“Dry Christmas” – No alcohol at Christmas: Companies react to the trend – News


Contents

It doesn’t just have to be orange juice: more and more people are toasting themselves with non-alcoholic drinks over Christmas and New Year’s parties. The alcohol industry has responded to this and is offering an increasingly larger selection.

Non-alcoholic drinks are still a small market in this country: the share of non-alcoholic beer is around five percent. However, the trend is clearly pointing upwards.

The established brands are also feeling this: The Danish brewery Carlsberg, which owns the Feldschlösschen brand, recorded sales growth of eight percent for its non-alcoholic products in Switzerland in the second quarter of 2023, for example.

Legend:

More and more people are toasting alcohol-free at Christmas. (symbol image)

IMAGO/YAY Images

“Consumers everywhere want a healthier and more balanced lifestyle, and this is also reflected in their choice of drinks,” explains a Carlsberg spokesman to the AWP news agency.

Market volume expected to be several billion

According to current figures from the International Wine & Spirit Research Institute (IWSR), the non-alcoholic beverage category has been the most dynamic of all beverage categories over the past five years. By 2030, the market will have a volume of several billion dollars. “The trend towards freedom from alcohol can be seen worldwide, and Switzerland is no exception,” confirms a Campari spokeswoman.

Non-alcoholic alternatives for wine still need to be established


Open the box
Close the box

Wine is a special case in the growing market for non-alcoholic drinks. Despite increasing demand, it is still difficult to find wine alternatives that taste good without alcohol. Their development is ongoing, but there are various obstacles.

The first problem for producers arises when it comes to the name of their product. “The basic definition of wine from the International Organization of Vine and Wine exclusively includes a drink that is created through the complete or partial alcoholic fermentation of grapes,” says Hélène Noirjean, director of the Swiss Winegrowers Association Swiss Wine.

According to the organization, the minimum total alcohol content is at least 7 percent. Non-alcoholic wine cannot therefore be called “wine”, she says. Common terms include “wine-based drink”, “de-alcoholized wine” or “alcohol-free wine”, although – unlike “wine without alcohol”, which may not contain any alcohol at all – such wines may have an alcohol content of a maximum of 0.5 percent.

Another obstacle is the strong fragmentation of the wine market. Unlike the markets for beer or spirits, the wine market is hardly dominated by large, international corporations.

This is exactly what would be beneficial for the development of non-alcoholic wine. “A multinational company has the means to invest sufficiently in research and development in order to end up with a satisfactory product,” says Ettore Müller, commercial director of Gialdi Vini in Mendrisio, who has written a dissertation on the subject.

At the spirits company Pernod Ricard, non-alcoholic drinks were responsible for sales of 2 million francs in the local market last year, according to a spokeswoman. Demand has doubled within a year. Non-alcoholic spirits are the only category in the group that has grown in Swiss retail.

It should stay that way: “The prospects are extremely positive: the non-alcoholic spirits segment is expected to grow in the double-digit range by 2026,” said the spokeswoman. Compared to countries with more mature markets such as Great Britain, Switzerland has a lot of scope for growth.

We are seeing strong interest in cities.

Last year, Pernod Ricard set up an operational unit for non-alcoholic alternatives. It is also interesting for alcohol brands to serve this market from an advertising perspective, because non-alcoholic drinks are not subject to the same advertising restrictions as the original products.

Expensive to manufacture

However, there is a dilemma when it comes to price: “The production of our drinks is more expensive than the equivalent with alcohol because they have to be double distilled,” says Christof Tremp, founder and managing director of the startup Rebels 0.0%, which specializes in non-alcoholic drinks. At the same time, customers are not prepared to pay more for non-alcoholic drinks.

Generation Y consumes 20 percent less alcohol than their predecessors.

Unlike some competitors, Rebels 0.0% completely uses no alcohol in the manufacturing process. That’s why the final product contains no alcohol residues. The boss of the Zurich company, which was founded three years ago, says: “We are seeing strong interest in the cities, with the trend being pronounced in the 30 to 45 age group and among women.”

In Tremp’s opinion, completely alcohol-free cafés and shops could also become established in Switzerland: “Generation Y consumes 20 percent less alcohol than their predecessors, the need for alternatives is great,” said the managing director. Meanwhile, Rebels 0.0% expects particularly high demand during the Christmas period and the following month of abstinence, “Dry January”.

source site-72