Non-carbonated drinks trend

What happened: Asahi Group is launching its Calpis dairy drinks brand in India through a franchise agreement with PepsiCo bottler Varun Beverages, marking its entry into the non-alcohol/non-carbonated beverage market. Meanwhile, the trend of non-carbonated drinks, once dominated by seltzers, is shifting towards alternatives like Liquid Death and Surfside Iced Tea. In the UK, the alcohol-free beer boom is facing regulatory hurdles, with over-strict regulations preventing pubs and brewers from fully capitalizing on the growing demand.

Market impact: The non-carbonated drinks trend is driving growth in the dairy and non-alcoholic beverage sectors. Asahi's entry into the Indian market signals increased competition in the non-carbonated segment, potentially driving innovation and growth. However, UK's alcohol-free beer industry is facing headwinds due to regulatory constraints, which may limit its growth and impact breweries and pubs.

What to watch next: In Q2 2023, keep an eye on Asahi's sales performance in India to gauge the demand for Calpis and the potential growth of non-carbonated drinks in the region. Additionally, monitor the UK's regulatory landscape for alcohol-free beer, with a focus on the government's response to the trade body's warning, which could shape the industry's trajectory.