Abstract
Low- and no-alcohol beer is one of the most trending categories within the alcohol space and
this popularity is translated into its significant growth. Although there has been mention of
developed countries and how their consumers are becoming more health-conscious, South
African millennials are following this movement and, as result, are selecting to consume lowand
no-alcohol beer. Since millennials are becoming more health-conscious, low- and noalcohol
beer brands provide them with a great product and social experience without the side
effects of alcoholic beer. The dynamics of the alcohol industry worldwide, including in South
Africa, are changing, with millennials being a core driver of this change. The COVID-19
pandemic has not only changed consumer behaviour, but also expedited the growth of lowand
no-alcohol beer in South Africa due to nationwide lockdowns, whereby consumers would
only be able to purchase these items within the alcohol category. Therefore, during this period,
consumers were able to become more familiar with the low- and no-alcohol beer brands and
start to build brand awareness when doing their shopping. This is important because low- and
no-alcohol beer brands need to continue the momentum of growth and understand millennials’
drivers for consumption, what aspects help to build brand relationships with them, and what
are the best platforms and channels to communicate with South African millennials.
An empirical study was conducted to determine the influence of brand knowledge (brand
awareness and brand image) and brand relationships (brand satisfaction, brand trust, and
brand attachment) on the behavioural outcomes (current and future consumption and word of
mouth) of millennial consumers of low- and no-alcohol beer residing in the South African
province of Gauteng. The study’s target population consisted of millennials (born between
1980 and 2000) who had consumed low- and no-alcohol beer in the last 12 months and
resided in Gauteng. A quantitative non-probability research approach was employed and a
two-pronged sampling process was applied to identify and select 439 participants. In the first
sampling phase, sampling units were selected via two-pronged quota sampling, according to
the population demographics of the country (as per 2021 South African statistics) and a 50-
50 split between genders. In the second sampling phase, convenience sampling was used.
Data was collected using a self-administered questionnaire adapted from previously validated
scales. Descriptive analysis, confirmatory factor analysis, and structural equation modelling
were applied to achieve the study’s objectives.
The findings of the study indicate that brand influence and brand relationships have a
significant influence on millennials’ consumption of low- and no-alcohol beer. Additionally,
v
moderating variables were found to have a positive influence, namely brand experience on
the relationship between brand awareness and brand satisfaction as well as traditional word
of mouth on the relationship between current and future consumption. From these results, the
hypotheses were accepted. Moreover, a robust and valid model was constructed to assist lowand
no-alcohol beer brands in improving and enhancing their efforts to create brand
knowledge, develop brand relationships, and drive current and future consumption of low- and
no-alcohol beer in South Africa.
Based on the results obtained for this study, implications, recommendations, and proposed
strategies are provided for low- and no-alcohol beer brands. Numerous recommendations are
outlined to assist low- and no-alcohol beer brands to better understand and anticipate South
African millennials’ consumption behaviour. The alignment of the recommendations with the
proposed strategies contribute to robust brand knowledge, enhanced brand relationships as
well as increased current and future consumption of low- and no-alcohol beer. Consequently,
low- and no-alcohol beer brands have the necessary insight on how to operate within the
highly competitive and lucrative low- and no-alcohol beer industry as well as robust and holistic
strategies to compete and maintain their positioning in the market.