As the hospitality industry faces rising costs and evolving consumer preferences, the recent duty increase on 1^st February 2025, is adding further pressure on margins. With operational expenses climbing, the focus on profitability is more critical than ever, requiring thoughtful strategies to balance cost management with delivering value to customers.

One of the most significant trends reshaping the market is the continued growth of the low and no alcohol (No/Low) category. Following the duty increase in August 2023 and the most recent rise, this segment is gaining even greater prominence. While dealcoholised wines and spirits or artificially low-alcohol products may be tempting options, naturally low-alcohol wines are increasingly popular. Regions such as the UK, Germany, and Portugal’s Vinho Verde offer high-quality options that combine authenticity with a lower alcohol profile. For example, Aveleda, the world’s leading Vinho Verde producer, provides a diverse range of wines—from the approachable Fonte to the premium single-vineyard Solos wines—ideal for forward-thinking wine lists.

The numbers highlight the growing opportunity in this space. According to Kantar’s most recent data for the 12 weeks ending December 29, 2024, the percentage of people purchasing low or no alcohol drinks over the holidays rose from under 10% to 11%, even in a season traditionally associated with higher-alcohol consumption. Additionally, the WSTA December 2024 Market Report reveals that:

• No and low alcohol wines in the off-trade generated £69 million in sales, accounting for 1.6% of still wine volumes.
• In the on-trade, this category saw volumes grow by 26% and value rise by 38%, demonstrating strong momentum.
• Across the on- and off-trade, the No/Low category grew 17% over the 12 months to September 2024, although it remains a smaller category at 0.8% of on-trade and 2% of off-trade liquor volumes.

While inflation has eased from its peak two years ago, its lingering effects continue to impact consumer spending, leading to declining volumes across most alcohol categories in 2024. The exceptions have been in sparkling wine, RTDs, and tequila in the off-trade, and cream liqueurs and No/Low alcohol in both the on- and off-trade.

The duty increase presents challenges, but it also creates opportunities for businesses to rethink their wine lists and adapt to changing market dynamics. By focusing on high-quality, innovative options that align with consumer trends, such as naturally lower-alcohol wines or alternatives to traditional products, businesses can mitigate the impact of rising costs while offering customers compelling choices. Those taking advantage of this already include Martín Códax, where wines over 12% will now not be produced as standard.

We are working proactively with our partner suppliers to mitigate duty related price increases, explore lower ABV wines and look for other opportunities that we can put in place to further support you, our customer, and create value. Below you’ll find practical examples to help you navigate these changes, which already exist in our portfolio, to craft a wine list that meets both customer preferences and business needs.

1. Sparkling wines

Sparkling wines often have a naturally lower ABV compared to still wines, typically ranging between 11% and 12.5%, depending on the region and style. This is primarily due to the production process, which involves harvesting grapes earlier to preserve acidity—key to creating the fresh, vibrant profiles associated with sparkling wines. The earlier harvest results in lower sugar levels, which translates into higher acidity and lower sugars, and therefore a naturally occurring low ABV. With the duty increase affecting higher ABV wines, sparkling wines present an attractive option for wine lists. They help mitigate cost increases, whilst offering a versatile choice that resonates with customers across various occasions.

E20261NV | Classic Reserve NV, Hattingley Valley

Hampshire, England

J4706121 | La Cuvée Aliances 2021, Gramona

Corpinnat, Spain

J4466123 | Argeo Prosecco Rosé Brut 2023, Ruggeri

Veneto, Italy

L14661NV | Xinomavro Sparkling Brut NV, Kir-Yianni

Florina, Greece

2. Higher Altitude wines

Another naturally occurring suggestion is wines produced at higher altitudes. They often feature a naturally lower ABV, due to the cooler temperatures and longer growing seasons found in these regions. The cooler climate slows the ripening process, allowing grapes to retain higher acidity and develop complex flavours without accumulating excessive sugar, which would otherwise convert to alcohol during fermentation. As a result, high-altitude wines strike a balance between freshness and depth while typically staying at a lower alcohol level, making them a strategic choice for wine lists. This trend is increasing in popularity in the classically warm climates of the south Mediterranean, where people are exploiting old vines at altitude to craft fresh and vibrant wines that are a truly modern representation of what countries such as Spain and Italy have to offer.

K5966121 | Altitude 430 2021, Quinta do Crasto

Douro, Portugal

K6246122 | Pomino Pinot Nero 2022, Frescobaldi

Tuscany, Italy

L3076124 | Varietal Sauvignon Blanc 2024, Tarapaca

Central Valley, Chile

3. Cooler Coastal wines

As wine consumers shift towards lower alcohol styles, cooler coastal wines are gaining prominence, to combat the duty charges. Portugal’s Vinho Verde is leading this movement, offering naturally light wines (10-12% ABV) that align with both health-conscious preferences and new commercial realities.

Like high-altitude wines, those from cooler coastal regions benefit from slower grape ripening, preserving acidity while maintaining lower alcohol levels. Vinho Verde, located in northwest Portugal near the Atlantic, exemplifies this trend. Its crisp, refreshing wines—available in blended, monovarietal, and rosé styles—fulfil the growing demand for moderate drinking experiences.

Winemakers in these regions are adapting through careful canopy management, precise picking dates, and minimal intervention winemaking, avoiding heavy oak and commercial additives. This approach enhances freshness and purity, making wines more suited to modern palates.

Beyond Portugal, other coastal regions—including Spain’s Rías Baixas, Italy’s Liguria, and Australia’s cool-climate vineyards—are also embracing lower-alcohol styles. These wines not only cater to changing consumer tastes but also provide a strategic advantage under new duty structures.

As demand for lighter wines grows, cooler coastal wines offer an exciting, natural solution. Their bright acidity, lower ABV, and refreshing profile make them a compelling choice for today’s wine market—balancing quality, health-conscious appeal, and commercial viability.

L9126123 | Fonte Vinho Verde 2023, Aveleda

Vinho Verde, Portugal

K5406123 | Albariño 2023, Martín Códax

Rías Baixas, Spain

A7166123 | The Stump Jump Riesling 2023, d’Arenberg

McLaren Vale, Australia

68546120 | Lot 21 Pinot Noir 2020, Leyda

Leyda Valley, Chile

4. Chilled Red wines

Chilled red wines are becoming a standout category for their refreshing qualities, versatility, and often lower ABV. These wines are typically crafted from grape varieties that are naturally lower in tannins and alcohol, or they are made in a light-bodied, fruit-forward style.There are increasingly more examples of these approachable reds, look out for options made from Pinot Noir, Frappato and Sangiovese

A3636123 | Frappato Vittoria 2023, Planeta (Coming Soon)

Sicily, Italy

66046123 | La Cadence Rouge 2023, La Cadence - South of France, France

South of France, France

K0526121 | Terroir Pinot Noir 2021, Casa Valduga  (Coming Soon)

Vale dos Vinhedos, Brazil

K6356123 | Rèmole Rosso Toscana 2023, Frescobaldi

Tuscany, Italy

5. Low/No Alcohol wines

The lack of a credible no-alcohol wine offering is causing some consumers to migrate into other no/low categories, such as beer and RTDs. However, we believe that we have multiple high-quality options in our portfolio, including Leitz and Aubert et Mathieu. Aubert et Mathieu’s alcohol-free sparkling rosé wine, Kisumé, preserves the aromas and complexity of their traditional vintages. The dealcoholisation process is carefully controlled to offer a light product, full of flavour. 

Leitz employs a state-of-the-art vacuum distillation process to gently remove alcohol, while preserving the wine’s essential aromas, flavours, and structure. Unlike traditional methods that can strip wines of their depth, this technique operates at low temperatures, minimising the loss of delicate aromatic compounds. This ensures that the resulting no-alcohol wine maintains its varietal identity, balance, and mouthfeel.

By carefully controlling the dealcoholisation process, Leitz and Aubert Mathieu are perfect examples of creating wines that feel authentic, rather than compromised in their low ABV. 

M23961NV | Kisumé Sparkling Blanc NV, Aubert & Mathieu (Coming Soon)

Languedoc-Roussillon, France

M23861NV | Kisumé Sparkling Rosé NV, Aubert & Mathieu (Coming Soon)

Languedoc-Roussillon, France

H79961NV | Eins Zwei Zero Riesling 0.0% NV, JJ Leitz

Rheingau, Germany

K16961NV | Zero Point Five Pinot Noir 0.5% NV, JJ Leitz

Rheingau, Germany

For help in ordering any of the above suggestions please speak to your Account Manager or our Customer Services Team.