A missing trick: Non-alcoholic beer

Why non-alcoholic beer could be a golden market in the UK’s capital.

In the 1980s non-alcoholic beer hit European shelves but failed to impress. Rave culture had begun to take hold of the UK and even high-profile advertisements by the likes of Billy Connolly could not compensate for the dour taste and lack of kick. Young and old alike just couldn’t see the point.

However, the atmosphere in London is changing. Could this once failing product turn into a success?

The facts are already pointing that way. A report by independent retail analyst Kantar Worldpanel revealed that sales have grown by 40 per cent across all retailers in the past year. Consumers have downed 15 million bottles from Tesco alone where sales have soared by 47 per cent. The stunning rise has been attributed to an increasing product range and improving taste as well as a changing target market: a health–conscious population, constantly subjected to graphic NHS campaigns, are more inclined to give up alcohol to gain a few years. This is all against the backdrop of a world where the consumption of alcohol is diminishing - UK beer sales fell by 4.8 per cent in the second quarter of 2013 alone – which makes the feat only more impressive.

However, the viewpoint of this article is that marketing gurus are missing a key group of London’s population: Muslims. The 2011 census Office for National Statistics showed that the proportion of Muslims in London had risen to 12.4 per cent of the population, with young British Asians increasingly flocking to the capital. Islam condemns the act of drinking alcohol as haram (forbidden) but, according to The Economist, several significant Saudi and Egyptian Ayatollahs have issued fatwas allowing Muslims to shake of their shackles and fill their glasses with the non-alcoholic stuff. The product has now swept across the Arab world.

The Middle East has already seen sales of non-alcoholic beer booming. Figures released by Euromonitor reveal last year 2.2 billion litres were downed with almost a third landing in the sin-free stomachs of middle-eastern Muslims. Even in Iran, where the state laments Western decadence, Iranians are drinking five times as much as they did four years ago.

What’s the draw? In the Gulf States, young Islamic socialites yearn for a taste of the west’s glamorous lifestyle without compensating their faith. Meanwhile it allows conservatives to drink in Saudia Arabia and UAE – countries infamous for their strict Islamic laws banning alcohol – without irking the authorities.  

So, big business can definitely be made by targeting London’s Islamic minority. The trick is tapping into it. Taybeh - a Palestinian brewer - have successfully done that by emphasising the Islamic side of their product: their label is coloured green, the colour of Islam, and on every bottle the word Halal (permissible) is inscribed in Arabic. A similar product is yet to launch here. In the UK, the British Heart Foundation has found that the number of shisha bars, which British Asian Muslims relish, has rocketed by 210 per cent in the past five years. A launch of a perfectly halal partnership between shisha and non-alcoholic beer could prove fruitful.   

Aside from the money, introducing non-alcoholic beer would have a significant cultural impact. Alcohol is embedded in society’s social gatherings from apéritif cocktails to Friday night pub trips. Faced with this conundrum, Muslims retreat into packs: Prevention is better than cure. Non-alcoholic beer could help bridge the gap between Muslims and their counterparts in a society which is increasingly worried about their social marginalisation. With the hate towards ‘radical Islam’ only rising following the brutal killing of Fusilier Lee Rigby, it’s a desperately needed step to Islamic integration.

Non-alcoholic beer is causing a stir. Photograph: Getty Images
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BHS is Theresa May’s big chance to reform capitalism – she’d better take it

Almost everyone is disgusted by the tale of BHS. 

Back in 2013, Theresa May gave a speech that might yet prove significant. In it, she declared: “Believing in free markets doesn’t mean we believe that anything goes.”

Capitalism wasn’t perfect, she continued: 

“Where it’s manifestly failing, where it’s losing public support, where it’s not helping to provide opportunity for all, we have to reform it.”

Three years on and just days into her premiership, May has the chance to be a reformist, thanks to one hell of an example of failing capitalism – BHS. 

The report from the Work and Pensions select committee was damning. Philip Green, the business tycoon, bought BHS and took more out than he put in. In a difficult environment, and without new investment, it began to bleed money. Green’s prize became a liability, and by 2014 he was desperate to get rid of it. He found a willing buyer, Paul Sutton, but the buyer had previously been convicted of fraud. So he sold it to Sutton’s former driver instead, for a quid. Yes, you read that right. He sold it to a crook’s driver for a quid.

This might all sound like a ludicrous but entertaining deal, if it wasn’t for the thousands of hapless BHS workers involved. One year later, the business collapsed, along with their job prospects. Not only that, but Green’s lack of attention to the pension fund meant their dreams of a comfortable retirement were now in jeopardy. 

The report called BHS “the unacceptable face of capitalism”. It concluded: 

"The truth is that a large proportion of those who have got rich or richer off the back of BHS are to blame. Sir Philip Green, Dominic Chappell and their respective directors, advisers and hangers-on are all culpable. 

“The tragedy is that those who have lost out are the ordinary employees and pensioners.”

May appears to agree. Her spokeswoman told journalists the PM would “look carefully” at policies to tackle “corporate irresponsibility”. 

She should take the opportunity.

Attempts to reshape capitalism are almost always blunted in practice. Corporations can make threats of their own. Think of Google’s sweetheart tax deals, banks’ excessive pay. Each time politicians tried to clamp down, there were threats of moving overseas. If the economy weakens in response to Brexit, the power to call the shots should tip more towards these companies. 

But this time, there will be few defenders of the BHS approach.

Firstly, the report's revelations about corporate governance damage many well-known brands, which are tarnished by association. Financial services firms will be just as keen as the public to avoid another BHS. Simon Walker, director general of the Institute of Directors, said that the circumstances of the collapse of BHS were “a blight on the reputation of British business”.

Secondly, the pensions issue will not go away. Neglected by Green until it was too late, the £571m hole in the BHS pension finances is extreme. But Tom McPhail from pensions firm Hargreaves Lansdown has warned there are thousands of other defined benefit schemes struggling with deficits. In the light of BHS, May has an opportunity to take an otherwise dusty issue – protections for workplace pensions - and place it top of the agenda. 

Thirdly, the BHS scandal is wreathed in the kind of opaque company structures loathed by voters on the left and right alike. The report found the Green family used private, offshore companies to direct the flow of money away from BHS, which made it in turn hard to investigate. The report stated: “These arrangements were designed to reduce tax bills. They have also had the effect of reducing levels of corporate transparency.”

BHS may have failed as a company, but its demise has succeeded in uniting the left and right. Trade unionists want more protection for workers; City boys are worried about their reputation; patriots mourn the death of a proud British company. May has a mandate to clean up capitalism - she should seize it.