OTW, November 2008

Stella 4% launch

One To Watch

The rise of lower ABV Drinks

UPFRONT One to Watch,, November 2008, COMMENTS

Reduced alcohol content drinks have long been a taboo subject in licensed premises; often the axis for ridicule for those on the social side of the bar and a challenging concept, in terms of sales volumes, for those stocking them.

It’s hard to conclude what the problem has been, because there may have been many. Perhaps it all stemmed from the poor quality product range available, which hardly enticed venues to fill its fridges with them, and the ridicule was focused on the drinker’s apparent bad taste. Or most likely, it was the old British drinking culture popping up to point out that licensed premises are for ‘drinking’ in, and choosing less alcohol for the same money, isn’t proper ‘drinking’. Whichever reason it was, it’s an area of the market that has remained fairly stagnant since it initially developed in the early 1980’s.

Recently, something has shifted. This shift too cannot be pinpointed to one particular thing, rather a change in attitudes and culture that has prized the door open for a flurry of established brands to scuttle through, and see if their downsized ABV versions can capture a share of the developing market.

Attitudes towards diets and consumption have changed, driven by rising obesity and reports of a greater problem of binge-drinking. The nation is more aware of the content of their purchases in today’s society - it would be hard for them not to be, what with every product on the shelf stipulating exact levels of nutrition in weights, and even colour schemes for those who have forgotten their glasses. And the drinks industry has been targeted too, with units consumed being at the centre of the strategy. People regularly pop out to a bar to share a bottle of ‘ten units’ these days.

In reaction to today’s common slogan ‘know your limits’ and the message that too much alcohol is bad for you, comes an inclination to drink less, and in answer to that, is the search for lower alcohol alternatives. This is where the drinks companies step in, and although the on-trade has yet to see the level of new products that the off-trade has, it has seen some, and invariably the trends are the same.

Spearheading the new downsized ABV revolution is Becks Vier. Launched in the on-trade way back in March 2006, it was a distribution and promotion push two years later that brought it into the mainstream, and its popularity has gathered pace ever since.

Similar to Becks Vier, new Stella Artois 4% launched in the on-trade this month. Both are Inbev brands, and the company hopes the new Stella product can replicate Becks Vier’s success. Inbev commercial director, Philip Blanc commented: “Premiumisation is a key trend not just in beer but across all fmcg categories. This phenomenon has been seen in the beer category with the rapid emergence of the 4% premium lager sector.

“This launch will strengthen our lager portfolio going forward. We believe both Stella Artois brands will complement each other - offering consumers an improved choice and retailers a better return from their business.”

With Magners launching its Mild Strength (2.3%) version to the off-trade and ‘willing for it to go into the on-trade’, and Carlsberg introducing a 2.5% ABV version of its lager, is it just a matter of time before lower ABV options are the norm in bars and clubs throughout the UK?

NIGHT asked CGA Strategy chief executive, Jon Collins, for his thoughts on this trend for downsizing. He replied: “Introducing a lower alcohol variant of an established brand holds many attractions for producers, retailers and consumers alike.

“It can help occupy space on the bar top or in the fridge, bring all the benefits of brand extension and tap into the current health and social policy agendas. Fundamentally, it gives consumers more choice at a time when licensees are working harder than ever for every pound in the till.”

From: November 2008 Issue

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