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The everyday, explainedBy Huw Allen

Alcohol-free. The pint with no duty.

Young people are drinking less, and brewers have never been more excited. Alcohol-free beer sells for nearly the price of a pint and skips the tax.

THE GIST ON ALCOHOL-FREE: "The Non-Alcoholic Beer Boom"

Thumbnail for The Gist on Alcohol-free, titled "The Non-Alcoholic Beer Boom".

Watch "The Non-Alcoholic Beer Boom": The Gist on Alcohol-free.

How big is alcohol-free beer?

Non-alcoholic beer has exploded into the mainstream. It's growing seven to nine percent a year, it's valued at about 20 billion today, and it's expected to reach 35 billion by the end of the decade.

Why do brewers love it?

Here's the bit most people never hear. Zero duty, zero upfront tax, but it sells for nearly the same price as a regular pint. The margins are cleaner and the cash flow is smoother.

Heineken is rolling out 10,000 alcohol-free beer taps across Europe, seeing it as a massive growth engine. Carlsberg is doing the same, because low to no alcohol is one of its fastest growing segments.

What is the lesson?

The big companies didn't resist the cultural shift. They monetised it, evolving the product and not the customer. Brewers now rely less on alcohol content and more on brand, flavour and lifestyle.

For the first time, health trends and business incentives are pointing in the same direction. Winning companies don't fight behaviour change. They design around it.

Would you swap your usual pint for alcohol-free?

Your take. One tap, then see how everyone else voted.

Quick answers

How fast is non-alcoholic beer growing?

Seven to nine percent a year, valued at about 20 billion now and expected to reach 35 billion by the end of the decade.

Why do brewers like it?

It carries zero duty and zero upfront tax but sells for nearly the same price as a pint, so margins are cleaner and cash flow is smoother.

What is Heineken doing?

Rolling out 10,000 alcohol-free beer taps across Europe.

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