Nick Gillett: Aiming high with no & low

By Nick Gillett

Published: 18 November, 2024

The “no & low” category, as it’s become lovingly known, is one that many spirits boffins struggled to get their heads around at first. When you look at the statistics, the success of no & low is startling. For the last two years in the UK, growth in the category has massively outperformed the overall total beverage alcohol volumes and in 2023 sales of low alcohol products doubled (IWSR data). And there are other markets around the world where it’s even bigger, where moderation and sobriety are more common and embedded in the culture. But let’s be straight – it’s still a small category when compared to rum, vodka, or even tequila – but the overall trajectory is on the up and expected to continue well into the next five years and beyond.

As much as all of this sounds rosy and wonderful, I’m predicting a shakeup in the category next year. One that will likely see some brands fall out of the market entirely. And here’s my thinking.

The big question

Before we get into it – what are the reasons behind no & low’s success?

Behaviour change is the biggy. Gen Z and Millennials are health-conscious, which leads to some becoming sober curious (abstaining from alcohol entirely) or just practicing moderation. But in both cases, soft drinks just don’t cut it as an alternative. Consumers still want the sense of occasion, and this is especially true when they’re out socialising and in-venue.

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In the UK, the government is also compounding the issue by continually raising the duty on alcohol. Disposable income is tight and whilst a lot of no & low options still come at a premium, there’s still a saving to be made by those watching their dosh.

One thing is for sure – Gen Z are a generation who are just finding their purchasing power. And given that they’re the leaders of the sober curious movement, the category could grow exponentially in the next 30 years.

The big problem

There’s one big problem with the category right now. It really is a mixed bag of quality.

I reckon most people who have practiced moderation or dabbled in sobriety will have sampled a really rotten low-alcohol or alcohol-free drink. And that experience damages the category as a whole – very unfortunately, as there are some exceptional and delicious options out there.

The category has almost been split in two. You have the liquids that are simply a low- or no-alcohol alternative to a specific spirit (and even brand of spirit), where the aim is just to be as close in taste and experience to its alcoholic counterpart. And a good number of these liquids are falling short.

On the other side is where I see the real innovation happening. It’s not so much about mimicking, but rather about creating something delicious – whether it directly represents a spirit category or not.

Doing well

Brands like Lewis Hamilton’s Agave-based Almave, Portobello Road Distillery’s Temperance Spirit, and Caleño’s range are all great examples of flavour-led liquids that give a mouth-feel and experience that’s similar to spirits, without trying to replicate.

I think the latter is the future of the category. And in 2025 I’m expecting to see a real concentration on quality. The boom in growth has caused an abundance of new products to rush into the market, without necessarily putting the work into the liquids they’re selling. The category (and market) is maturing, and consumers have had a chance to find the top-notch tipples – so those that fall short in quality are likely to struggle.

Harnessing the opportunity

One thing’s for sure – we need to grab the opportunity that’s in front of us. And to reap the success, we need to educate. But this time it’s not just about educating the consumer. It’s about educating the on-trade.

When it comes to category and cocktail trends, the on-trade leads the way. They’re the trendsetters and ahead of the curve. And whilst the usual movers and shakers of the on-trade are already serving up exquisite non-alc options, this category is driven by consumer demand and there’s still a huge number of venues missing the opportunity entirely.

We know that the great British public want no & low options behind the bar. And not just a zero-alc beer or sparkling wine – they want choice and delicious things to drink. Rather than try to have a non-alcoholic gin, rum, vodka and tequila, venues can be smarter and leaner and find a few quality options (I’ve already mentioned a few) that can be a base for all the most popular cocktails. For mixologists, there are even no-alcohol liqueurs (the best in my mind are Giffard’s) that create the same depth and complexity as their alcoholic counterparts.

Producers also need to educate on how involved the process is to make an alcohol-free spirit. Price is still a sticking point, particularly for the off trade, as people just don’t want to pay the same amount for a product that’s alcohol free.

So, 2025 is a year of learning. I have always advocated for listening to the consumer, and this is a stellar example of where we absolutely have to do so. Let’s focus on giving consumers quality drinks that are alcohol free, that give them the same feeling of enjoying their favourite tipple, and stop being threatened by a movement that presents an opportunity for us all.

Nick Gillett is MD of premium spirit specialist Mangrove UK.

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