The Office of National Statistics last year revealed a fall in global alcohol consumption for the first time this century. It has been widely reported that the proportion of young people choosing to drink alcohol and smoke cigarettes is the lowest on record. Meanwhile, the preoccupation with personal image continues to rise at an alarming rate. Our fixation with our image and our health is forcing retailers and alcohol brands to stand up and take notice. It is a shift in attitude that is fast reshaping the food and drinks brand landscape with new category winners and losers. With it come new challenges and opportunities that will disrupt business as usual for traditional players.

Some no and low-alcohol brands have emerged on top and are, by nature, well placed to compete and cater to new consumer demand. In recent days we have seen Tesco roll out the largest NOLO (No and Low) alcohol section in its history, a decision that will accelerate growth and bring more visibility to the category as a whole.

The question remains how far and how fast the NOLO category will grow. Whilst 1 in 5 young adults in the UK have turned away from alcohol altogether, 4 in 5 have not. With the NOLO category accelerating, does this encroach on the territory of traditional alcoholic drinks? The increased preoccupation with health has not, as yet, created a nation of teetotallers so much as a nation of people that agree with (and actually abide by) the notion of ‘less is more’. 

Across no, low and traditional alcohol brands, we see resources pouring into new product development. Others are reassessing how they frame their ranges, concentrating funds and efforts on evolving the consumer experience on and off-trade.

The challenge for drinks brands looking to have a portion of the fast-growing ‘free-from’ (or ‘less-is-more’) pie will be to design products and experiences that don’t just ride the wave, but actually influence a shift in mindset and a resulting change in behaviour.

AUTHORS

Paul Brennan, Founding Partner, Missouri Creative

Stuart Wood, Founding Partner, Missouri Creative

Key take outs:

• Own the behaviour
  The brands that are seeing the fastest growth have greater ownership over the behaviours they influence and inspire.
• Be unapologetic
  Adopting an unapologetic approach - whether as a no, low, or traditional alcohol brand - is vital. Be proud of the preceding habit, behaviour, attitude you negate.
• Don't limit yourself to one category
  Whilst No and Low are fast growing categories, we are still seeing strong innovation within the alcohol sector. Success in one category does not rule out success in the other. 
• Always look to the future
  There is an undeniable shift away from artisanal aesthetics towards minimalist and medicinal visual design cues. Brands entering the market now must look ahead to what’s next.

THE RISE OF NOLO

Download the full report here