Strength and sobriety

By now you've probably heard: sobriety and abstinence are becoming as fashionable as Mocha Mousse, particularly with the younger, fresh-faced cohort. Fifteen years ago, the suggestion of a Dry January would have been met with gargantuan guffaws; today, colleagues gather around the water cooler to boast about their alcohol-free days.

Moreover, the evidence is not just anecdotal: a recent survey commissioned by The Portman Group, undertaken in partnership with YouGov, found that over a third of UK drinkers (38%) now consume low- and no-alcohol alternatives “semi regularly”.

Meanwhile, the on-trade finds itself in the midst of a post-Christmas malaise, with depleted bank accounts and skyrocketing gym memberships. Yet, with sommeliers now diversifying their lists to incorporate no & low alternatives, combined with a slew of enticing promotions, the hospitality sector is leading a gallant fightback against this most dreaded of months. The question is: will it be enough?

Ring the changes

Owen Morgan, co-founder of Spanish restaurant group Bar 44, has spent several years perfecting his 'give January a kick in the teeth' strategy. Indeed, there is nothing like a crisis to bring out the best in sommeliers and restaurateurs – the company's 'roll the dice’ campaign is a work of inspired innovation.

“Our main driver in January is our fun roll the dice promotion, available in all sites (we have venues in South Wales and Bristol) all month. Anyone who asks to roll the dice when they get their bill, is given one of our specially made dice to roll at the table,” explains Morgan.

“Instead of numbered sides, they have different levels of discount off the whole bill, or prizes. 44% discount (the equivalent of rolling a 6, then 22%, 15%, 10%, a Bar 44 cook book, or a £5 voucher (the equivalent of rolling a 1). It's fun for the teams as well as the customers, and creates a great atmosphere. One rule, the dice must stay on the table. If it falls off... game over.”

This, he reveals, has really helped Bar 44 to bolster revenue during the January slump.

Back in London, South African restaurant and retailer Vivat Bacchus is struggling with a sharp decline in footfall.  “Bookings do drop considerably from December to January which makes it really hard to maintain the same team size and keep your team intact,” admits James Dawson, CEO at Vivat Bacchus. “Dry January is a problem, as is the fact of people's budgets getting exhausted over Christmas. Generally, people wanting to be lighter and healthier has a knock-on impact on revenue.”

Dawson adds that although January is challenging, “August and June are surprisingly worse due to summer holidays, etc.”  Nevertheless, the business manages to claw back some income, focusing on a big retail push – getting people to take wine home to drink at the weekend.

New opportunities

The CEO of Vivat Bacchus describes Dry January, now achingly trendy with Millennials, as “a problem'” Many in the trade would agree with him: falling consumption, accentuated by stubborn inflation, is becoming an established trend in many wine markets. Yet Diana Rollan, head of beverage for the D&D group, maintains a glass-half-full approach when adjusting to a new normal of sobriety and moderation.

“Dry January is an important time for many of our guests to focus on their health and well-being, and we fully support their decision to participate,” says Rollan. Fully capitalising on this burgeoning market, D&D is  “committed to offering a wide range of no- and low-alcohol alternatives, putting significant effort into curating options that complement our food and elevate the dining experience”.

She continues: “I can confidently say that the growing interest in no- and low-alcohol alternatives is visible in our day-to-day operations and interactions with guests. Over the past few years, we've seen a significant shift in consumer preferences, with an increasing number of people seeking out non-alcoholic options, not just during Dry January but throughout the year.”

Crucially, Rollan observes that this growth is not limited to “those who are abstaining from alcohol completely; it also includes those who are looking to moderate their alcohol consumption or simply enjoy a lighter alternative”. As a result, the group's restaurants and bars have expanded their no & low offer, “elevating the quality of these products”.

And the profit margins, now vital in light of declining wine sales, are not to be sniffed at.

Bar 44’s Morgan adds: “Last year, we really shifted up a gear regarding our no & low menu. We have seen growth throughout the year for the last 6-7 years. So, we aren't focusing on Dry January as such really, just the fact we now (probably) offer one of the most varied and sizeable no & low menus in the UK I would say, and of super quality.”

Planning for the future

Other professionals, however, prefer to keep wine at the centre of their pitch to consumers, while simultaneously providing an eclectic mix of mocktails and non-alcoholic drinks such as sparkling tea or Nozeco.

According to Stuart Bond, sommelier at The Cavendish Hotel at Baslow: “My job as sommelier is to provide alternative products for all our guests to enjoy. But some guests are not advocates of Dry January – or they may have tried [abstinence] with limited success. Therefore I propose 'Damp January' – moderating intake by offering lower alcohol, and lighter wines paired with healthier foods is also a good option.”

He adds: “During January we roll out our 'Early Bird' menu at set times during lunch and dinner service alongside our generic menu in our Garden Room Restaurant at the Cavendish Hotel. I personally see the post-Christmas period as a good opportunity to expand my knowledge of wines through personal learning.”

Nevertheless, leading stakeholders are expecting choppy waters ahead, notwithstanding the opportunities afforded by an expanding market for no & low beverages.

“It is make or break time for 80% of the industry, and since the Budget announcement in October, we have been in crisis meeting after crisis meeting, looking at how to remodel and structure our business, in preparation for the crippling changes coming in April, and of course the February duty hikes,” observes Morgan.

But the ever stoic restaurateur adds that “we have nonetheless become quite well known for our creative and fun January offers over the past 3-4 years, and this is our latest one”.

The UK hospitality sector continues to face a barrage of headaches: rising overheads, margin-sapping inflation, and an ongoing recruitment crisis in the post-Brexit environment. Fortunately, emerging opportunities in the no & low segment, allied to perfectly timed marketing campaigns, are helping operators to weather the storm.

Onwards and upwards.