Is Near-Beer Finally Here?

Brewers see market potential for alcohol-free beer.

August 07, 2017

NEW YORK – The Wall Street Journal writes that near-beer may finally be shedding its perception as a “pity-inspiring barbecue drink for drivers and pregnant women,” as more global brewers increase marketing of low and no-alcohol products. 

The Journal notes that last week, Heineken said its European low and no-alcohol brands grew double-digits during the first half of the year. Additionally, Anheuser-Busch InBev has stated that it wants a fifth of its beer sales to be in low or no-alcohol form by 2025, up from about 7%.

In May, Heineken launched a zero-percent version of its flagship Heineken brew called Heineken 0.0. Chief Executive Jean-François van Boxmeer hopes the brew will help beer penetrate social occasions such as drinking at lunchtime, and meet Western consumer demand for healthier drinks that won’t affect their energy levels at work or the gym.

The Journal notes that a push for more near-beer in the market is also large brewers amplifying their commitments to responsible. From a business perspective, near-beer sells at a similar price-point to regular beer but carries less tax.

In terms of creating demand for near-beer, Trevor Stirling at brokerage Bernstein told the news source that getting Western consumers to drink alcohol-free beer in situations where they might currently buy a soda or bottled water will require a major “mind-set change.”

And although the trend is still a fad, near-beer could “be good for the [beer] industry’s health,” writes the Journal.

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