The Alcohol-Free Wave
Despite all boozy stereotypes, Australians are drinking less and it isn’t a new trend. Over the past 15 years alcohol consumption in Australia has decreased from 10.8 litres per capita per year down to 9.4 litres, the lowest it’s been in 50 years. Particularly in younger age groups, reduced alcohol consumption has had the greatest impact: the number of people in their 20s choosing not to drink has grown from 8.9% in 2001 to 22% in 2019. La Trobe University found that the number of 18-24 year-old Australians who choose not to drink has doubled in the past 20 years too.
The reasons for this decline in alcohol consumption are varied. For some, cutting back has been reason enough. Binge drinking and the anxiety that ensues, as well as using alcohol as a coping mechanism are some reported reasonings behind reduced alcohol consumption. Unsurprisingly, many have noticed the toll of Covid lockdowns manifested in over-consuming alcoholic beverages and are looking for balance in this area. Whether this is simply a fad that couples well with the booming health and wellness trend or a change that will stick, there is no doubt that it has already made its dent in the alcohol industry.
With this shift in consumer attitude and behaviour, alcohol brands, at home and globally, are exploring alternatives. Carlton Zero, manufactured by industry giant CUB, was launched in August 2018, Heineken 0.0 in 2017, and Gordon’s released a no-alcohol gin last year. Alcohol-free beverages have spanned across the category, from beers and wines, to spirits and RTDs. Smaller brands have also leapt onto the bandwagon, and it has been the inspiration for many start-ups too. Major Australian retailers such as Dan Murphy’s and BWS stock alcohol-free products and echo the sentiment that the mindful drinking and sober-curious are becoming, if not, already are, mainstays in the alcohol industry.
How has this major industry change been reflected within the industry itself? First and foremost, the advent of new products to suit this trend came along, but now, brands are taking clear steps to show that they are hedging their bets on the alcohol-free market. Dan Murphy’s opened its alcohol-free bar titled Zero% by Dan Murphy’s in Hampton in March 2022. Serving up a range of alcohol-free wines, beers, cocktails and premixers, it is undeniably quite a statement that Australia’s biggest bottle shop has opened its own premise focused on alcohol-free beverages. It wasn’t Melbourne’s first alcohol-free bar: the first opened back in 2021, and there have been a few that have cropped in Sydney too. Heineken’s 0.0 bar comes to mind, launched in 2019.
CUB’s 2019 campaign tackled sugary soft drinks, encouraging consumers to choose Carlton Zero when choosing not to drink. In 2020, they launched another campaign centring Carlton Zero as an opportunity to rewrite the rules and traditional tropes of beer and beer advertising.
Lion’s XXXX Zero 2022 campaign had another interesting take, combining their alcohol-free beer with sustainability. Titled ‘Give A XXXX About Tomorrow’, Australia’s first alcohol-free, carbon neutral beer was publicised throughout murals in Queensland.
Even anecdotally, on a recent trip to Melbourne’s Good Food & Wine Show, it can be seen that alcohol-free beverages are well and truly on the rise. Interestingly, most of the ad campaigns we see pair the trend with social issues that are currently on the forefront, such as sustainability and the health and wellness movement.
Whilst it seems that mindful drinking is a rather polarising subject, the numbers show that it is one that is having an impact. The market’s response to it also shows that it isn’t a fad - tonnes of brands have brought out their own alcohol-free products, and even more start-ups are producing their own products that suit the market’s thirst. This trend is going against the grain of the alcohol industry’s previous direction, which makes its success even more fascinating. Currently we see supermarkets encouraging customers to shop online rather than in-store - another example of industries going against their own grain. Which industry will be the next to swim against its own tide?
Team Contributor: Olivia Greco
Get in touch: olivia.greco@arrowvane.com | Linkedin
Subscribe to The Quiver newsletter here