Gift of Insight UK (Part 4): Alcohol at Christmas – Balancing Indulgence and Moderation

Alcohol’s reliance on the Golden Quarter

• The Golden Quarter matters most for BWS: 28.9% of annual BWS value lands in Q4, with some subcategories even more reliant. For example:
  • Port: 51.4%
  • Champagne: 42.6%
  • Stout: 30.0%
  • Spirits: 32.5%
• Promotions drive the category: 42.4% of BWS value in Q4 2024 was sold on promotion, and alcohol shows the highest promo elasticity. With consumers even more cost-conscious this year, promotions will be a critical lever to achieve positive performance this year.

Gifting is important for alcohol sales at Christmas

Alcohol is still a top choice for festive gifting:

• Leading gift categories: Wine, Sparkling Wine/Prosecco, Gin.

• 57% of shoppers bought alcohol as a Christmas gift in 2024. Premiumisation will be in full force here as shoppers want to delight their family and friends.

Moderation is shaping consumption

Health and wellness priorities will influence festive drinking:

• 54% of consumers say they are moderating alcohol intake.
• Expect more no/low alcohol options and premium soft drinks at the dinner table and in pubs as consumers alternate or replace traditional drinks.
• Moderation doesn’t mean complete removal of alcohol – it’s about balancing indulgence with mindful choices especially as households may take celebrations into the weekend.

Our Perspective

“Across the on and off trade, we see consumers moderating. Christmas is a key drinking occasion in the year with consumers drinking out and in the home. No/low options offer an easy alternative while keeping the taste, but consumers may choose to replace or alternate alcohol with soft drinks, particularly premium options, at the dinner table and in the pub to limit consumption.” – Marika Pratico, NIQ Business Unit Director, Beverages

What it means for retailers and brands

1. Double down on promotions
   Alcohol’s promo elasticity means well‑timed deals can unlock incremental volume and boost performance this Christmas with shoppers even more influenced by deals now than in previous years.
2. Curate gifting solutions
   Highlight ready‑to‑wrap formats and premium cues in wine, gin, and sparkling wine to capture gifting missions.
3. Expand no/low and premium soft drink ranges
   Position these as festive alternatives, not compromises – shoppers want the premium taste and experience but without the alcohol. This trend will not disappear so have this in mind this Christmas and going forward.
4. Leverage online discovery
   With more shoppers browsing digitally, ensure gifting and moderation options are visible and shoppable online especially with Black Friday sale events where alcohol often over-trades.