retail trends in health and wellbeing seminar...comparison – tobacco industry • shifting...

Retail Trends in Health and Wellbeing seminarCase studies of innovation in best selling products

Chair: David Hodgson MBA21-22nd November 2018

Background The focus on health and wellbeing is becoming an ever more prominent factor in consumer decision-making.

ObjectiveTo provide an overview of the trends in consumer demand and how it’s influencing category growth and product development and innovation.

Case Study - Meeting the Evolving Taste for Alcohol Free Drinks

David Hodgson, Founder & CEO Elementary-Life; & Partner, PlanB! Free Range Wines

A WORLD WHERE NOBODY HAS TO FEEL OUT OF PLACE IF THEY ARE NOT DRINKING

@joinclubsodajoinclubsoda.co.ukclubsodaguide.com

Now You Can have a beer at lunchtime

○ Over 777,000 people in the UK (24% of 9 to 5 working population) are more likely to take a lunch break if they had a strong menu choice of alcohol-free drinks

Now You Can have a beer and be productive

○ 972,000 people in the UK (30% of the 9 to 5 working population) would choose a non-alcoholic beer to get the most out of their day

Now You Can socialise with a beer and exercise

○ 27% of Brits socialise in a gym instead of a nightclub○ 1m people in the UK (32% of the 9 to 5 working population) of Brits would

exercise more if the gym offered a social experience afterwards ○ 57% of Brits think alcohol inhibits their fitness gains

@joinclubsodajoinclubsoda.co.ukclubsodaguide.com

Alcohol free spirits, or distilled botanicals (this type of drink is still finding its name!) are one of the fastest growing segment of the entire drinks industry.

Alcohol free spirits sold in the UK grew from £17.5 million to £25.9 million in the year to June 2018 (Source: CGA, quoted in the Morning Advertiser).

This is still only about 0.3% of the total spirits sales, but it will grow fast.

DIVERSITY OF CHOICE IS

GOOD FOR EVERYONE

[email protected]

@joinclubsoda

Alcohol free wine

• Low and alcohol free beverages are experiencing a growth spurt.• Imagine a world with less social disorder, less

absenteeism, less burden on healthcare services.• Growing focus on innovative and satisfying

alternatives to alcoholic drinks.

Copyright © 2018 Abella Ltd.

Alcohol awareness week 19-25 Nov• Every day in the UK twenty people die as a result of

alcohol. • Alcohol harm – mental health problems, liver

disease, one of seven forms of cancer, and economic difficulties. • Each of us who drinks too much is part of a family

and a community who feel the effects too.

alcoholchange.org.uk


Alcohol free wineUK wine consumer snapshot

• 50mil UK adult population.

• 40mil wine drinkers.

• 30mil regular wine drinkers.

- One in 3 have bought reduced/alcohol free wine before and would consider buying it again = 10mil “buyers”

- 1 in 5 haven’t bought reduced/alcohol free wine before but are open to buying = 6mil “potentials”

- 46% wouldn’t consider buying reduced/alcohol free wine = 13.6mil “non-buyers” Source: Wine Intelligence Lower Alcohol

Wines – A Multi-Market Perspective 2017


Alcohol free wine

• One segment really taking off is no/low alcohol products (AC Neilsen July 2018).

- Last year non-alcoholic wine value rose by 66% to £40mil.• The wine category is understandably slower to evolve due to

complexity with getting palatability and texture right.• Other innovations in the pipeline:

- Cannibis infused

- Synthetic alcohol


Comparison – tobacco industry

• Shifting resources cigarettes to “reduced risk products”. • Global tobacco market £560bil. NGP £12bil with forecast growth

to £30bil by 2021. Global alcohol £1000bil – £1500 by 2025• Philip Morris ‘Smoke Free Future’. “It’s pretty clear that smokers

have tried alternatives in the past that weren’t right for them then. A much wider range is now available. Us providing information is going to be a good way to persuade smokers to take another look” Mark MacGregor, UK head of corporate affairs.


Main motivations to buy alcohol free wine

Don’t drink alcohol Health and wellbeing benefits

Government guidelines – UKCMO

14 unit/week target to reduce risk

Fewer calories/weight

management

Medication Pregnancy

Generation shift – 1 in 5 adults

now not drinking alcohol (TDB

May 2018)

Like to stay in control, peak

performance, no hangovers

Corporate entertaining – return to

work

Driving, flying or operating

machinery

Religious reasons Prefer taste

Source: Wine Intelligence Lower Alcohol

Wines – A Multi-Market Perspective 2017 Copyright © 2018 Abella Ltd.

Main barriers to buying alcohol free wines

Range of distribution outlets Lack of product awareness

Favourite wine doesn’t come in

alcohol free version

Lack of choice

Poor quality/value perception

(£/ABV ratio)

“Not really wine”

Desire for alcohol effect Dislike taste

Legislation Branding and packaging

Source: Wine Intelligence Lower Alcohol

Wines – A Multi-Market Perspective 2017


“The time is right to start stocking up on no and low alcohol drinks to meet the challenging requirements of the health-conscious shopper”

A C Neilsen State of the Nation report 2018


• Vinolo – premium alcohol free wines.• Tailored base wine structure - focus on flavour and texture.• Dedicated de-alcoholisation facility with over 10 years experience.• Sophisticated spinning cone technology to preserve wine quality.• Maintaining beneficial health properties of original wines - polyphenols,

anthocyanins and antioxidants - with minimum level of preservatives.• Sustainable agriculture and environmental initiatives.

• Sparkling• Dry white blend• Rosé• Dry red blend



• Sparkling

• Dry white blend

• Rosé

• Dry red blend

Vinolo sparkling white trialVerdejo & Chardonnay blend

Sugar <5g/l (10-30g typical with UK

volume at 15g/l - TDB Aug 2018)

Acidity 7g/l

Energy 121 kcal/100ml

pH 3.5

Vinolo dry red blend trial. Cabernet

Sauvignon, Tempranillo, Merlot

Oak complexity

Sugar <1g/l (dry wines up to 10g/litre,

Yellow Tail Shiraz 12g/l)

Acidity 7g/l

Energy 36kcal/100ml

pH 3.5

Tasting

•Ceders Classic 0% gin & Fever Tree tonic•Big Drop 0.5% lager •Vinolo alcohol free

sparkling wine trial•Vinolo alcohol free

dry red blend trial


Q&A

Fell free to contact me:

[email protected]

M: 07730942015


mailto:[email protected]

retail trends in health and wellbeing seminar...comparison – tobacco industry • shifting...

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