More and more people are toasting alcohol-free at Christmas
Published: Thursday, Dec 21st 2023, 13:10
Updated At: Friday, Dec 22nd 2023, 00:59
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It doesn't just have to be orange juice: More and more people are toasting themselves with non-alcoholic drinks over Christmas and at New Year's parties. The alcohol industry has responded to this and is offering an increasingly wide selection.
Non-alcoholic beverages are still a small market in this country: the share of non-alcoholic beer is around 5%. However, the trend is clearly pointing upwards.
Established brands are also feeling the effects: The Danish brewery Carlsberg, which owns the Feldschlösschen brand, recorded sales growth of 8% for its non-alcoholic products in Switzerland in the second quarter of 2023, for example.
"Consumers everywhere want a healthier and more balanced lifestyle and this is reflected in their choice of drink," a Carlsberg spokesperson told the news agency AWP.
Market volume of several billion expected
According to the latest 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 alcohol-free is recognizable worldwide, and Switzerland is no exception," confirms a Campari spokeswoman.
According to a spokesperson for the spirits group Pernod Ricard, non-alcoholic beverages were responsible for sales of 2 million Swiss francs in the local market last year. Demand doubled within the space of a year. Non-alcoholic spirits were even the only category of the group to grow in the Swiss retail trade.
This should remain the case: "The outlook is extremely positive: the non-alcoholic spirits segment should see double-digit growth by 2026," said the spokesperson. Compared to countries with more mature markets such as the UK, Switzerland has a lot of room for growth.
Last year, Pernod Ricard founded an operational unit for non-alcoholic alternatives. It is also interesting for alcohol brands to serve this market from an advertising perspective, as non-alcoholic drinks are not subject to the same advertising restrictions as the original products.
Expensive production
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 distilled twice," says Christof Tremp, founder and CEO of the start-up Rebels 0.0%, which specializes in alcohol-free drinks. At the same time, customers are not prepared to pay more for non-alcoholic drinks.
Unlike some of its competitors, Rebels 0.0% does not use any alcohol in the production process. The end product therefore contains no alcohol residue. The head of the Zurich-based company, which was founded three years ago, says: "We are seeing strong interest in the cities, with a pronounced trend in the 30 to 45 age group and among women."
Tremp believes that completely alcohol-free cafés and stores could also become established in Switzerland: "Generation Y consumes 20 percent less alcohol than their predecessors, so there is a great need for alternatives," says the Managing Director. Meanwhile, Rebels 0.0% expects demand to be particularly high during the Christmas period and the following month of abstinence, "Dry January".
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