£32million NOLO opportunity for convenience retailer, says Asahi UK
Convenience retailers could increase sales of no- and low-alcohol beer by £660 on average per store in 2023, according to Asahi UK.
In grocery multiples, no- and low-alcohol makes up 2.9% of total beer sales, in comparison to impulse stores where it is at 0.7%. Raising sales of no- and low-alcohol beer to the same share as it is in grocery would generate £32m in sales for convenience stores (Nielsen Scan track MAT 10.12.22). Divided by the 48,590 convenience stores in the UK (Association of Convenience Stores Local Shop Report 2022), this is a £660 opportunity for each store on average.
Steve Young, sales director at Asahi UK, said: “The category is under-developed in convenience stores, but retailers can fix this by stocking just three key products to create a credible range.
“Retailers should offer Peroni Nastro Azzurro 0.0% 4x330ml as it is the top alcohol-free beer by rate of sale in impulse.” (Nielsen Scan track MAT 10.12.22)
Seventy per cent of no-and-low-alcohol beer sold in impulse stores is in four-packs, with this format growing at 30%. Single bottle is the second biggest segment with 6% of sales, but this area is declining at -7% (Nielsen Scan track MAT 10.12.22).
The analysis follows the most successful January on record for no- and low-alcohol products. No- and low-alcohol beer spiked to 4.6% of the beer market in grocery multiples in January 2023 vs 4% in January 2022 (Nielsen Scan track data to 28.01.23). Most of the growth is coming from new products, with Peroni Nastro Azzurro 0.0% and Guinness 0.0% adding the most value to the category.
“With increased awareness, media exposure and higher quality NPD, we should expect the no- and low-alcohol category to keep growing, in line with this trend, we launched Asahi Super Dry 0.0% earlier this year and its already proving to be a popular choice amongst beer lovers,” Young said.
In the 12 weeks to 28.01.23, no- and low-alcohol beer grew by 13.7% vs total beer at 0.6%. Heineken 0.0 lost value share as did Becks Blue. Guinness 0.0% and Peroni Nastro Azzurro 0.0% were the biggest beneficiaries, both growing their share.
Peroni Nastro Azzurro 0.0% 4x330ml has added more than £4m to the category since it entered the market , with more than half of the value of Peroni Nastro Azzurro 0.0% coming from new beer buyers .
Asahi Europe & International’s ambition is for 20% of its core product portfolio to offer alcohol-free products by 2030. Supporting this ambition further, the company launched Asahi Super Dry 0.0% in January 2023.