Retail Trends in Health and Wellbeing seminar Case studies of innovation in best selling products
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1 Retail Trends in Health and Wellbeing seminar Case studies of innovation in best selling products Chair: David Hodgson MBA nd November 2018
2 Background The focus on health and wellbeing is becoming an ever more prominent factor in consumer decision-making. Objective To provide an overview of the trends in consumer demand and how it s influencing category growth and product development and innovation.
3 Case Study - Meeting the Evolving Taste for Alcohol Free Drinks David Hodgson, Founder & CEO Elementary-Life; & Partner, PlanB! Free Range Wines
4 A WORLD WHERE NOBODY HAS TO FEEL OUT OF PLACE IF THEY ARE NOT DRINKING
5 @joinclubsoda joinclubsoda.co.uk clubsodaguide.com
6 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
7 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 joinclubsoda.co.uk clubsodaguide.com
8 Copyright 2018Abella Ltd.
9 DIVERSITY OF CHOICE IS GOOD FOR EVERYONE
10 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.
11 Alcohol awareness week 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
12 Alcohol free wine UK 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
13 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
14 Comparison tobacco industry Shifting resources cigarettes to reduced risk products. Global tobacco market 560bil. NGP 12bil with forecast growth to 30bil by 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.
15 Main motivations to buy alcohol free wine Don t drink alcohol Government guidelines UKCMO 14 unit/week target to reduce risk Medication Generation shift 1 in 5 adults now not drinking alcohol (TDB May 2018) Corporate entertaining return to work Religious reasons Health and wellbeing benefits Fewer calories/weight management Pregnancy Like to stay in control, peak performance, no hangovers Driving, flying or operating machinery Prefer taste Source: Wine Intelligence Lower Alcohol Wines A Multi-Market Perspective 2017
16 Main barriers to buying alcohol free wines Range of distribution outlets Favourite wine doesn t come in alcohol free version Poor quality/value perception ( /ABV ratio) Desire for alcohol effect Legislation Lack of product awareness Lack of choice Not really wine Dislike taste Branding and packaging Source: Wine Intelligence Lower Alcohol Wines A Multi-Market Perspective 2017
17 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
18 Sparkling Dry white blend Rosé Dry red blend 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.
19 Sparkling Dry white blend Rosé Dry red blend Vinolo sparkling white trial Verdejo & 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
20 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
21 Q&A Fell free to contact me: M:
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