Retail Insight Network

Daily Newsletter

08 August 2023

Daily Newsletter

Waitrose and Diageo launch dedicated low and no-alcohol drinks areas

The initiative would add 60% more shop space across Waitrose’s estate.

Waitrose has partnered with alcoholic beverage company Diageo to launch a dedicated space for low and alcohol-free drinks.

The dedicated space will be available in 253 Waitrose shops across the UK.

The area will feature the retailer’s full range of more than 70 low and alcohol-free drinks, from beer and cider to wines and spirits.

Waitrose said the change would add 60% more space to low and alcohol-free drinks across its portfolio.

Waitrose beers, wines and spirits head and wine master Pierpaolo Petrassi said: “Demand for low-alcohol and alcohol-free drinks is growing at a phenomenal rate. It’s now the norm for customers to buy both. We expect this year to be the biggest year to date for sales and are preparing for strong demand at Christmas.

“The growth is down to our customers wanting to moderate their alcohol consumption, but is also heavily driven by the creation of new, great quality new drinks such as Guinness 0.0, Tanqueray 0.0 and Gordon's Pink 0.0. We’ve added ten new low and alcohol-free products this year and will launch more before Christmas.”

The partnership comes as Waitrose registered 20% sales growth in its low-alcohol and alcohol-free drinks over the past year.

According to Diageo-commissioned research, seven in ten UK adults want low-alcohol and alcohol-free drinks to be more accessible.

Diageo GB managing director Nuno Teles said: “We know that UK drinkers are becoming more sophisticated and thinking more about how much they drink. The alcohol-free and low-alcohol category plays a critical role in providing quality choices for those looking to moderate without compromising on experience.”

APAC duty-free market expected to grow fastest, fueled by rising income levels and international travelers

Per latest GlobalData estimates, the global duty-free market retailing market was valued at $49 billion in 2022, its highest level ever as it bounced back from the pandemic impact, and is expected to grow at a CAGR of more than 28% during the period 2020-2026, driven by government initiatives, rising passenger numbers, major global events (for instance global sporting tournaments) and the renewed popularity of cruise trips. Infrastructure investments will also play an important role, particularly airport expansion and space refurbishment, and investments in arrivals duty-free formats. That said, growth will be held in check in the years ahead by the permanent erosion of disposable income from the heightened cost of living impacting demand for air travel. The duty-free market in the APAC region showed strong growth in 2022, as traveler numbers surged in response to the lifting of travel restrictions. To cater for rising demand in the region, many airports in the APAC area are expanding and modernizing, giving duty-free stores greater space that will allow them to attract more customers. The future of APAC duty-free retail is also being shaped by the adoption of technology. The rise in online shopping, mobile payments, and digital marketing are giving businesses new ways to connect with customers and improve the shopping experience.