RAISING THE BAR

December 2024 -The hospitality sector is behind the curve when it comes to delivering on the growing demand for alcohol-free options, according to new research carried out by KAM in partnership with Everleaf.

While alcohol-free options are now widely available - with 98% of outlets represented in the survey having at least one alcohol-free drink available - their visibility on both menus and at the bar often falls short.

The study also found that moderators are the ‘new vegetarians,’ defining where their wider group will spend their money.  Data from YouGov shows that while 16% of Brits identify as non-drinkers, only 6-7% of the population follow a vegetarian diet. Yet, the hospitality industry’s menus tell a very different story. Every venue audited offered vegetarian options on their menu, with 37% of dishes on average being meat-free. In contrast, only 70% of venues listed alcohol-free options on their drinks menu, and only 18% of cocktails were alcohol-free.

The in-depth audit took place across 131 outlets in London and Manchester, representing 3,832 UK pubs, bars and restaurants in November 2024, capturing metrics related to the availability, accessibility, and visibility of alcohol-free options.

Non-alcoholic beer was the most widely distributed (96% have bottles and 18% have draught), whilst other categories, such as alcohol-free spirits, were available in less than half of the venues audited.

Even when alcohol-free options are available, they are not ‘clearly visible’ in 2-in-3 venues, forcing customers to search for them actively and one-third of these venues do not include non-alcoholic cocktails in their menu.

Paul Mathew, Everleaf Founder, said: “Drinking habits have changed dramatically, even in the 6 years since I sold the first bottle of Everleaf. People want to feel included and have access to high-quality, uncompromisingly tasty non-alcoholic options in bars and restaurants. It’s not enough just to stock them – they need to be clearly listed and showcased with as much pride as anything else on the list. Venues that embrace this will improve the customer experience and unlock a valuable and loyal customer base that’s only going to grow in the coming years.”

The report suggests that with non-alcoholic drinks now accounting for a significant share of consumer demand, venues that fail to prioritise this category risk losing not only individual customers but also groups where even one person prefers a non-alcoholic option. Previous research from KAM has shown that customers will often leave a bar early – or avoid visiting altogether – if suitable non-alcoholic options are difficult to find, and they’ll take their friends with them.

Katy Moses, MD KAM, says: “Visibility and accessibility of alcohol-free options are still generally fairly shocking as they are too frequently hidden or omitted entirely from the menu. With 1-in-3 visits to pubs, bars, and restaurants now not involving alcohol, and younger generations embracing moderation more than ever, this should serve as a wake-up call for the hospitality industry.”

The report also offers top tips for operators wanting to provide an inclusive range of alcohol-free choices: You can access the full research here.