their drinks”, adding: “We believe offering variety and choice is key to making the most of gifting this season, which is why we’ve broadened our mixer range beyond gin and tonic to offer something for the vodka fans, whisky lovers and rum drinkers this Christmas.” 

However, Tom Holmes, senior customer marketing manager for Kopparberg, thinks for the simplicity-seeking customer, RTDs deserve a space in the gifting department.  

“RTDs offer perfectly mixed spirits and cocktails without having to invest large amounts or buy multiple products, making them a cheap and convenient solution,” he says. “They are also ideal for many of the drinking occasions that Christmas presents.” 

Jamie Waugh, head wine buyer at Fortnum & Mason, expects low/ no to make its mark in the gift season and thinks sparkling tea could be a popular alternative to alcohol. Looking beyond bottles, Santa Ana gin founder AJ Garcia predicts that experiential gifts will begin to take off in the drinks world. 

“Beyond a product offer, I could see brands also offering immersive experiences as well, such as distillery tours, online classes and the like. Experiences like these can bring consumers much closer to a brand.” 

In a similar vein, The Wine Society offers the option to give a membership, with director Pierre Mansour describing it as a “no-brainer” present for wine lovers that will last beyond the holiday season.  

OLD FAVOURITES 

Despite the popularity of non-traditional gifting options, Christmas classics and old-school festive flavours are still likely to be hits with consumers. 

According to Pernod Ricard UK, around 60% of shoppers are looking to give alcohol as a gift this Christmas, with wine and spirits expected to see soaring sales. And as consumers seek a taste of celebration after a turbulent few years, traditional seasonal appeal looks likely to endure when it comes to gifting. 

But even time-honoured gifting favourites can be given a boost with special-edition festive flavours and packaging. 

“Stocking seasonal SKUs creates interest and gives consumers another reason to shop,” says Kopparberg’s Holmes, highlighting the brand’s Spiced Apple cider. 

58 & Co’s O’Neal also thinks that seasonal interest is the best way to give traditional choices a refresh: “It’s important to think about small-batch and seasonal products that can’t be bought all year around. Also, make the most of the festive packaging.” 

It seems classic gift options are as popular as ever in wine, with Kingsland’s Taylorson saying that Old World wines are always a favourite at Christmas.  

A spokesperson from the gifting team at Virgin Wines suggests sprucing up classic wine offerings by adding a touch of personalisation: “We recently launched a wine and gin personalisation gift service. Consumers like to send sentimental gifts and a bespoke label on a luxury bottle is a fantastic option. In some circumstances, personalised gifts can also provide a little whimsy and entertainment.”  

Which, it seems, might be exactly what consumers are in need of as economic tensions mount. And as the drinks industry feels the pressure of financial uncertainty, Ten Locks’ Howard thinks Christmas gifting might provide a chance for brands and retailers alike to end 2022 on a high. 

“This Christmas isn’t a tale of doom and gloom”, he says. “It’s one of opportunity and thinking beyond the season and how you can keep momentum with the right range.”

Related articles:

The past few years have been turbulent to say the least, and many people are unsure about what’s coming next for the world of drinks brands and retailing. 

In the latest of YesMore’s regular series, four industry experts – a drinks marketer, an audience researcher, a drinks buyer and a drinks brand – shed some light on what they think will be the major developments in the industry in 2023.

Zara Irving, head of client services, YesMore drinks marketing agency

It’s been a challenging year for marketers in 2022, with the effects of Brexit, changes in government, the impact of the war in Ukraine on production costs and a rise in the cost of living. 

On a more granular level, it’s now much harder to track sales from digital ads with the introduction of more cookie restrictions. The bad news for 2023? The cost of living crisis remains front of mind, and consumers will be much more selective about the drinks brands they purchase. 

The good news? If you’re a retailer, they’re likely to come to you as they hold back on spending in the on-trade. 

For brands, there are still lots of ways to resonate and connect with audiences through marketing. Point-of-sale and paid-for media will move further up to the top of the funnel, focused on driving brand recognition rather than at the pointy end of driving awareness into conversions. Paid-for social media ads will grow email databases, which will in turn drive conversions. 

However, I predict that by 2024 consumers will be sick of email newsletters and percentage discounts. Social media platforms will double down on their ecommerce functionality, most likely led by Elon Musk and his new toy Twitter. And I can safely bet we’ll all continue to cringe as Instagram continues to copy Tik Tok’s features.

Rebecca Ironside, qualitative director, Made You Think Research

The current economic climate is forcing consumers to make spending decisions on shifting sands. This makes trying to predict trends and behaviour more difficult, but by staying close to consumers and their lives, we can get a good sense of their future intentions. 

Consumers love the freedom of going out again, but as costs rise, or disparities emerge in their social circle’s incomes, this is likely to be reduced in favour of spending time in their own or other people’s homes. We expect to see a continued elevation of in-home drinking, with an ongoing growth in home bars as spaces to display and enjoy drinks. 

In spirits especially, consumers are seeking differentiation and talking points around bottle design, brand story and flavour. While consumers are being watchful about spending, there is a desire to reframe alcohol spend as less-but-better, which means choosing premium brands for sipping and, perhaps, trading down for mixed drinks or cocktails. Brands can offer reassurance on aspects like taste and the drinking experience, which in turn offer value. 

Switching to a cheaper brand but getting less enjoyment can feel like an expensive mistake, which no one can afford to make these days.

Joseph Turner, buying manager for wine & spirits, The Co-op

With the cost of living at a record high, consumers are expected to channel their spend into two main areas next year: well-known brands and private label. 

Shoppers will look for the reassurance of a trusted brand to ensure they aren’t disappointed. This could lead to less-frequent experimentation in wine and spirits and a shift towards the category stalwarts. 

In equal measure, customers will be seeking out great value, so retailers’ private labels and exclusive ranges will need to be competitively priced. We expect growth in the popularity of great-value offerings from eastern Europe, especially labels which promote much-loved grape varieties. 

Our recent listings of Moldova’s Tilting Tree Merlot and Sauvignon Blanc, which retail at £6 a bottle, are great examples of this. 

Within spirits the demand for flavour shows no sign of slowing down and we expect to see further innovation launching in 2023. What’s exciting is that it’s not limited to one category, with pretty much every major spirits segment getting in on the act, from the resurgence of fruit vodka through to more complex flavour profiles, such as Tamnavulin Cabernet Sauvignon Cask Edition Speyside single malt, which launched exclusively in The Co-op.

Matt Price, product and brand manager, Salcombe Distilling

Purpose is the word for 2023. Purpose-led brands will continue to take centre stage next year as consumers are gaining more understanding of environmental and societal issues, and know more about their health. 

Brands will need to be clear and confident in their offerings, as the ever-savvier consumer starts to recognise messaging with connotations of greenwashing or fake health claims. On top of this, with the cost of living crisis set to continue, purchases will be made more carefully, with extra thought going into why a specific brand or product should be chosen to be consumed, shared with friends or family, or posted on social media. 

Authentic brands that genuinely care about the planet and the people who live on it will need messaging that’s honest, simple and concise, whether it be about supporting a cause or a health-focused functional ingredient. Every drinks brand has the ability to become a pro-planet brand if it correctly aligns its values. 

When it comes to functional ingredients and health-focused messaging, it’ll largely fall to the exciting low/no space, although full-strength alcohol brands can win by promoting responsible drinking and focusing on the purpose of the occasion. Consumers will purchase and consume brands that they know are good for themselves, good for their communities and good for the planet.

Related articles:

As Christmas rapidly approaches, drinks retailers have shared the most popular choices among consumers, from old favourites to emerging categories that look set to become festive staples. 

In the wine world, Majestic suggests that the Cava resurgence will see bottles of the bubbly fly off shelves this Christmas. The retailer notes a 17.33% increase in global Cava sales between 2020 and 2021, and Majestic is anticipating high sales among those who are looking for a more wallet-friendly alternative to Champagne. 

However, Majestic still suspects that more traditional options such as Champagne and English sparkling will remain a fan favourite. 

Elsewhere, emerging wine regions, notably Greece, have proved a hit with Majestic’s customers who are seeking a balance between value and quality.

Turning to spirits, Majestic has recorded a 7% rise in flavoured liqueurs year-on-year, with 2022 continuing to see upward growth in the category. While classic options such as cream liqueurs are still going strong, the retailer has noted a 30% year-on-year rise in Calvados sales as the “underdog” spirit attracts new audiences. 

Elsewhere, online retailer Master of Malt has declared rum as the spirit of the year, having seen an 150% increase in sales of flavoured and spiced rum from April 2021 to April 2022. Similarly, tequila has boomed in recent years, with Master of Malt recording a 578% rise in tequila sales (for bottles >£150) over the past two years.

Looking beyond Christmas, Master of Malt suspects that English whisky will continue its upward trajectory in 2023 providing that the market does not become oversaturated with options. 

And as the low/no category consolidates itself as a powerful player in the industry, Majestic predicts that low/no options will see success this Christmas and beyond. 

Related articles:

Market overview

The U.S. was the world's second largest beer market in 2021, with US$104.9 billion in sales. U.S. beer sales were stagnant from 2016 to 2021 but are expected to grow at a CAGR of 5.0% over 2021 to 2026. U.S. beer sales are expected to reach US$133.7 billion by 2026.

The U.S. beer market is dominated by lager, which saw US$84.0 billion in sales in 2021, accounting for 80.0% of total beer sales in 2021. This category is expected to see a of CAGR 3.9% in sales over 2021 to 2026, with premium lager expected to grow the fastest by a CAGR of 5.8%. The fastest growing beer categories over 2021 to 2026 are expected to be no/low alcoholic beer at a CAGR of 11.4%, followed by stout (8.9%), and dark beer (8.6%).

Non-craft beer sales in the U.S. have been slowly decreasing while craft beer sales have seen a slow increase over 2017 to 2021. Craft beer took a major hit during the pandemic, with foodservice closures affecting its main points of sale. However, according to Euromonitor, craft beer sales are expected to return to prepandemic sales levels and then some. Craft beer performed better in 2021, a year when U.S. consumers were not only itching to get out and socialize but they wanted to specifically support local bars/pubs and were willing to pay premium prices to do so. Craft beer has also benefited from multiple trends that work in its favour, from premiumisation to innovative flavours and the reopening of sales channels. Pandemic related challenges facing craft beer include supply chain issues and the cost of ingredients, which are rising; as well as space issues - where to store packaging that must now be purchased by the tonne in order to fill an order.

Off-trade and on-trade

Over 2016 to 2021, on and off trade in the U.S. beer market has seen a role reversal with off-trade now exceeding on-trade, representing 54.7% of the market. On-trade sales fell over 2016 to 2021 by a CAGR of −2.9%, while off-trade sales grew by 3.7%, as on-trade took a major hit during the pandemic, with closures affecting beer sales at bars and restaurants and with consumers staying at home.

Over 2021 to 2026, on-trade is expected to see faster sales growth by a CAGR of 7.3% as it rebounds from the pandemic, reaching US$67.5 billion in 2026. Off-trade sales are expected to grow more slowly by a CAGR of 2.9% reaching US$66.2 billion by 2026. Numerous beer categories, especially dark beer, stout, and low/non-alcoholic beer, are expected to see the fastest on-trade sales growth.

Distribution channels

In 2021, the market share of store-based retailing totaled 91.3% with most U.S. consumers purchasing beer from forecourt retailers (gas stations), supermarkets, and traditional grocery retailers. Sales at other grocery retailers grew fastest among store based retailers, by a CAGR of 20.8%, followed by discounters (12.5%), and mass merchandisers (12.0%).

E-commerce beer sales grew the fastest amongst all retail distribution channels, at a CAGR of 35.1% over 2017 to 2021, with growth spiking in 2020. According to Rabobank, in addition to consumers' adoption of E-commerce during the pandemic, changes in U.S. state laws have also buoyed growth in alcohol sales in grocery and E-commerce channels. Ten states representing 12% of the U.S. population have so far passed laws making it easier for grocers to sell alcohol online (particularly by enabling third party delivery) and increasing the market for online alcohol sales.

Competitive landscape

In 2021, the top ten brands in the U.S. represented 59.7% market share. Among them, Michelob Ultra saw the highest market share growth at a CAGR of 17.5% over 2017 to 2021, followed by Modelo (15.4%).

According to Euromonitor, consumers are becoming more mindful of what they drink, and this can be seen with the uptick in sales of no/low alcohol beers, which have growing rapidly. In response, companies are investing in innovative products with claims that meet consumer demands. For example, Anheuser-Busch InBev has announced it is launching the first zero carb beer, Bud Light Next.

Companies such as Athletic Brewing Co and Heineken have also seen immense growth of their non-alcoholic beer brands. Athletic Brewing Co is set to open another facility in California with the backing of notable celebrities and athletes, while AB InBev has pledged one fifth of its total production to go towards the no/low alcohol segment by the year 2025.

U.S. beer drinkers are also shifting to higher quality ingredients out of concerns over ingredient sourcing and sustainability. The pandemic has made consumers develop a more compassionate mindset about community, caring more for the environment, labourers, and supporting smaller businesses. There is an increased willingness to pay more for commodities if it means a higher quality product. The craft industry is expected to largely benefit from this trend, as consumers seek to support local businesses, as well as receive a higher quality beer with fresh ingredients.

Foreign beer in the United States

In 2021, the US imported US$8.3 billion in beer, growing at a CAGR of 4.7% over 2017 to 2021. Top three supplier markets were Mexico (75.1%), Netherlands (12.0%), and Belgium (3.7%). Canada was the fifth largest beer supplier to the U.S. at a value of US$129 million.

Over 2017 to 2021, American imports of Canadian beer decreased from US$150 million in 2017 to US$129 million in 2021, at a CAGR of −3.7%. Sales of beer in kegs fell the fastest by a CAGR of −11.0% followed by canned beer (−5.2%).

New product launches

Over 2017 to 2021, 299 craft beer products were launched to the U.S., with the greatest number of new products introduced in 2019. The most popular product claims were environmentally friendly packaging and recycling. Dogfish Head Craft Brewery launched the greatest number of products, followed by Boston Beer.

Examples of new products

Light Craft Lager

Source: Mintel GNPD

Company	Saint Archer Brewing
Launch type	New product
Price in US dollars	14.99
Product description	Saint Archer Gold Light Craft Lager contains 95 calories and 2.6 carbs per can. The product retails in a recyclable pack, containing 12 12 ounce slim cans.

Claims: Ethical (vegan / no animal ingredients, social media).

Pecan Porter

Source: Mintel GNPD

Company	(512) Brewing
Launch type	New product
Price in US dollars	9.99
Product description	(512) Brewing Co Pecan Porter is described as a robust porter brewed with organic Texas pecans and carbonated using Earthly Labs CO2 collection system, which collects and purifies CO2 directly from primary fermentation. The vegan conscious craft beer is 83% organic, and retails in a recyclable pack of four 12 ounce bottles with YouTube link. The brewer is part of the Certified Independent Craft Brewers Association.

Claims: Organic, Ethical (environmentally friendly package, vegan/no animal ingredients, recycling), Social media.

Mama's Keys Key Lime Pie Gose

Source: Mintel GNPD

Company	Crowns & Hops Brewing Co.
Launch type	New product
Price in US dollars	5.99
Product description	This vegan friendly product has been brewed with key lime puree, cinnamon, coriander, sea salt, vanilla, and graham crackers. It retails in a 1-pint pack featuring a QR code and the Certified Independent Craft Brewers Association, Instagram, Facebook and Twitter logos.

Claims: Ethical (vegan/no animal ingredients, social media).

Black Is Beautiful Imperial Stout

Source: Mintel GNPD

Company	Weathered Souls Brewing
Launch type	New product
Price in US dollars	9.98
Product description	Weathered Souls Brewing Co. Black Is Beautiful Imperial Stout is said to be brewed to support justice and equality for people of colour. The kosher product retails in a 100% recycled and recyclable pack of two 1 pint cans, bearing the Independent Craft Brewers Association Certified logo. The manufacturer claims to donate 10% of profits to organizations dedicated to racial equality.

Claims: Kosher, Ethical (environmentally friendly package, charity, recycling).

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They also suggest implementation of educational and awareness programmes, and collaborative risk communication among industry stakeholders, following study results that show adverse effects from current levels of caffeine, taurine, and D-glucuronolactone in EDs.

Approximately 12% of adult Europeans (including 13.3% of ‘young adults’) describe themselves as regular consumers, drinking EDs four to five times a week or more and consuming a mean average volume of four to five litres per month, according to the authors of a study on volume intake and potential risks.

Writing in 'Nutrients',​ they explain that consumption likely increased during Covid-19 to alleviate stress, boredom, and improve alertness and highlights the urgent need for increased regulation and greater transparency, given recognised safety concerns.

“There is a global growing concern about the potential risks and the existing low-risk perception associated with these drinks. In general, the evidence correlates EDs with a significant increase in the odds of insomnia (and jitteriness/activeness), anxiety, depression, impulsivity, and poor academic performance, among others,”​ they say.

Labelling is also inadequate and often completely excludes taurine and D-glucuronolactone (as well as other compounds that may exert negative effects) from ingredient lists, they assert.

Health risks​

Caffeine can affect cardiovascular, haematological, neurological, and psycho-behavioural mechanisms, provoke sleep onset latency, and cause sleep deprivation. It is also known to induce moderate physical dependency and tolerance, the authors say.

Current ED concentrations range from 15 and 55 mg per 100 millilitres (mL), and average 32 mg/100 mL, although the three standard (commercial) volumes are 250 ml, 333 ml, and 500 ml. European Food Standard Agency (EFSA) safety guidelines suggest no more than 400 mg daily per 70kg body weight (b.w.). 

On the other hand, standard ED levels for D-glucuronolactone and taurine are 2,400 mg and 4,000 mg per litre, respectively. The no-observed-effect level (NOAEL) for D-glucuronolactone intake is currently 1,000 mg per kilogram body b.w. daily, while taurine is broadly considered safe at daily reference levels of 1,400mg per 70kg b.w.

The authors assert that although dietary exposure to D-glucuronolactone is generally low (1/2 mg/day), over-consumption has been linked to unspecified renal lesions in rats and raised concerns about safety.

Furthermore, while taurine helps modulate neurological activity and has antioxidant and anti-inflammatory properties, an excess can affect cognitive and behavioural activity in young adults. In addition, supplementation is not advised in healthy individuals due to the low risk from acute oral toxicity, while experts are also concerned by the progressive increase in concentrations since products were first commercialised.

Protocol​

Dietary exposure of three consumer profiles based on body weight (40, 60, and 80 kgs) and three standard ED volumes were evaluated. EDs contained standard levels of caffeine (32mg/100ml), taurine (4,000mg/L), and D-glucuronolactone (2,400mg/L).

Health risks from exposure to caffeine and taurine were performed by assessing estimated daily intake (EDI) with established reference intake levels and known adverse effects.

D-glucuronolactone risk characterisation was determined by calculating the margin of safety (MOS) using the NOAEL and EDI.

High caffeine intake​

Caffeine EDI varied from 80 mg per 250 ml volume and 160 mg with 500 ml. This is higher than previous reports that note daily intake of 22.4 mg for adult EU consumers and 48.3 mg for high chronic users, for example, the authors explain.

Results suggest that consumers with a body weight of 40 kg are at risk from sleep disorders with consumption equal to or higher than 250 ml and sleep disturbances, as well as general adverse health effects, with daily 500 ml intake.

Equally, individuals weighing 60 kg were more likely to suffer from sleep disorders with intake higher than 250 ml, although the authors note that intake below 500 ml did not affect overall adverse health effects. In addition, sleep disturbances may be avoided by limiting intake to 333 ml for those weighing 80 kg, and none of the scenarios affected general health in this demographic.

Risk characterisation​

Findings for D-glucuronolactone also revealed higher intake compared to previous studies on EU consumers, but risk characterisation indicated high ED consumption (up to 500 ml) reduced MOS.

“Results do not support the EFSA statement based on the NOAEL established for the toxicological effects of D-glucuronolactone (1000 mg/kg b.w./day) which reported that dietary exposures at the levels present in EDs are not a health concern for a person of a 60 kg body weight, even when the chronic consumption of EDs is high (350 mL/day),”​ the authors write.

Nevertheless, they maintain health risks from any exposure to D-glucuronolactone would be expected for those with low body weight (around 40kg).

Communication measures​

Finally, intake estimates for taurine were five times higher that reported by the EFSA for adults in 2013 and was attributed to increased concentrations in product formulas.

Therefore, consumption of 500 ml (that contains 2,000 mg of taurine) exceeds the reference intake for individuals with a 40 kg body weight, “posing a health risk that may require management and communication measures”​ and exposes heavier consumers (80 kg) to associated health risks, the authors say.

“It is undoubtedly necessary to advance in the establishment of a legal framework for EDs in Europe that includes the setting of maximum contents of active ingredients, to monitor the dietary exposures to all the active components and not exclusively caffeine and to improve the information to consumers,”​ they conclude.

Source: Nutrients​

Published online, December 1, 2022: http://doi.org/10.3390/nu14235103​

‘Caffeine, D-glucuronolactone and Taurine Content in Energy Drinks: Exposure and Risk Assessment’​

Authors: Carmen Rubio, Montaña Cámara, Rosa María Giner, María José González-Muñoz, Esther López-García, Francisco J. Morales, M. Victoria Moreno-Arribas, María P. Portillo and Elena Bethencourt

By James Bayley

Published:  01 December, 2022

The research reveals that bar professionals consider the target market for no/low alcohol drinks is people wanting to moderate their intake, rather than those who are teetotal.

Carl Anthony Brown, CROSSIP founder & master of Liquid, said: "This survey has spoken to a broad mix of industry professionals, across the different regions and venue styles that we have in the UK. We’re excited to partner with CGA, the UK’s leading on-trade insight consultancy, to bring this ground-breaking piece of research to the industry."

According to said survey, nearly nine in 10 (88%) bars now offer no or low-alcohol drinks, and a significant proportion (75%) of team members consume these drinks personally. Two in five (41%) professionals think no/low spirits will see the fastest growth over the next five years, putting it well clear of other categories like beer (24%) and wine (23%).

Anthony Brown added: "While it may seem bars, hotels and restaurants may respond to consumer demand, we know that those in the front and back-of-house control where drinks and drink trends are created. They are the true purveyors of the No&Lo message to consumers.

"With 88% of on-trade venues now offering no and low alcoholic alternatives, we believe that there is no-one as well-versed in the category as these hospitality professionals."

The report also highlights the many benefits to bars of a good range of no and low-alcohol spirits, especially for the growing number of drinkers who want to moderate their intake. Four in five (80%) bar staff agree that their primary target for no and low-alcohol drinks are those who are not teetotal, and a similar number (78%) think the category adds new occasions to people’s drinking habits, rather than replacing current ones.

Dave Lancaster, client director at CGA, said: “Bar professionals are helping to make the no and low alcohol category one of the most dynamic parts of Britain’s drinking-out market. Alongside consumers’ rising awareness of the range of quality of drinks that are available, it puts this segment in prime position for more success throughout 2023. Understanding consumers’ needs, optimising range and innovating in flavours and serves will all boost bars in what is set to be another tough and competitive year.”

The ‘Leading the Way in No/Low Spirits’ report from CGA and CROSSIP is available to download in full at https://cgastrategy.com/leading-the-way-in-no-low-spirits/.

By James Bayley

Published:  29 November, 2022

For the fifth month in a row, Lidl was the fastest-growing grocer in October, pushing up its sales by 20.9% during the period.

Lidl was marginally ahead of rival Aldi whose sales rose by 20.7%. Its share of the market is now 7.1%, up from 6.2% last year while Aldi moved to 9.3% from 8%.

Meanwhile, sales of supermarket's own label lines continued to grow as consumers moved away from branded products. Own label sales increased by 8.1% in October, while branded items declined by 0.7%.

For long-established brands, these trends might be a concern. However, the outlook for supermarket alcohol sales is not so closely aligned with grocery spending in other categories. 

For example, own-label grew its share of alcohol sales in grocers by just 0.1% in 12 weeks to 20 October (from 27.5% to 27.6%) compared to 2021, according to Kantar.

As for the discounters, branded alcohol has actually grown its percentage share of alcohol sales to 18.7% vs 17% in 2021.

Tom Miller, Amathus Drinks commercial director commented: “We haven’t noticed an increased demand for own-label products.

“In our eight Amathus Drinks stores and website, the demand for premium branded products has never been stronger. This is particularly evident on limited-release products, where demand outstrips supply many times over.”

Different propositions work for different consumers. Logistically, own-label requires a longer set-up time for the distributor because everything is done in-house. Ultimately, the brands with a clear identity and high consumer engagement through their own marketing strategies will continue to drive volume.

“It will be interesting to observe the future of own label products as the UK heads into a recession,” said Zippy Bąkowska, head of marketing at Enotria & Coe.

“If we compare to consumer buying patterns during Covid, when furlough and business closures meant that many people were on constrained budgets, we saw that consumers gravitated to trusted brands that were perceived to deliver reliable value, even if that wasn’t always at the lowest cost.”

Whether it's own label or branded wine, creating customer loyalty appears to be the biggest commodity in the BWS retail sector.

A more in-depth analysis of this feature will be available in the December edition of Harpers.

By James Bayley

Published:  30 November, 2022

According to new research by Unleashed, an inventory software provider, stock levels for beverage businesses are up 115% on pre-pandemic levels - above other huge categories such as electronics and telecommunications.  

The pile-up means many businesses within the drinks industry will become less profitable, as they struggle to convert their assets into cash.

Meanwhile, manufacturers are paying 10.24% more for their goods now compared to the start of 2022.

The data, provided by 4,500 SMEs, examined four main data points: the value of stock on hand, Gross Margin Return on Inventory (GMROI), fulfilment days and the price paid for goods purchased.

Bryony Hampton, content marketing lead at Unleashed, told Harpers: “The supply chain uncertainties brought about by first the pandemic and now Brexit and the war in Ukraine mean they can no longer be confident in when key ingredients will land. With this uncertainty, many have been producing more stock when they can and holding that stock so there’s no question that they can’t fulfill orders in a timely manner. Customers won’t wait, so they’re shouldering the responsibility. One Devonshire distillery has invested in several external rented containers next to the warehouse to house that stock."

The data relating to drinks is a mixture of alcoholic (56%) and non-alcoholic products and softs (44%), and includes the likes of Southwestern, Cotswolds and Salcombe. 

Beverage manufacturers (both alcoholic and non-alcoholic) saw the fourth biggest increase in stock-on-hand levels of any sector when comparing Q3 stock levels in 2022 versus the same period in 2019 - up 115.1% on pre-pandemic levels.

When looking at GMROI (down 36.7%), it's clear that beverage manufacturers are feeling the impact of holding more stock, with the majority of firms seeing a drop in overall profitability when looking at this metric specifically.

However, when looking at fulfilment times, beverage firms have remained fairly stagnant when compared to pre-pandemic levels (+2.45%).

Overall, stock-on-hand levels for manufacturers in the UK jumped by 99.7%, from an average of £365,736 in Q3 2019 to £730,681 in Q3 2022, while GMROI dropped from 2 to 0.9 in the same period, and fulfilment times fell from 20 days to around two weeks.