05 Feb 2021
Posted in Consumer
Carlsberg’s 11% nolo increase fueled by millennials moderate alcohol intake and health consciousness
Following today’s release of Carlsberg’s 2020 financial statement, Ryan Whittaker, Consumer Analyst at GlobalData, a leading data and analytics company, offers his view:
“All of the top beer brands saw their volume and value on-trade sales drop due to the impact of the COVID-19 pandemic. Brewers have had to adapt to unprecedented market conditions and one area of success is Carlsberg’s low-ABV or alcohol-free ‘nolo’ brands, which are notable for 11% growth as consumers continue to moderate their alcohol intake. Increased health consciousness, which includes both physical and mental health concerns, is causing many to reduce their alcohol intake, and the pandemic has brought all of this to the fore.
“According to GlobalData, 28% of global consumers claim to be buying less beer*1 during the pandemic and approximately 27% of consumers say that they are extremely concerned about their physical health*2. What’s interesting is that these trends correlate with age, with millennials being both the most extremely concerned about their health and most likely to be buying less beer than before the pandemic. This group is also the largest generation in the global workforce, with disposable cash and a famous fondness for craft and, more recently, nolo beers. Nolo beers make for a good alternative to alcoholic beers, and many consumers opt for substitution rather than outright avoidance.
“Carlsberg’s latest results suggest that nolo beers are going to enjoy continued growth in 2021, well ahead of other categories. The company should capitalise on this growth as the ongoing pandemic and lockdown is precisely the kind of situation in which these drink-at-home nolo brands can flourish.”
*1 GlobalData’s COVID-19 Recovery Tracker – Global, Published 7 December – combined responses: “I have stopped buying this”, “I am buying significantly lower quantities than before”, and “I am buying slightly lower quantities than before”
*2 GlobalData’s COVID-19 Recovery Tracker – Global, Published 7 December