Company Trend Analysis - Consumers Embracing Non-Alcoholic Beer - OCT 2017

BMI View: BMI projects that the trend of health-consciousness will lead to a growth in demand for offshoot beer categories, like non-alcoholic beer. Heineken is just one of the major brewers, which has started to capitalise on the growing consumer demand for non-alcoholic beverage options in developed markets, with the company ' s non-alcoholic beer, Heineken 0.0, performing especially well in Europe.

Heineken , the second largest beer company in the world, after AB InBev , plans to increase its market share by investing in non-alcoholic beer products. The company has identified the low and no alcohol category as a segment for innovation, believing that the market has high growth potential. We believe that a moderation in alcohol consumption in developed states is the key driver in Heineken's diversification strategy, with BMI forecasting alcohol consumption in developed markets to rise by only 0.5% a year in 2017-2021.

Heineken 0.0 was launched in Q217 across 16 markets in Europe. The alcohol free beer contains just 69 calories, while positioning itself as "Open to All", appealing to athletes, pregnant women and designated drivers. The brand's distinctive green label has been replaced with a blue one, to differentiate the non-alcoholic beer. In Europe, Heineken has recorded double digit growth for its low and no alcohol beer, with Heineken 0.0 reporting strong sales in Spain, Netherlands, Austria and Poland.

Falling Beer Consumption in Netherlands
Netherlands- Beer,litres(mn)
e/f=BMI estimate/forecast. Source: BMI Research/WHO

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