Sales of high-end sparkling teas soared over Christmas as it replaced champagne during festive toasts, suggesting that tea is winning new loyal fans as a soft drink version with “wellbeing” powers as well as a headache-free alternative to booze.
Sparkling tea is fast becoming a staple of the “nolo” ranges of supermarkets and drinks specialists amid the annual “dry January” marketing blitz.
The Buckinghamshire-based drinks company Real says demand for its sparkling tea, which costs about £10 a bottle, is soaring, The Guardian reported.
Over Christmas, sales of its fizz, which includes green tea-based Dry Dragon and Peony Blush (from white peony tea), were 72 per cent and 60 per cent up on 2023 levels in Ocado and Waitrose respectively. The company is also behind the wine merchant Berry Bros & Rudd’s £17 sparkling tea, of which 1,600 bottles were sold over the holiday period.
Last year, Twinings entered the fray with its own canned sparkling tea aimed at health-conscious consumers. The cans are almost £2 each but feature in some supermarket “meal deals”.
Apart from alcohol range, sparkling tea has also started giving competition to cola and lemonade for the lunchtime trade in supermarket drinks chillers.
The market is also seeing a huge demand of bubble tea, kombucha and even energy drinks containing tea.
According to Polina Jones, a food and drink expert at the data company NIQ, Britons are not necessarily “falling out of love” with tea, they are just drinking it in a different way.
A recent poll by the research company Mintel suggested that less than half of the nation – 45 per cent of adults – drink standard breakfast tea at least once a day. The amount being bought by Britons has tumbled by almost a fifth since 2020, it says.
Research points to a big opportunity for non-alcoholic drinks that actually taste good. A Mintel poll conducted last year found 59 per cent of adults had limited their consumption in the past 12 months, or did not drink alcohol.
Alcohol moderation is now a “mainstream” trend, according to Mintel’s Kiti Soininen. She points to the presence of tannins in tea, which are also a crucial component in the flavour profile of many wines.
“The absence of that pleasingly ‘mouth-drying’ element of tannins can be a factor in why alcohol alternatives taste too thin or too sweet,” The Guardian quoted Soininen as saying.
However, sparkling tea faces the “same hurdle as other alcohol alternatives in justifying its price” as just over half of adults told Mintel that the price of “nolo” drinks puts them off.
Food price inflation remained stable last month though experts are warning that with a series of price pressures on the horizon, shop price deflation is likely to become a thing of the past.
According to figures released by British Retail Consortium (BRC) on Thursday (9), shop price deflation was 1.0 per cent in December, down from deflation of 0.6 per cent in the previous month. This is below the three-month average rate of -0.8 per cent. Shop price annual growth remained at its lowest rate since August 2021.
Non-Food remained in deflation at -2.4 per cent in December.
Food inflation was unchanged at 1.8 per cent in December. This is in line with the three-month average rate of 1.8 per cent. The annual rate has eased considerably since the start of the year and inflation remained at its lowest rate since December 2021.
Fresh Food inflation was unchanged in December, at 1.2 per cent. This is slightly above the three-month average rate of 1.1 per cent. Inflation was its lowest since November 2021.
Ambient Food inflation edged up to 2.8 per cent in December, from 2.7 per cent in November. This is in line with the three-month average rate of 2.8 per cent and remained at its lowest since February 2022.
Commenting on the figures, Helen Dickinson, Chief Executive of the BRC, said, “Retailers discounted heavily for Black Friday this year as they attempted to make up for weaker sales earlier in the year.
"However, the later Black Friday timing brought many of the non-food discounts into the measurement period, making non-food prices look more deflationary than the underlying trend. With food inflation bottoming out at 1.8 per cent, and many price pressures on the horizon, shop price deflation is likely to become a thing of the past.
“As retailers battle the £7 billion of increased costs in 2025 from the Budget, including higher employer NI, National Living Wage, and new packaging levies, there is little hope of prices going anywhere but up.
"Modelling by the BRC and retail CFOs suggest food prices will rise by an average of 4.2 per cent in the latter half of the year, while Non-food will return firmly to inflation.
"Government can still take steps to mitigate these price pressures, and it must ensure that its proposed reforms to business rates do not result in any stores paying more in rates than they do already.”
Mike Watkins, Head of Retailer and Business Insight, NielsenIQ, added, “During December, shoppers benefited from both lower inflation than last year and bigger discounts as both food and non-food retailers were keen to drive sales after a slow start to the quarter.
"However, higher household costs are unlikely to dissipate anytime soon so retailers will need to carefully manage any inflationary pressure in the months ahead.”
Tesco has recorded its “biggest ever Christmas”, with the UK’s largest supermarket chain landing its biggest share of the festive shopping trolley since 2016.
The grocer on Thursday (9) revealed that sales at established UK stores rose 4 per cent in the six weeks to 4 January, with fresh food performing particularly strongly and clothing and homeware sales also up.
Tesco now controls 28.5 per cent of the grocery market and gained share from premium and discounter rivals over the 12 weeks to 29 December, according to the analysts Kantar.
Tesco added that Booker saw a core retail growth of +1.3 per cent as its symbol brands continue to perform well despite a subdued market backdrop. Overall Booker performance reflects continued decline in the tobacco market.
Ken Murphy, Tesco’s Chief Executive, expressed pride in the team's efforts during the Christmas period, highlighting the retailer’s focus on delivering value, quality, and service to all customers, regardless of how they chose to shop.
Murphy noted that Tesco has maintained its position as the UK’s cheapest full-line grocer for over two years while improving product quality across its ranges.
The festive success was supported by an additional 28,000 colleagues, helping to provide exceptional in-store and online experiences for customers. Murphy also extended his gratitude to the entire Tesco team for their hard work and dedication.
Looking ahead to 2025, Tesco remains focused on continuing to offer top-quality products and outstanding shopping experiences to its customers.
Sofie Willmott, Associate Retail Director at GlobalData, offers her view, “Tesco has reported higher sales growth than Aldi over Christmas evidencing how the market leader’s focus on product and service innovation, as well as value for money, has paid off, strengthening its position in the market.
"Despite Aldi opening stores throughout 2024, including 11 new stores in November and December, which will have driven total growth of 3.4% (for the four weeks to 24 December 2024), Tesco achieved better like-for-like growth (for the six weeks to 4 January 2025) of 4.1%, up against strong comparatives.
Tesco continues to outperform the UK food and grocery market constantly improving its proposition to meet shoppers’ needs in whichever way it can, for example, through its online marketplace which launched in June and roll out of Whoosh rapid delivery to more stores.
“UK food sales rose 4.7 per cent driven by volume growth, with sales being particularly strong in fresh food and its Finest range seeing impressive growth of 15.5 per cent as shoppers treated themselves over the festive period.
Willmott added that Tesco is standing out amongst its peers currently, but it must continue evolving in its focus areas, such as product innovation, online and showcasing value, to maintain momentum.
The Scottish Grocers Federation (SGF) Go Local Programme launched on 1 December 2020, and set out to support convenience stores throughout Scotland to provide dedicated, long-term display space for locally sourced Scottish products, to drive local sales and ultimately support the economic recovery of Scotland’s’ food & drink sector from Covid-19.
The project, delivered with the support of the Scottish Government and Scotland Food & Drink, has gone from “strength to strength”, providing dedicated space for local products under the Go Local banner.
Findings in a new joint report published today (8), show a remarkable increase in Scottish products being sold over the counter in participating stores. Averaging a 44 per cent growth in sales of goods sourced from local producers. It also highlights a significant multiplier impact and boost for the local economy, with expected increases of around £169k per store per annum.
Administered by the SGF, the Go Local Programme provides individual grants for retailers to invest in developing a dedicated space for local products (£5,500 in 2024) and has a particular focus on facilitating “meet-the-buyer” events linking up local retailers with producers in their area.
“We have seen the number of people wanting to support local producers continues to grow and this independent report shows the real impact that the Go Local Programme has had in getting more and more of our fantastic local food and drink on the shelves of convenience stores, a vitally important sector,” said Rural Affairs Secretary Mairi Gougeon. “The programme is bringing real benefits to local communities, supports the economy and importantly offers more opportunities for our wonderful food and drink producers to showcase their products.”
Jamie Buchanan, Go Local Programme Director, said: “The fantastic thing about Go Local is that it is a win-win for everyone. Customers ensure they are getting only the best quality local produce and boosting the local economy at the same time. Meanwhile, producers and retailers get direct access to their local market while also improving sustainability and cutting out long-distance transport costs.
“It’s no surprise that the programme has gone from strength to strength since its launch in December 2020, and this report confirms the positive impact for participating stores. It has been great to work with both Leigh and Maria developing the report and I want to thank them, and all involved in delivering the programme these past four years.”
The in-depth report on the project has been developed by Research Fellow, Dr Maria Rybaczewska, and Professor of Retail Studies, Leigh Sparks, from the University of Stirling.
“The Go Local Programme has demonstrated that concerted action from retailers and producers to highlight and spotlight local products provides a significant and sustained growth in sales of these products and overall for the stores,” said Prof. Sparks.
“Joining the project makes a huge difference in the overall performance of local products, with the increased multiplier effect building community resilience and the focus on local producers and products reducing the carbon and environmental impacts locally and nationally.”
Scotland Food & Drink have also been instrumental in expanding the range of compliant products available through the project.
Scotland Food & Drink Programme Director, Amanda Brown commented: “The Go Local Programme is a great example of how selling and promoting locally sourced Scottish products can build sales both for the retailer but also the producers. Research tells us that Scottish consumers want to buy more Scottish brands and products, and the project is helping make this happen.”
The Portman Group’s seventh annual survey in partnership with YouGov reveals more people are drinking low and no alcohol alternatives than ever before, showing the UK is drinking more moderately than ever.
The results show that well over a third (38 per cent) of UK drinkers are now consuming low and no alcohol alternatives semi-regularly (12 per cent regularly and 26 per cent occasionally) – compared to 35 per cent in 2023 and 29 per cent in 2022, with a notable increase in regular consumption from eight per cent in 2023 to 12 per cent in 2024.
Young adults continue to drive the trend as the biggest consumers of low and no alcohol alternatives, with close to half (46 per cent) of 25-34 year olds surveyed considering themselves either an occasional or regular drinker of alcohol alternatives, compared to 37 per cent in 2023. Whilst 40 per cent of 18-24 year olds also drink these products semi-regularly.
Trends show that the younger generation also continue to be the most sober age group overall, with 39 per cent of 18-24 year olds not drinking alcohol at all.
The results continue to highlight the positive impact of low and no alcohol alternatives in helping people to moderate their drinking, with almost a quarter (24 per cent) of current alcohol drinkers stating that their weekly consumption has fallen due to low and no alcohol products, up from 23 per cent in 2023 and 21 per cent in 2022.
The survey also highlights an increasingly health-conscious UK consumer, with 29 per cent of low and no drinkers citing collective “health and medical” concerns as a key reason for choosing an alcohol alternative – an increase of almost a third (32 per cent) when compared to 2021 (22 per cent).
Not only are UK drinkers increasingly using low and no alcohol alternatives as a tool with which to moderate their drinking, but their rise in popularity is playing an important role in helping to tackle wider alcohol harms such as drink driving.
For the seventh year in a row, being able to drive home from social events is the number one reason cited by low and no drinkers for choosing an alcohol alternative, with over a quarter (28 per cent) stating they will most commonly drink low and no alternatives in situations where they are unable to have a regular strength alcoholic drink such as when they are driving. This is especially important as pubs and bars remain the most popular locations for adults to drink low and no alternatives.
While our research continues to tell a positive story of how low and no products are becoming increasingly normalised in everyday life, almost a quarter of adults (24 per cent) would still like to see more low and no options available on tap in pubs to further encourage them to drink. They also want to see greater use of price promotions (30 per cent) and greater availability of low and no products in non-traditional hospitality spaces (26 per cent) such as nightclubs, theatres, cinemas and live music and event venues.
“It’s fantastic to see low and no alternatives continuing to soar in popularity, while helping to encourage more mindful and moderate consumption among UK alcohol drinkers,” said Matt Lambert, Portman Group CEO. “We welcome the drinks and hospitality industry continuing to work together to increase choice, availability and visibility of low and no alcohol alternatives, and we continue to urge the UK government to provide us with the outcome of the recent consultation on low alcohol descriptors which will further facilitate growth of the UK low and no alcohol market.”
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A Christmas shopper walks on South Molton street on December 6, 2024 in London, England.
Total Till sales growth slowed at UK supermarkets (+3.2%) in the last four weeks ending 28 December 2025, down from 3.7 per cent in the previous month, according to new data released today byNIQ.
After a slow start to December 2024, food sales rallied in the final three weeks leading up to Christmas, with sales hitting £14.6bn, helped by intense discounts and increased promotional activity.
“In the last four weeks we've seen the highest levels of promotions in the last three years, with 27 per cent of all FMCG sales being purchased on promotion, with branded promotions at 37 per cent of sales,” Mike Watkins, NIQ’s UK Head of Retailer and Business Insight, said.
“This has no doubt helped to boost purchasing over the Christmas period. In particular, this was led by Tesco and Sainsbury’s where promotional spending on FMCG increased to 35 per cent and 34 per cent respectively as these retailers engaged shoppers with big loyalty app savings.”
NIQ data reveals over the last four weeks, in-store visits were up 8 per cent helping in-store sales to increase 3.6 per cent on this time last year. This came at the expense of online where sales fell -1.7 per cent with online share falling to 11.9 per cent from 12.5 per cent a year ago. The timing of Christmas Eve will have given a boost to stores with Monday 23 December the peak shopping day.
Despite the decrease in online share of sales, Ocado (+13.9%) was the fastest-growing retailer over the last four weeks, while the discounters were the fastest-growing channel (+5.5%). Aldi and Lidl’s combined market share increased to 16.3 per cent, up from 15.8 per cent a year ago.
In contrast, trading over the last four weeks was more challenging for the convenience channel (+2.4%).
Moreover, Tesco (+4.5%) grew market share, with Sainsbury’s (+3.1%) holding market share with both retailers seeing strong increases in visits and new shoppers. Marks & Spencer momentum continued (+6.8%) and this resulted in its highest ever market share of 4.8 per cent on record.
NIQ data shows that in the last four weeks, shoppers put fewer items in their baskets, with an average basket value of £21.95, down 4.9 per cent compared to last year. This suggests that shoppers are still bearing the brunt of the high cost of living. This is despite dissipating food inflation at 1.8 per cent compared to 7.8 per cent a year ago.
“Overall, it was a good Christmas for most food retailers with sales growths in line with the expectations that had been set in the last three months,” Watkins noted.
“The topline growths were helped by the return of low inflation but also by shoppers being inclined to buy more in the final week leading up to Christmas Eve. However, shoppers still had to spend more money this year on household bills before buying Christmas indulgences and this may have taken the edge off the growth in some other categories such as alcohol and also household.”
With shoppers purchasing items to celebrate the festive season with family and friends, NIQ data shows that there was a significant boost in sales for sushi (+20%), olives and antipasti (+10%) as well as chilled bread (+12%), nuts (+10%) and fresh and frozen fruit (+10%).
There was also strong growth across the major supermarkets for fresh produce (+7.4%), bakery (+4.8%) and soft drinks (+3.6%). Sales for meat, fish and poultry also fared better than the same period last year - with value growth up 4.4 per cent and 2.1 per cent in unit growth. Confectionery also did well with 13 per cent value growth and 5.5 per cent unit growth. Health and Beauty also performed well at 6.3 per cent.
NIQ data also shows that sales for beers, wines and spirits fell flat with sales weakening to -1.6 per cent value growth and -1.3 per cent unit growth. However, sales rose for stout (+13%), maybe influenced by the challenges around draft supply of Guinness to pubs.
“Looking ahead to 2025, we expect shoppers to keep managing their budgets by shopping smart and shopping around for wherever the savings are the most attractive,” Watkins said. “This means that shopping ‘little and often’ will continue with omnichannel shopping becoming an even bigger consumer trend across the industry.”