Food & beverage


Market research by Mintel shows that 60% of British adults either did not drink alcohol or had reduced their intake over the past 12 months. This trend is also becoming evident in other parts of the world, with an increase in alcohol-free bar visits and a growing demand for non-alcoholic alternatives at home. Even Fitzgerald himself might have appreciated this shift in drinking culture; as he once wrote in his famous novel, “It is a great advantage not to drink.”


Growing demand for non-alcoholic options in hotels


As the trend towards lower alcohol consumption grows, there is a clear opportunity for hotels to cater to these evolving preferences. With the freeze on alcohol duty lifted in the UK last year, the financial aspect has added another layer to this trend. Rising costs and economic pressures, such as high inflation and real-term wage cuts, are causing many individuals to reconsider their choices when it comes to drinking, both at home and when they are travelling. Additionally, young people are increasingly conscious of the mental and physical impact of alcohol, making non-alcoholic beverages a more attractive option. Recognising these concerns, some entrepreneurs are already capitalising on this trend. Rohan Radhakrishnan, co-founder of Quarter, a business dedicated to providing lower-proof alternatives to high-ABV spirits, along with his partner Fabian Clark, responded directly to these shifts. “We saw that people still want a few mid-week drinks with friends and, like myself, might have been conscious of wanting to avoid overconsumption and the follow-on anxiety and physical impact,” Radhakrishnan explains. Quarter’s products reflect a desire to enjoy social drinking without the negative side effects, a demand that is also becoming evident in the hotel sector.


For hotels, offering a variety of non-alcoholic drinks represents an opportunity to appeal to a broader and more diverse audience. The growth of the ‘no and low’ alcohol market reflects this shift. According to IWSR, this market saw almost double- figure sales growth in 2022, while supermarket Tesco reported that demand for alternative drinks surged by 40% over two years. As a senior beverages buyer from Tesco mentioned on the company’s website, drinkers are increasingly “prepared to buy no and low-alcohol beers as long as the quality is good”.


Overcoming the challenges of flavour and perception However, hotels that wish to embrace this trend must also navigate the challenges that come with it. The biggest obstacle remains the perception of taste. Analysis by The Grocer found that low or no-alcohol


Hotel Management International / www.hmi-online.com


drinks are often ignored by consumers due to a belief that they lack flavour or authenticity.


For instance, a 2019 survey conducted by Statista among South Korean beer drinkers revealed that the belief that alcohol-free alternatives would not have the right flavour profile was the most significant barrier to choosing them over traditional options. Research conducted in Italy found similar results, highlighting that consumers often perceive non- alcoholic drinks as subpar imitations. Radhakrishnan acknowledges these challenges, stating, “Some non-alcoholic products can be underwhelming, while others try to replicate the mouthfeel, experience and flavours through the integration of sugar. Oils in the [alcohol-free] distilling process can come off, so the booze can be cloudier too.” For hotels, this underscores the importance of carefully selecting high-quality non-alcoholic options to ensure they meet guest expectations in both taste and appearance.


Innovation in non-alcoholic beverages: what hotels should know To overcome these challenges, producers are focusing on innovation. Many brands are experimenting with new techniques to create satisfying non-alcoholic drinks that meet consumer expectations. AF Drinks, part of Pernod Ricard’s innovation portfolio, offers alcohol-free versions of classic cocktails like G&Ts, Rosé and Cuba Libre. The secret lies in their trademarked botanical, which replicates the warmth typically provided by alcohol – though the exact ingredient remains a mystery.


Other companies are more transparent about their methods. Japanese brewing giant Asahi, for instance, promises that its alcohol-free version of the best- selling Asahi Super Dry beer retains the ‘super- premium’ taste of its alcoholic counterpart. They achieve this through a process called de-alcoholisation,


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Drinks like Quarter seek to fill the need for lower-proof alternatives.


@CHARLIEMCKAY


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