AB InBev celebrates investment in booming no and low alcohol beer market with new Magor facility

AB InBev has significantly expanded its operations in South Wales, unveiling a state-of-the-art de-alcoholisation facility at its Magor brewery to meet the surging demand for no and low alcohol beers. As the global trend for healthier lifestyles reshapes consumer drinking habits, the brewing giant is capitalising on a market once stigmatised for poor taste and limited choice.

The brewery, which last year produced more than one billion pints of Budweiser, Corona, and Stella Artois, can now manufacture popular alcohol-free alternatives. The new annex employs advanced vacuum distillation technology, a method that lowers the boiling point of alcohol through reduced pressure, allowing brewers to remove the alcohol while preserving the original flavour and aroma. By avoiding high temperatures that can compromise taste, this technique maintains the character of established brands such as Stella Artois and Corona in their 0 percent versions.

Brian Perkins, who leads AB InBev’s UK business, described early alcohol-free beers as “lousy,” attributing past failures to primitive technology that failed to treat beer’s delicate profile with appropriate care. The latest process, he said, reflects a major leap in quality. The investment demonstrates AB InBev’s belief that no and low alcohol beer will shape the future of brewing, offering a substantial commercial opportunity rather than a disruptive threat to traditional business.

With 29 no-alcohol brands, including Corona Cero and Budweiser Zero, AB InBev’s recent reporting noted that these products drove a 27 percent rise in global revenue for the category. Alcohol-free beers are now appearing on tap at high-profile events such as Wimbledon and on trial in select British pubs, with plans for broader distribution in the coming year.

The UK beer market, valued at over £13.5bn in 2024, is witnessing rapid growth in demand for no-alcohol beers, which have increased by more than 20 percent annually since 2019. These beers now represent around 2 percent of total volume, a figure projected to double by 2029 according to IWSR forecasts. According to IWSR’s Susie Goldspink, the 0 percent beer segment remains the most dynamic within the no and low alcohol market, with strong innovation and rising consumer engagement.

Despite concerns from some consumers that alcohol-free beers are priced on par with standard options, Perkins points to the substantial investment required for advanced de-alcoholisation equipment and additional production processes. The company has devoted $3.9m to the new Magor facility, an outlay Perkins calls essential to remain at the forefront of industry innovation as some competitors reduce UK investment in a challenging hospitality market.

The support of policymakers such as trade policy minister Chris Bryant, who highlighted new business rates relief and praised the creation and preservation of jobs in Wales, underscores the significance of AB InBev’s investment. By producing alcohol-free beers domestically instead of importing from overseas, the Magor site strengthens the local economy and secures a leading position in an evolving marketplace.