Why Liquor Stores Should Stock & Market Low Alcohol Beer & Wine
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In 2022, the no-alcohol and low-alcohol drinks market, led by low-alcohol beer and cider, has a sales value of $11 Billion worldwide. According to International Wine & Spirits Research (IWSR), “no- and low-alcohol beer/cider, wine, spirits, and ready-to-drink (RTD) products grew by more than 7% in volume across 10 key global markets” last year and will continue to grow.
The no-alcohol and low alcohol beer market is leading the surge and expected to account for 70% of growth in the no- and low-alcohol categories from 2018-2022.
Source: “No- and low-alcohol category value surpasses $11bn in 2022”, IWSR.
Low Alcohol Drink Market Growth Driven by Millennials
According to Statistica, In 2021, Millennials were the largest age group in the U.S., representing approximately 72% of the population – just ahead of Boomers at 70%. Millennials (66% of whom are employed full time) are a huge spending group and Millennials’ spending habits are influencing markets worldwide. In a 2021 Deloitte survey of 14,655 Millennials (and 8,273 Gen Zs), 26% of Millennials cited health care and disease prevention as their top concerns.
According to Sanford Health “Millennials: the ‘wellness generation’”, Millennials make healthier choices. eat healthier foods, exercise more and smoke less than any previous generation group.
Stocking What Millennials Want is Smart Business But You Need to Test
“Change before you have to.”
– Jack Welch, Chairman and CEO of GE 1981-2001.
It’s easy for private liquor stores to become comfortable with old ways of doing business right down to the products stocked. Millennials drinking habits are different than past generations and it’s inevitable that liquor stores SKU selection must also change.
A good example of shifting behaviour is “dry January”. A decade ago, most of us had never heard of the phenomenon. While dry January stats showed a decline in participation in 2023 – decreasing by 4% from 2022 – according to FoodDive, those who do participate “are more committed to their abstinence, with 7 in 10 saying they plan to take the whole month off from drinking alcohol.” Millennials participate in dry January more than any other age cohort.
No-alcohol beer, cider and wine availability and in-store visibility are cited by IWSR as “key barriers to further consumption for consumers of no/low [alcohol products]”. Liquor store owners often don’t know which SKUs to sell, where to display them on store shelves, or how to market them. Do they belong in their “parent” category (i.e., beer, cider), among soft drinks, or in dedicated displays? As liquor consultants, Thrive Liquor & Cannabis Advisors can’t provide a definitive answer that will apply to every liquor store. Your customers will show you the way, though. We recommend A/B testing sales and marketing of no- and low-alcohol products.
Let Thrive Advisors Guide Your No- and Low-Alcohol Selection & Marketing
If you need help choosing and marketing top-selling no- and low-alcohol products, speak to the liquor consultants at Thrive Liquor & Cannabis Advisors. We can guide you to popular SKU choices and help test in-store marketing strategies to find what works for your business.
