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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The Brexit Beartraps, #2: Could dropping out of the open skies agreement cancel your holiday?

Flying to Europe is about to get a lot more difficult.

So what is it this time, eh? Brexit is going to wipe out every banana planet on the entire planet? Brexit will get the Last Night of the Proms cancelled? Brexit will bring about World War Three?

To be honest, I think we’re pretty well covered already on that last score, but no, this week it’s nothing so terrifying. It’s just that Brexit might get your holiday cancelled.

What are you blithering about now?

Well, only if you want to holiday in Europe, I suppose. If you’re going to Blackpool you’ll be fine. Or Pakistan, according to some people...

You’re making this up.

I’m honestly not, though we can’t entirely rule out the possibility somebody is. Last month Michael O’Leary, the Ryanair boss who attracts headlines the way certain other things attract flies, warned that, “There is a real prospect... that there are going to be no flights between the UK and Europe for a period of weeks, months beyond March 2019... We will be cancelling people’s holidays for summer of 2019.”

He’s just trying to block Brexit, the bloody saboteur.

Well, yes, he’s been quite explicit about that, and says we should just ignore the referendum result. Honestly, he’s so Remainiac he makes me look like Dan Hannan.

But he’s not wrong that there are issues: please fasten your seatbelt, and brace yourself for some turbulence.

Not so long ago, aviation was a very national sort of a business: many of the big airports were owned by nation states, and the airline industry was dominated by the state-backed national flag carriers (British Airways, Air France and so on). Since governments set airline regulations too, that meant those airlines were given all sorts of competitive advantages in their own country, and pretty much everyone faced barriers to entry in others. 

The EU changed all that. Since 1994, the European Single Aviation Market (ESAM) has allowed free movement of people and cargo; established common rules over safety, security, the environment and so on; and ensured fair competition between European airlines. It also means that an AOC – an Air Operator Certificate, the bit of paper an airline needs to fly – from any European country would be enough to operate in all of them. 

Do we really need all these acronyms?

No, alas, we need more of them. There’s also ECAA, the European Common Aviation Area – that’s the area ESAM covers; basically, ESAM is the aviation bit of the single market, and ECAA the aviation bit of the European Economic Area, or EEA. Then there’s ESAA, the European Aviation Safety Agency, which regulates, well, you can probably guess what it regulates to be honest.

All this may sound a bit dry-

It is.

-it is a bit dry, yes. But it’s also the thing that made it much easier to travel around Europe. It made the European aviation industry much more competitive, which is where the whole cheap flights thing came from.

In a speech last December, Andrew Haines, the boss of Britain’s Civil Aviation Authority said that, since 2000, the number of destinations served from UK airports has doubled; since 1993, fares have dropped by a third. Which is brilliant.

Brexit, though, means we’re probably going to have to pull out of these arrangements.

Stop talking Britain down.

Don’t tell me, tell Brexit secretary David Davis. To monitor and enforce all these international agreements, you need an international court system. That’s the European Court of Justice, which ministers have repeatedly made clear that we’re leaving.

So: last March, when Davis was asked by a select committee whether the open skies system would persist, he replied: “One would presume that would not apply to us” – although he promised he’d fight for a successor, which is very reassuring. 

We can always holiday elsewhere. 

Perhaps you can – O’Leary also claimed (I’m still not making this up) that a senior Brexit minister had told him that lost European airline traffic could be made up for through a bilateral agreement with Pakistan. Which seems a bit optimistic to me, but what do I know.

Intercontinental flights are still likely to be more difficult, though. Since 2007, flights between Europe and the US have operated under a separate open skies agreement, and leaving the EU means we’re we’re about to fall out of that, too.  

Surely we’ll just revert to whatever rules there were before.

Apparently not. Airlines for America – a trade body for... well, you can probably guess that, too – has pointed out that, if we do, there are no historic rules to fall back on: there’s no aviation equivalent of the WTO.

The claim that flights are going to just stop is definitely a worst case scenario: in practice, we can probably negotiate a bunch of new agreements. But we’re already negotiating a lot of other things, and we’re on a deadline, so we’re tight for time.

In fact, we’re really tight for time. Airlines for America has also argued that – because so many tickets are sold a year or more in advance – airlines really need a new deal in place by March 2018, if they’re to have faith they can keep flying. So it’s asking for aviation to be prioritised in negotiations.

The only problem is, we can’t negotiate anything else until the EU decides we’ve made enough progress on the divorce bill and the rights of EU nationals. And the clock’s ticking.

This is just remoaning. Brexit will set us free.

A little bit, maybe. CAA’s Haines has also said he believes “talk of significant retrenchment is very much over-stated, and Brexit offers potential opportunities in other areas”. Falling out of Europe means falling out of European ownership rules, so itcould bring foreign capital into the UK aviation industry (assuming anyone still wants to invest, of course). It would also mean more flexibility on “slot rules”, by which airports have to hand out landing times, and which are I gather a source of some contention at the moment.

But Haines also pointed out that the UK has been one of the most influential contributors to European aviation regulations: leaving the European system will mean we lose that influence. And let’s not forget that it was European law that gave passengers the right to redress when things go wrong: if you’ve ever had a refund after long delays, you’ve got the EU to thank.

So: the planes may not stop flying. But the UK will have less influence over the future of aviation; passengers might have fewer consumer rights; and while it’s not clear that Brexit will mean vastly fewer flights, it’s hard to see how it will mean more, so between that and the slide in sterling, prices are likely to rise, too.

It’s not that Brexit is inevitably going to mean disaster. It’s just that it’ll take a lot of effort for very little obvious reward. Which is becoming something of a theme.

Still, we’ll be free of those bureaucrats at the ECJ, won’t be?

This’ll be a great comfort when we’re all holidaying in Grimsby.

Jonn Elledge edits the New Statesman's sister site CityMetric, and writes for the NS about subjects including politics, history and Brexit. You can find him on Twitter or Facebook.