Semiotic analysis of the low and no alcohol category

1. Semiotics of Low & No Alcohol
July 2019

2. 1. Why? (3)
2. How? (7)
3. What?
• Codes (12)
• Code Dynamics (25)
4. So What? (30)
What’s Inside?

3. WHY?

4. Low- and no-alcohol
(LNA) is taking off
• The number of worldwide drinkers has declined by 5% since
2000, and there is a global trend towards greater moderation
in alcohol consumption
• At the same time, the market for LNA drinks is enjoying
unprecedented growth, with global LNA beer sales growing by
58% between August 2017 and 2018
• While Asia represents only 10% of the LNA category there is
strong growth at the regional level and a trend towards
moderating alcohol consumption in important markets like
India, Japan, South Korea, and Thailand (Foresight Factory,
2018)
LNA is a major innovation opportunity and even those
not entering the space will need to understand its
influence

5. But, the category is
complex and dynamic
Knowing where to play / how to win requires a
strategic understanding of the category’s trajectory
• LNA is an emerging category - this is a rare occurrence and
entrants must be aware of the unique challenges they’ll face:
• Change: The rules of the game are still being decided and
are rapidly evolving, with several new brands and
partnerships announced each month
• Complexity: LNA is also a highly fragmented category,
with brands taking inspiration from a dizzying variety of
adjacent categories and remixing these to develop novel
offerings

6. We provide clarity…
• Clear’s strategic consultants are experts in helping brands go
from insight to strategy and design
• We have conducted a thorough semiotic analysis of the
global LNA category to help brands both understand the
current landscape and anticipate its future trajectory
• Armed with deep category insight, we are uniquely prepared
to help brands manage complexity and rapid change when
entering the LNA market, alongside understanding how LNA
will influence mainstream alcohol categories
This report outlines our initial insights and we’re ready
to work with you on leveraging these

7. HOW?

8. How: Semiotics 101
• Semiotics is the study of how signs and symbols produce
meaning
• We do not speak to consumers when conducting semiotic
analysis
• Instead, we are analysing brand messages
• Semiotics is a powerful tool for telling us things consumers
cannot articulate and helping us anticipate change
This is a basic explanation, and there is a lot more
theory for those who are interested

9. How: Semiotic Analysis
Prepare Mix Serve
(single)
Serve
(flight)
Invent
Collect data from
a wide variety of
sources
(packages;
websites; adverts;
etc) and pull
apart the
symbolic
elements
Search for
patterns in the
ideas being
expressed
across multiple
signs
Develop
‘codes’ which
articulate
discrete units
of meaning
Map the different
codes within the
category and
identify which are
residual /
dominant /
emerging
Identify
opportunity areas
(e.g. optimizing
articulation;
occupying white
spaces)

10. How: Anticipating Trends
Residual
Dominant
Emerging
Time
Density
Codes are assessed according to:
• History (time in category)
• Density (size and prominence)
• Reach (resonance with consumers)
Codes are then categorised as:
• EMERGENT CODES are new codes with low density but
enough reach to indicate potential future importance
• RESIDUAL CODES were once dominant but are now
old-fashioned (longest history)
• DOMINANT CODES have the greatest density, thereby
defining category norms
• Codes then travel from emergent to dominant and
residual in cycles

11. How: Use Cases
Strategy: Develop differentiated, future facing
brand positions
Innovation: Provide inspiration for opportunity
platforms and ideation
Design: Provide creative guidance that links
strategy to execution

12. WHAT?
CODES

13. Category Context
• LNA overlaps with beer, wine and spirits
• This is an emerging category and all the LNA codes are
relatively emergent versus alcoholic drink codes
• LNA codes often represent the fusion of mainstream
alcohol codes with those of other categories (e.g. soda)
• The brands analysed are primarily from US / EU since there
is less innovation originating from APAC
For those familiar with established alcohol categories,
remember that the above means LNA has very
different dynamics

14. Code Name
Code description (summary of the key ideas defining this code)
VISUAL REFERENCE
Illustrative materials drawn from analysis
of products, packaging, comms, POS, etc
Imagery & Language
(the visual and linguistic ‘cues’ used to express the key ideas)
Product Features
(specific product features aligned with those ideas e.g. ingredients; colour)
Key Categories
(which categories the code draws from and overlaps with)
Key Brands
(brands which best represent this code)

15. Still Normal
Letting consumers avoid alcohol whilst having the exact same experience as a regular alcoholic drink (minus getting drunk). For
those who want to fit-in and avoid alcohol without attracting unwanted attention
Imagery & Language
• Blue label on otherwise ‘normal’ pack to subtly signal LNA (category
convention with historical roots in temperance movement)
• Emphasizing participation and inclusivity
• Using dominant codes from respective alcohol category
Product Features
• No additional benefit beyond removing alcohol
• May be low-alcohol rather than 0%
Key Categories
• Mass-market lager
Key Brand(s)
• Heineken 0.0; Hayman’s Small Gin
• (majority of mainstream 0% beers)

16. Naturally Refined
Artisan apothecaries delivering complex, sophisticated, and unforgettable LNA experiences. Their curated distillation of esoteric
ingredients tell an immersive, multi-sensory story that elevates and delights
Imagery & Language
• Hidden, multi-layered meanings (e.g. rich brand and provenance
narratives; clever logos)
• Emphasis on expert knowledge (artisan; apothecary; curated)
• Ingredients provide colour and energy to an otherwise minimalist
aesthetic
Product Features
• Primarily floral, with fruit secondary
• Not necessarily rare, but experts can appreciate the distinct provenance
• Novel combinations and flavour profiles
Key Categories
• Gin; cordial
Key Brand(s)
• Seedlip

17. Hardcore Sobriety
Rebelling against the mainstream notion that you need alcohol to be a badass. For those who DGAF as a matter of principle,
with or without alcohol
Imagery & Language
• Borrowing heavily from punk rock & straight edge movement
• Tongue-in-cheek sincerity
• Standing out slightly more than ‘still normal’ (e.g. unusual names; green
or yellow labels) but still easily mistaken for alcoholic beer
Product Features
• Strong flavour (funky; sour)
Key Categories
• Craft beer
Key Brand(s)
• Brewdog; Braxzz

18. Temperate Roots
Reassuring drinkers that LNA has been part of the culture for generations. Historical roots give consumers permission to enjoy
LNA and encourages them to celebrate it as part of their heritage
Imagery & Language
• Emphasising heritage and tradition (e.g. explicitly referencing age of
recipe; using old-fashioned advertising styles)
• Strong regional variation:
• US: Repurposing language and imagery of the prohibition-era
and temperance movement
• UK: Repurposing Victorian / Georgian advertising styles
• Europe: Repurposing gothic fonts and white / red / gold colours
Product Features
• No additional benefit beyond removing alcohol
Key Categories
• Lager; ale
Key Brand(s)
• Budweiser Prohibition

19. Real Flavour
Alcohol is a distraction and, by removing it, brands can focus on unlocking the superior flavour of their ingredients. Rich and
intense beer flavours makes these brands the perfect meal-time beverage
Imagery & Language
• Superior and strong flavours
• Emphasis on superior ingredients (hops; apples; etc)
• Focusing on the food-pairing just as much as the drink itself
Product Features
• Strong, intense flavours (particularly hops)
Key Categories
• Craft beer; ale; cider
Key Brand(s)
• Big Drop

20. Playfully Different
Just because you’re not drinking, doesn’t mean you’re boring! Why not live a little and try something different? LNA brands give
you a chance to experiment, push the boundaries, and have some fun!
Imagery & Language
• Colourful; busy; loud; bright
• Remixing alcohol categories with soft drinks and fruit juices to create
novel combinations
• Camp humour
Product Features
• Bright coloured drinks (pink; red; yellow)
• Fruity flavours
Key Categories
• Craft beer; soft drinks; aperitifs
Key Brand(s)
• Brewdog; Crodino

21. Authentically Alternative
Why drink alcohol, when you can get a different kind of buzz? This space is for those committed to alternative lifestyles who still
need LNA to deliver a real kick
Imagery & Language
• Alternative lifestyle (surfing; hip hop; hipster)
• Costly signalling (tattoos; big facial hair)
• Down-to-earth (rustic; brown paper; plaid)
Product Features
• Same kick (e.g. vinegar fermentation)
• Different high (e.g. THC infusion)
Key Categories
• Spirits; wine; cannabis
Key Brand(s)
• Rebel Coast; Two Roots; Shrb
We set out to mimic the
experience you’d find with
traditional wine; a couple
glasses will put most
people in a great place –
Rebel Coast

22. Performance+
Beer minus alcohol is good for you. Modern science creates beverages that go beyond avoiding negatives to enhance physical
performance
Imagery & Language
• Scientific language (e.g. isotonic)
• Sports (e.g. racing; climbing; team sports)
• Secondary emphasis on avoiding negatives (e.g. clear-head)
Product Features
• Low calorie; vitamins; organic
Key Categories
• Beer; isotonic sports drinks
Key Brand(s)
• Fitbeer; Racing Beer

23. Mind, Body, & Soul
Beer can nourish the spirit and contribute to overall health and wellness. Enjoy a moment of mindfulness and nourishment. The
beverage is one of your tools for growth and self-development
Imagery & Language
• Ancient eastern mysticism (e.g. Buddhism; Hinduism)
• Borrowing from various self-help movements (mindfulness; health &
wellness; self-care)
Product Features
• Natural; organic; vegan
• Full of vitamins and ‘good stuff’
• New and exotic flavours
Key Categories
• Beer; fruit juice; kombucha
Key Brand(s)
• Nirvana Brewery

24. Good Vibes
Enjoy the best night of your life and wake up without a hangover. LNA helps you make the most of any occasion, whether that’s
a wild party or a summertime session. Be your best self, all the time
Imagery & Language
• Focused on occasions that are strongly alcohol related (summertime
drinking; wild parties)
• High energy; bright colours; fun; exciting
Product Features
• No additional benefit beyond removing alcohol
• (Focused on the occasion rather than the product itself)
Key Categories
• Beer; spirits; cannabis
Key Brand(s)
• Infinite Session; Caleño

25. WHAT?
CODE DYNAMICS

26. Semiotic Square
Traditional
We can map the LNA codes according to key binary tensions within the category
Me
We
Experimental

27. Semiotic Square
Traditional
Novel Experience
Standing Out Fitting In
Consistent Experience
Me
We
We can then identify key territories within the category
Experimental

28. Semiotic Square
Me
We
Still
Normal
Real
Flavour
Naturally
Refined
Authentically
Alternative
Good
Vibes
Hardcore
Sobriety
Mind, Body,
& Soul
Performance+
Temperate
Roots
Playfully
Different
Novel Experience
Standing Out
Consistent Experience
Fitting In
We can then map our codes according to these oppositions and territories
TraditionalExperimental

29. Anticipating Trends
Residual Dominant Emerging
Still Normal
Real Flavour
Naturally Refined
Authentically Alternative
Good Vibes
Hardcore Sobriety
Mind, Body, & Soul
Performance+
Temperate Roots
Playfully Different

30. SO WHAT?

31. So What?
At Clear, we’re ready to help you answer these
questions…
Which codes have greatest potential?
Where are the white spaces?
Where are the opportunity spaces in your portfolio?
Innovation
Strategy
Design
What are the consumer opportunity platforms?
How can you disrupt the category?
How well are your brands articulating relevant codes?
How should you tailor codes to different segments?

32. Thank you
Jacob Harbord
Associate Director, Singapore
Jacob.Harbord@clearstrategy.com
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