Business Day

More Britons go cold turkey

UK retailers are cashing in as vegan options and low- or no-alcohol drinks make a splash this festive season

- Andrea Felsted Felsted is a Bloomberg Opinion columnist covering the consumer and retail industries. She previously worked at the Financial Times. ●

This Christmas, instead of a free-range turkey, how about a beef-less Wellington washed down with a few glasses of “Nosecco”?

This Christmas, instead of a freerange turkey, how about a beef-less Wellington washed down with a few glasses of “Nosecco”? And rather than falling asleep watching the queen of England, why not tune in to your inner self with a spot of meditation?

This might not sound like traditiona­l festive fun, but now that the craze for all things vegan has crossed the Atlantic, it is what British retailers are betting on to lift sluggish supermarke­t sales and see off brutal conditions on the high street, at least for a spell.

A rough estimate suggests that across the big UK supermarke­t chains, meat-free offerings of traditiona­l Christmas fare are up by between 40% and 400% in 2019. This underlines how veganism has moved from niche to mainstream over the course of 2019 as more consumers cut out animal products altogether, or reduce their meat intake with a “flexitaria­n” diet.

Just look at the popularity of the vegan sausage roll introduced by baker Greggs.

There is likely to be at least one vegan at any big Christmas gathering, and so being able to cater for them with plant-based canapés is crucial.

And while many families will not ditch the turkey altogether, they may well replace another meat protein, such as beef or gammon, with a fancy nut roast, savoury yule log or vegetable wreath.

Sales of plant-based substitute­s still represent a small share of the overall grocery market, but they can have a significan­t influence over shopping habits.

Being able to buy a good selection of food for a vegan daughter, for example, is likely to determine where shoppers fill up their grocery carts for the whole family.

No wonder the category has become a key battlegrou­nd.

There is another reason why it is worth supermarke­ts’ while to go vegan. Plant-based versions of festive favourites such as pigs in blankets tend to be more complex to make and require innovative ingredient­s.

Sainsbury’s is offering party food made from the blossom of the banana tree, which can be used as a substitute for fish. This builds on the popularity of the jackfruit, a tropical fruit that is a good alternativ­e to pulled pork.

All this added value means stores can charge a premium. That will not last forever though.

The UK arms of the German discounter­s Aldi and Lidl are piling into this market too. Lidl has two Christmas-specific vegan lines, while Aldi has nine. Neither had a plant-based offering in 2018.

Morrisons recently cut the price of its foods that are free from certain ingredient­s, such as gluten, while Tesco has launched an affordable plantbased range.

In another sign of the times, supermarke­ts this Christmas season are bulking up on party drinks that are low in alcohol, or contain none at all.

Not only do they tend to be premium products, particular­ly non-alcoholic spirits, but retailers don’t pay duty. So, while they can charge the same or more for a fancy but sober drink, they get to keep a bigger slice of the selling price.

It helps that the market is growing rapidly, as many consumers, particular­ly younger people captivated more by their social media feeds than their real social life, reduce their alcohol intake.

Beer led the way, spawning Budweiser’s Prohibitio­n Brew and Brewdog’s Nanny State, with wines and particular­ly spirits exploding in 2019.

Demand from supermarke­t shoppers follows the trend in clubs and pubs where “mocktails” are now a staple of the cocktail menu.

Going on the wagon is usually associated with January, but the run-up to Christmas can also be a time for restraint as people become more conscious of pacing themselves through rounds of festive events, not to mention all of those designated drivers.

Asda, the UK arm of Walmart, estimates that December sales of low- and noalcohol drinks are double those of the average month.

It is all part of the new mood around Christmas, characteri­sed by rising environmen­tal awareness and a focus on health and wellness.

Throw in the ongoing uncertaint­y around Brexit and the general election, and there are fewer celebrity blockbuste­r Christmas advertisem­ents this year, with most retailers returning to traditiona­l themes such as family and nostalgia.

Even tree trimmings are falling in with the trend. The Sanctuary range from John Lewis features pastel-hued baubles including Buddha heads and an ornament depicting a woman reclining in a luxurious bubble bath.

Its focus is on serenity something that’s often in short supply over the busy festive season.

After the decoration­s come down, consumers may continue to embrace plant-based diets with Veganuary, which has rocketed in popularity over the past five years. Dry January will bolster sales of no- and lowalcohol ranges.

But beyond that, it could well be retailers themselves that are in need of some self-care. The months following the holidays are often lean ones, as consumers rein in spending after the excess of Christmas.

It can also be tricky for supermarke­ts to accurately gauge demand and control waste when consumers switch in and out of different food and drink trends so dramatical­ly.

This Christmas could be particular­ly hard if the election is followed by the return of fretting over Brexit. So these swings will be an extra burden to manage.

The New Year hangover may still be with us, even if it is an alcohol-free one.

AND WHILE MANY FAMILIES WON’T DITCH THE TURKEY ALTOGETHER, THEY MAY WELL REPLACE ANOTHER MEAT PROTEIN

 ??  ?? Staking a
claim: British retailers are banking on veganism to lift sluggish sales on the high street over the festive season. It is estimated that meatfree offerings of traditiona­l Christmas fare at the big supermarke­t chains are up by between 40% and 400% in 2019. /Philippe Wojazer
Staking a claim: British retailers are banking on veganism to lift sluggish sales on the high street over the festive season. It is estimated that meatfree offerings of traditiona­l Christmas fare at the big supermarke­t chains are up by between 40% and 400% in 2019. /Philippe Wojazer

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