Sobriety speaking

By: Ipacs Tamás Date: 2024. 10. 18. 11:28

The segment of low-alcohol and no-alcohol (no-low) beverages is still small and limited, but it is growing quite fast. No-low drinks are more and more popular and in Hungary this trend is the most pronounced in the beer category.

This article is available for reading in Trade magazin 2024/10

Sales are growing around the world, mainly because of the health trends and the changing drinking habits of young people. A growing number of spirit brands launch no/low product versions, but often they enter the market under new brands – from well-known or lesser-known producers alike. According to IWSR data, the non-alcoholic spirits category is expected to grow by 7% between 2024 and 2027. Experts say the development of the no-low segment is driven by Generation Z: these consumers have a very different relationship with alcoholic drinks than older generations; they consume more moderately and are more receptive to trying non-traditional categories.

No-low offering at the British Waitrose

Alternativees

Ákos Bősze
HoReCa business
development executive
METRO

Ákos Bősze, HoReCa business development executive of METRO:

“Drinking habits have also been shaped by consumer campaigns and social media challenges such as Dry November and Dry January – both of them have to do with the overconsumption during the December holidays”.

The pioneer of alcohol-free and low-alcohol alternatives has been the beer industry, which underwent a boom in both product choice and quality in the past five years. Thanks to non-alcoholic wines, even the Hungaricum spritzer can now be included in the “zero version” offerings.

Non-alcoholic cocktails aren’t stuck with the virgin versions of the well-known cocktails: a good cocktail menu also includes unique non-alcoholic cocktails. In METRO stores alcohol-free and low-alcohol beers and sparkling drinks are the most popular.

Education is necessary

Tímea Berki
coffee and premium spirit
marketing manager
Coca-Cola HBC
Magyarország

Tímea Berki, coffee and premium spirit marketing manager of Coca-Cola HBC Magyarország:

“In Central and Eastern Europe the market of non-alcoholic spirits is still small, but it is growing dynamically, thanks to consumers becoming increasing open to trying a non-alcoholic variant of their favourite drink. However, due to manufacturing challenges, what we see is that only few brands bring the alcohol-free versions of their popular drinks to Hungary. We believe that education in this category is an important task”.

In Hungary gin was the first category where non-alcoholic variants were introduced. With the launch of Martini Vibrante and Floreale in April, Coca-Cola HBC Magyarország became the first to appear with a range of non-alcoholic vermouth drinks in retail channels – the former is a non-alcoholic version of Martini Bianco and the latter is an alcohol-free variant of Martini Fiero.

The company’s view is that recommendation can play a key role in the HoReCa channel, so they launched a “perfect serve” offer: a promotion for Martini Vibrante & Tonic and Martini Floreale & Tonic non-alcoholic long drinks.

Well-known and new brands

Attila Piri
marketing director
Heinemann

“The non-alcoholic spirit trend is new in Hungary, but just like the gin trend earlier, it is expected to catch on here as well. Today the feedback from professional circles is that in addition to gin, there is also interest in the non-alcoholic categories of whisky, rum and vermouth. Their growth won’t be fast, it will take time for these drinks to conquer both HoReCa and retail”,

says Attila Piri, marketing director of Heinemann.

Most of the top bars already have non-alcoholic spirits in their portfolios. Heinemann plans to launch a well-known brand of low-priced non-alcoholic gin.

Gyarmati Erika
key account manager
Panna Cocktail

“Looking at international trends, what we see is that non-alcoholic products are increasingly popular. In Hungary people get to like such products slower. Our experience is that products that are successful in hospitality will sooner or later turn up on the shelves of shops too”,

says Erika Gyarmati, key account manager of Panna Cocktail Kft.

The company believes it is the well-known cocktails that having the best chances for becoming popular in non-alcoholic versions. The Monin brand is often the first to create new trends or the quickest to react to these. As a response to consumer demand, Monin has added non-alcoholic mixers (Mojito, Piña Colada, Margarita) to its product selection.

Made from grapes

Bernadett Zsiros
owner-managing director
Mentes Bor

Bernadett Zsiros, founder, owner and managing director of the free-from online wine store Mentes Bor:

“At the Mentes Bor webshop we have been dealing with non-alcoholic wines since October 2022, which were completely new in the Hungarian market at that time. We are still talking about a niche market, but more and more companies are importing grape-based non-alcoholic beverages, which indicates very well fast the segment is expanding”.

They always stress that this product satisfies a specific need and it isn’t a replacement for its traditional alcoholic counterpart, but rather a way to open new markets. Mentes Bor offers products from Spain, South Africa, Chile, France and Austria.

It is very important that they sell quality products with as low a sugar content as possible, since the target group isn’t only pregnant women but also people living with diabetes. This year the company is averaging a sales increase of almost 400% compared to the same period last year. De-alcoholised wines are becoming popular in both the retail and the HoReCa sectors. //