The Zero Proof
Booze-free beverages are poised for growth.
Mixers. Diversifying, major alcohol brands are growing zero-proof portfolios.
- Last week, Moët Hennessy invested in NA sparkling wine label French Bloom.
- Absolut owner Pernod Ricard backed Lewis Hamilton’s NA tequila Almave in August.
- In September, Smirnoff owner Diageo purchased Ritual Zero Proof, maker of alcohol-free spirits — adding to its 2019 acquisition of category leader Seedlip.
An early mover, NA beer brand Athletic Brewing added $50M in July and counts Keurig Dr Pepper as an investor.
Over the influence. With recent studies linking drinking to cancer and premature death, the WHO deemed any amount of alcohol unsafe, and the CDC revised guidelines accordingly.
Seeing new science, 45% of 21+ Gen Zers are staying sober, while habituated generations are cutting back with the help of NA alternatives, leading the sector to 29% volume growth in ‘23.
Keeping tabs. As premium non-alc options emerge, specialty stockists The Zero Proof, The New Bar, and Sèchey are playing tastemaker, with the latter tapped to curate Target’s NA selection.
Despite outpacing conventional, the young category accounts for just ~1% of global alcohol sales. Overly ambitious, alcohol-free chain Boisson went bankrupt earlier this year.
Looking ahead: Buy-in from major corporations signals a steady future for zero-proof. The more NA options available, the more normalized not drinking will be.
