Non-Alc Industry Landscape: Week of Oct 9, 2023

Athletic Brewing secures distribution deal for 5,000 UK venues

Athletic Brewing has partnered with James Clay and Sons to expand in the UK. The brand, which already made its debut in Tesco stores, now aims to increase its presence in British bars and restaurants. Their international business has seen significant growth, and through the James Clay deal they’ll have access to over 5,000 UK venues. The distribution strategy targets nine major UK cities, with a focus on their flagship brews Run Wild IPA and Upside Dawn Golden.

Athletic Brewing dominates the US market in this category. The company owns two major breweries and received a $50 million investment from Keurig Dr Pepper last year. So, it will be interesting to see if they can build a similarly strong position in Europe where incumbents are rapidly expanding their non-alc offerings. Demand for Guinness 0.0, for example, is shooting through the roof. Diageo recently announced it will invest $27 million in a Dublin-based facility to increase production of the zero-alcohol brand by 300%. This expansion comes on the heels of heavy marketing promotion. To advertise its non-alc product, Guinness shelled out millions for premiere sports sponsorships and the largest-ever responsible drinking campaign, in which 50,000 St. Patrick’s Day revelers across 300 locations in Ireland received free pints.

High Rise partners with Sony Music Nashville

High Rise Beverage Company has partnered with Sony Music Nashville as their official provider of non-alcoholic beverages. This collaboration aims to cater to the growing demand for non-alcoholic drink options, emphasizing an inclusive drinking environment. Upcoming Sony Music Nashville events and award ceremonies will prominently feature the High Rise brand. Moreover, High Rise will supply beverages for various SMN functions, including artist hospitality, staff gatherings, and in-office artist shows.

This ties to a trend in the broader music industry: drinking at festivals, especially among Gen Z, has dropped and venues are beginning to notice. Colin Angus from the University of Sheffield’s alcohol research group and Millie Gooch, a prominent sober community member, commented on this shift. Some journalists go as far to say that Gen Z’s drinking habits are killing concerts, while others have explored why people in general aren’t “getting trashed at concerts anymore.” Meanwhile, non-alcoholic options at these venues are starting to emerge, and this could be the answer for venues’ bottom lines. See The New Bar’s prominent presence at Coachella. This summer, I personally witnessed that non-alc bars had twice the real estate of alcoholic ones at the Nation of Gondwana festival, Berlin’s answer to Burning Man.

Revolution launches its first non-alc SKU

Revolution Brewing, Illinois’ premier independent brewery, has unveiled its latest product, Super Zero sparkling hop water. Recognizing the evolving preferences in the craft beer industry, the brewery has crafted Super Zero to cater to those who occasionally abstain from alcohol while still desiring a hop-infused flavor. In development since 2022, the drink emphasizes the notes of the Sabro and Nectaron hop varieties.

Hop seltzer as a category is poised to grow. Some signals: Brooklyn Brewery’s recent investment in Hoplark, beer’s waning dominance (which could make room for beer-adjacent bevs), the prevalence of grain-free diets, and the popularity of subtly flavored carbonated beverages like La Croix. There are currently 13 hop seltzers in our directory.