The Oracle: Issue #2

THE ORACLE - OCTOBER ISSUE - #02
THE DECLINE IN
3.7M
Brits ruled out a
specific venue due
to poor alcohol-free
options
Does it surprise you that as many Brits moderated their alcohol
income this summer as in ‘Dry January’?
Many are planning to continue
‘moderating’ their drinking across
the upcoming festive season, with
44% of Brits intending to drink less
alcohol during Christmas 2023
compared with 2022. KAM’s recent
report, in partnership with Lucky
Saint, found actively moderating
alcohol consumption is now a yearround
habit for UK adults.
It seems that moderation has hit
the mainstream!
There has been a significant
fall in the number of UK adults
consuming alcohol at least once
a week, with the figure now at
76.9% (down from 90% in 2022).
This equates to a drop of 6.8m
people drinking weekly, with all age
groups reporting a decline in overall
alcohol consumption. Within the
18-24 age group – a core age group
for competitive socialising venues
- the figure has fallen fastest, from
91% in 2022 down to 72% this year.
This coincides with a whole raft of
new consumers entering the low
and no category within the last year
- with 9.7m UK adults (19% of UK
adults) trying low and no alcohol
beer for the first time.
Moderation has most certainly hit
the mainstream and it’s part of a
bigger shift in how we, as a nation,
are spending our leisure time.
We now see a modern consumer
where socialising is not as centred
around drinking culture, who is
more aware of the risks of alcohol,
and therefore is pro-actively taking
action to ensure that they are
drinking at what they consider to
be responsible levels.
But consumers don’t want to miss
out on all the occasions where
alcohol is normally present – going
to the pub with friends, celebrating
a birthday at home, or enjoying
a beer while watching sport, for
example. The increasing number
of low alcohol or alcohol-free
options available is therefore being
welcomed with open arms. 30% of
Brits intend to consume alcoholfree
options over the festive period
e.g. alcohol free wine or beer – and
this rises to well over 1-in-3 in the
millennial age bracket.
Despite this long-term growth in
low or alcohol-free occasions,
venues are still at risk of losing
customers, by giving them an
underwhelming experience and
not maximising potential sales
on these low or alcohol-free
occasions due to poor range and
visibility. 3.7 million Brits ruled out
a specific venue in the last three
months alone due to poor alcoholfree
options: totalling a missed
opportunity of over £590.4m
in revenue across the year for
hospitality venues.
During a recent chat with Luke
Boase, founder of Lucky Saint,
he highlighted that “whilst the
low and no market continues
to see tremendous growth, the
opportunity for the UK remains
significant. We trail behind many
European nations in how we
embrace low and no, with the likes
of Spain, Germany and Sweden
having larger market shares for low
and no consumption compared to
the UK.”
Simon Farrow, Category Director
for Tao Hospitality Group (who’s
portfolio includes Hakkasan),
have already taken the bold and
innovative step to ‘zero proof’ their
entire cocktail menu, providing
like-for-like equivalents across the
whole range. Simon proudly states
that “1 in 8 of our cocktails are now
alcohol-free. That’s a £4 to £12
spend increase compared with
people ordering sparkling water
when they don’t want alcohol.”
Venues must ensure they stay
ahead of the curve, or they risk
becoming less relevant for many
potential customers, particularly
Gen Z and Millennials, who tend
to make up the largest proportion
of all competitive socialising
venue customers. The research
shows that socialising in the UK is
gradually becoming less alcoholdriven
and more activity-led.
LATEST RESEARCH
BOOZE-CENTRED
SOCIALISING
Katie Jenkins, Marketing &
Partnerships Director of KAM
22
23