Carling Reduces Lager Alcohol Content to 3.4% Amid Rising Costs

Beer brand Carling is set to reduce the alcohol content of its flagship lager from 4% to 3.4% starting in October. This reduction in alcohol by volume (ABV) is attributed to rising operational costs and falling sales, with the company also poised to take advantage of lower alcohol duty rates for beers between 1.3% and 3.4% ABV. These lower duties represent a significant tax saving, costing £9.96 per liter of pure alcohol compared to £22.58 for drinks between 3.5% and 8.4% ABV.

Molson Coors, the owner of Carling, stated that extensive consumer testing has shown the new 3.4% ABV lager retains the expected taste profile of Carling and performed better in overall taste tests. Despite the change, the company asserts the drink will still offer the same 'perfectly balanced and refreshing' experience. Carling's sales have reportedly dropped by 15.6% over the past year, totaling £232.8 million.

This decision by Carling occurs amidst a wider trend in the UK where beer strength is decreasing. A study by researchers from the University of Sheffield found that the average alcohol content of beer dropped from 4.5% in 2022 to 4.4% in the following year. The study, which analyzed data from six million alcohol purchases, suggests that changes to duty rates implemented in August 2023 have encouraged brewers to reformulate their products to lower ABV levels. Brands such as Amstel, Carlsberg, Fosters, Grolsch, and John Smith's have also made similar reductions to remain below the 3.5% ABV threshold for higher tax rates.

Before the duty changes, only 3% of beer consumed in Britain was below 3.5% ABV. By last year, this figure had risen to 18.1%, nearly a fifth of the total beer market. The researchers noted a strong correlation between the timing of the duty reforms and the increase in product reformulation, indicating the tax changes have likely played a role.

The shift towards lower-strength beverages has potential implications for public health. Alcohol is identified as a major risk factor for illness and premature death, with over 10,000 alcohol-related deaths recorded in 2023. Professor Colin Angus, who led the University of Sheffield study, suggested that lowering alcohol content could positively impact public health by encouraging individuals to consume less alcohol overall. The study estimates that the reduction in average product strength may have decreased average alcohol consumption by 2.7% since 2022. However, he cautioned that reformulation alone may not be sufficient to address the high rates of alcohol harm, which remain significantly elevated compared to pre-2019 levels.

In contrast to the reduced ABV of its main lager, Carling also launched a premium version, Carling Black Label, earlier this year with an ABV of 4.7%. A brand director for Carling noted a significant shift in how consumers engage with the lager category, with evolving expectations and a demand for a balanced range of trusted options from the brand.