The Wine and Spirit Trade Association (WSTA) has spearheaded the development of the UK’s first low and no alcohol guides, amid exponential growth in the burgeoning sector.
Three detailed documents have been put together by the WSTA – in collaboration with its members, including both producers and retailers – in a bid to clear up confusion over the marketing, labelling and production of low and no wines and spirits.
The first two, published yesterday (3 August) are titled ‘WSTA Marketing Guide for Alcohol Alternatives’ and the ‘WSTA Guidance on Labelling of Low and No Spirit Alternatives’.
A third guide in the series, ‘WSTA Guidance on Labelling of Low and No Wine Alternatives’ will be published in the coming weeks.
Described as the ‘first of its kind’, the marketing guide focuses on beverages that contain a maximum of 0.5% alcohol by volume and are marketed to adults.
Following much confusion in the trade over products below 0.5% the guide hopes to provide clarity on how to correctly promote and place these products in a socially responsible way.
The second guide on labelling low and no spirit alternatives is the second edition of WSTA guidance originally published in 2021. It is said to build on the previous advice and set out pragmatic solutions to conflicting legislative requirements.
The document also contains best practice pointers, some key dos and don’ts and suggested legal descriptors to aid in the naming of products. Some helpful examples of compliant labels are also included for reference.
Miles Beale, CEO of the WSTA said: “As the low and no sector continues to innovate and grow the WSTA is pleased to offer, for the first time in the UK, a comprehensive set of guides to help members navigate the often-confusing world of describing, labelling and marketing no and low alcohol drinks.
“These detailed documents offer clarity and comprehensive guidance to help producers avoid pitfalls. If you are making low and no wines and spirits these guides are a must-read.”
According to the IWSR, low and no beer/cider, wine, spirits and RTDs surpassed $11bn in 2022 (+7% in volume) across the top 10 key markets globally, which together, account for the lion’s share of sales.
The pace of growth of the category is expected to accelerate, too. According to the IWSR, volumes are forecasted to reach a CAGR of 7% between 2022 and 2026 worldwide, compared to +5% between 2018 and 2022.
The IWSR also noted the rise of a ‘maturing consumer base’ for low and no, thanks to growth among millennials.
Now the largest age group for the category, millennials are normalising the switching between alcohol and low and no, both during the same drinking occasion and different ones. Across age groups, 78% of consumers of low & no products also drink full-strength alcohol.
The IWSR counts the UK among the world’s most valuable low and no alcohol markets, alongside Germany (the most valuable), Japan, Spain and the US.
Meanwhile, in the coming weeks, it is expected that the Department of Health and Social Care (DHSC) will carry out further consultation to seek views on changing the low alcohol descriptor guidance that was published in 2018.
The consultation has two objectives: to increase the substitution of standard-strength alcohol products with low and no products by those drinking above low-risk levels and to facilitate a shift in the market from sales and promotion of alcoholic products towards low and no alternatives.
According to the WSTA, these aims cannot be achieved without amendments to the current descriptors, particularly the need to increase alcohol-free from 0.05% to 0.5%. This would provide consistency between the UK and European markets in these products, as well as provide clarity to today’s confused consumers.
Commenting, Miles Beale said: “Clarity and consistency of government descriptors is far more likely than punitive and muddled excise duty reforms to achieve the government’s stated aim of growing the no and low drinks sector.
“While it’s stating the obvious, it is absolutely vital that consumers understand what it is they are buying if they are going to support this small but growing segment of the market. If the government wants to see a continued change in consumer behaviour it needs to work closely with the producers and retailers, where the expertise lies.
“We are encouraging DHSC to press on with the consultation and make the changes producers, retailers and consumers want, so they can get on with supporting the growth of low and no products.”
The new WSTA guides are available to WSTA members on its website here.