Innovations in Healthier Alcoholic Drinks: Healthy positioning strategies, case studies and future opportunities

Health concerns are having an impact on the market for alcoholic drinks. The consumption of alcohol per head in Europe is falling having peaked in about 1975 and this trend is allied to increasing health awareness on the part of consumers. Consumption per head is falling in France, Germany, Italy, the Netherlands, Spain, the UK, as well as Japan and many other countries, and this trend is expected to continue over at least the next five years.
There is also a shift taking place in the types of alcohol consumed. The consumption of beer/cider/FABs is declining in most western countries whereas wine is generally perceived as a healthier alcoholic drink and so consumption in many countries is rising. In western countries consumption of spirits has not been as harmed by health concerns as spirits are often perceived by consumers to be healthier than beer because of their lower calorie content.

Health issues have already had a fundamental effect on food and non-alcoholic drinks markets and are now going to shape beer, wine and spirits. We have already seen the emergence of significant low/no alcohol and low/no calorie segments. Expect to see growth in organic/natural, low/no carbohydrate and functional segments, as well as more responsible drinking campaigns and a marketing focus on quality over quantity.

Key features of this report

• Analysis of almost 1,600 launches of healthier alcoholic that took place globally between 2005 and the start of 2010.
• Trends in the share of alcoholic drinks launches accounted for by organic, natural, dietary, low/no alcohol and functional products.
• Identification of the key recent trends shaping the market, as well as an evaluation of the next trends likely to become apparent over the coming five years.
• Descriptions and photos of the most important healthier alcoholic drinks launched over the last five years.

Scope of this report

• Understand how the myriad of products launched in this market actually fit together and relate to each other. Don’t miss any opportunities!
• Compare your portfolio and NPD pipeline against the healthier drinking benchmarks set out in the report.
• Prompt your marketing and NPD teams with product ideas from around the world.
• Set goals and objectives for your company’s new product development pipeline.

Key Market Issues

• In a climate of increasing government, media and to some extent consumer pressure, the largest drinks companies are rolling out international responsible drinking campaigns.
• The ageing population of developed countries – particularly the baby boomers of the US – present an attractive market for alcoholic drinks with functional health benefits such as higher levels of antioxidants.
• There is a question as to whether the current natural and organic craft products on the market can make the transition to super-brand status.

Key findings from this report

• New products with at least one healthier attribute made up 12% of new product launches in 2009.
• The largest proportion was registered in the beer market where 20% of launches were healthier in some way. This was almost double the proportion in the spirits market (11%), which in turn was higher than that in the wine market (8%).
• The most common health claim on new alcoholic drinks – present in 8% of launches in 2009 – was that the product lacks at least some artificial ingredients.
• The key trends in the low/no calorie segment are the emergence of super low calorie beers, the targeting of women and dieters, the adding to product ranges of more flavors and greater sophistication and the growth of sales outside the US.

Key questions answered

• What alternative to the standard responsible drinking campaign has Whyte & Mackay adopted?
• Why have organic spirits been slower in their growth than organic wines and beers?
• How have different consumption occasions prompted new product development in the realm of healthier alcoholic drinks?
• What will the increasing economic power of women and their greater health consciousness mean for the future of alcoholic drinks?

Innovations in Healthier Alcoholic Drinks

Executive summary

Market overview

Responsible drinking

Innovation overview

Drinks with low/no artificials

Drinks with dietary claims

Lower alcohol drinks

Functional alcoholic drinks

Future trends

Chapter 1 Market overview

Summary

Introduction

Consumption of alcohol

Beer, cider and FABs

Wine

Spirits

Regular drinkers

Frequency of drinking

Quantity of consumption per day

Summary of adult drinking

Drinking among young people

Non-drinkers

Conclusions

Chapter 2 Responsible drinking

Summary

Introduction

Overview of campaigns

Moderate consumption

Quality not quantity

Reducing binge drinking

Binge drinking campaigns

Reducing drink driving

Chapter 3 Innovation overview

Summary

Introduction

Innovation by product market

Innovation by health claim

Beer, cider and FABs innovation

Wine innovation

Spirits innovation

Chapter 4 Drinks with low/no artificials

Summary

Introduction

Innovation overview

Organic wine

Organic and natural beer

Case study 1: “just four ingredients”

Organic and pure spirits

Conclusions

Chapter 5 Drinks with dietary claims

Summary

Introduction

Innovation overview

Low/no calories

Case study 2: super low calorie beers

Low calorie wines and spirits

Low/no sugar

Low/no carbohydrates

Case study 3: new genre brews in Japan

Other low/no carbohydrates drinks in Japan

No gluten

Conclusions

Chapter 6 Lower alcohol drinks

Summary

Introduction

Innovation overview

Low/no alcohol beer

Case study 4: low/no alcohol beer in the UK

Case study 5: “Fourth beers” in Japan

Low/no alcohol wine and spirits

Mid-strength beer

Reduced strength beer

Case study 6: 4% beer

Reduced strength wine

Reduced serving sizes

Conclusions

Chapter 7 Functional alcoholic drinks

Summary

Introduction

Innovation overview

High vitamins

High minerals

High polyphenols

Case study 7: Mercian Bon Rouge

High GABA and other amino acids

Other functional ingredients

Borrowing ingredients from soft drinks

Alcoholic energy drinks

Niche functions

Conclusions

Chapter 8 Future trends

Summary

Taking inspiration from different occasions

Targeting health conscious women

Shifting focus from young adults

Appendix

Index

References

List of Figures

Figure 1.1: Consumption per head of pure alcohol by country, 2005-2013

Figure 1.2: Consumption per head of beer/cider/FABs by country, 2005-2013

Figure 1.3: Consumption per head of wine by country, 2005-2013

Figure 1.4: Wine in ‘medicinal’ packaging

Figure 1.5: Consumption per head of spirits by country, 2005-2013

Figure 1.6: Non-drinkers by country; % of adults not drinking in the last 12 months, 2006

Figure 2.7: Vladivar’s “quality not quantity” campaign

Figure 2.8: Mothers Against Drunk Driving products

Figure 3.9: Healthier alcoholic drinks launches by market, 2005-09

Figure 3.10: Healthier alcoholic drinks launches by claim, 2005-09

Figure 3.11: Beer/cider/FAB launches by health claim, 2005-09

Figure 3.12: Wine launches by health claim, 2005-09

Figure 3.13: Spirits launches by health claim (% product launches) 2005-09

Figure 4.14: Organic beers

Figure 4.15: Natural beers

Figure 4.16: Organic and natural spirits

Figure 5.17: Low calorie beers outside the US

Figure 5.18: Diet-branded beers

Figure 5.19: Super low calorie beers and lime beers

Figure 5.20: Low calorie pre-mixed spirits

Figure 5.21: Low sugar beer

Figure 5.22: Low sugar FABs

Figure 5.23: Low/no sugar wines and spirits

Figure 5.24: Michelob Ultra

Figure 5.25: No carbohydrate happoshu

Figure 5.26: Low carbohydrates new genre brews

Figure 5.27: Low carb sake, wine and liqueur

Figure 5.28: No gluten beer

Figure 6.29: No alcohol beers

Figure 6.30: Fourth beers in Japan

Figure 6.31: Low/no alcohol wines and spirits

Figure 6.32: Mid-strength beer and cider

Figure 6.33: Reduced strength wines

Figure 6.34: Alcoholic drinks in 25cl pack sizes

Figure 6.35: Wines in personal pack sizes

Figure 7.36: High vitamin beer and FABs

Figure 7.37: High mineral beers

Figure 7.38: Mercian’s range of Bon Rouge wines

Figure 7.39: High polyphenol wines from Mercian and Suntory

Figure 7.40: High polyphenol spirits & beer

Figure 7.41: High amino acid wines

Figure 7.42: High amino acid beer and sake

Figure 7.43: High protein, fiber and collagen products

Figure 7.44: Alcoholic drinks with perceived healthy ingredients

Figure 7.45: Alcoholic energy beer

Figure 7.46: Alcoholic energy drinks

Figure 7.47: Isotonic beer

Figure 8.48: Carlsberg Eve

List of Tables

Table 1.1: Consumption per head of pure alcohol by country, 2005-2013

Table 1.2: Consumption per head of beer, cider and FABs by country, 2005-2013

Table 1.3: Consumption per head of wine by country, 2005-2013

Table 1.4: Consumption per head of spirits by country, 2005-2013

Table 1.5: Regular drinkers: % of adults drinking in the last 30 days by country, 2003-06

Table 1.6: Frequency of drinking by regular drinkers (%), 2006

Table 1.7: Regular drinkers by quantity drunk per day (%), 2003-06

Table 1.8: Regular drinkers by frequency of drinking (%), 2006

Table 1.9: Summary of regular drinkers by country, 2006

Table 3.10: Percentage of healthier alcoholic drinks launches by market (%), 2005-09

Table 3.11: Healthier alcoholic drinks launches by claim, 2005-09

Table 3.12: Beer/cider/FAB launches by health claim (% product launches), 2005-09

Table 3.13: Wine launches by health claim (% product launches), 2005-09

Table 3.14: Spirits launches by health claim (% product launches), 2005-09

Table 4.15: Alcoholic drinks launches with low/no artificial ingredients; % product launches, 2005-09

Table 5.16: Alcoholic drinks launches with dietary claims; % product launches, 2005-09

Table 6.17: Alcoholic drinks launches with low/no alcohol claims; % product launches, 2005-09

Table 7.18: Alcoholic drinks launches with functional claims; % product launches, 2005-09

Table 7.19: Evolution of Mercian’s Bon Rouge range of healthier wine

Table 7.20: Alcoholic drinks launches by health claim; % product launches, 2005-09

Table 7.21: Beer/cider/FAB launches by health claim; % product launches, 2005-09

Table 7.22: Wine launches by health claim; % product launches, 2005-09

Table 7.23: Spirits launches by health claim; % product launches, 2005-09