Sales of non-alcoholic beer surge in the United States
As The Wall Street Journal recently reported, over the past year, US non-alc beer sales have skyrocketed by 32%, with an average annual growth rate of 31% over the past four years (NielsenIQ). Heineken’s flagship non-alc brand, Heineken 0.0, has become the top-selling non-alc beer in the US, commanding about 20% of the market share. Heineken is investing a substantial 25% of its global advertising budget in Heineken 0.0.
This growing interest in non-alc beer presents an enticing opportunity for brewers, as it has the potential to significantly expand the beer market by attracting consumers from other beverage categories, such as soft drinks. Remarkably, more than half of the volume in non-alc beer sales originates from outside the traditional beer segment. Moreover, a substantial portion of non-alc beer buyers also purchase alcoholic beverages, indicating a preference for moderation rather than total abstinence.
FRE launches single-serve alcohol-removed wines
FRE’s new mini wines, available in its Chardonnay and Cabernet Sauvignon varieties, hit major retailers nationwide this month. FRE says these single-serve options cater to consumers seeking a convenient non-alc option for on-the-go or when they prefer just one glass of wine. They also have on-premise accounts in mind; with this launch, bars, restaurants, and other establishments can now easily and affordably offer non-alc wine options by the glass.
FRE currently commands a 53% share of the non-alc wine category, amounting to 29 million units annually (Nielsen Total US Retail, Non-Alc Wine, 52 weeks ending 7/15/23). By diversifying their format options in leading varietals, FRE is well-positioned to further expand its presence in retail and on premise. In both contexts, full-sized bottles can be a barrier to consumption; consumers aren’t sure whether they’ll like a particular non-alc, and partially-consumed bottles frequently go to waste at bars and restaurants.
Caleño and Duppy Share launch “So-So Sober October” campaign
Caleño, the non-alcoholic rum brand, has joined forces with alcoholic rum brand Duppy Share on a campaign celebrating moderated drinking throughout October. Their “So-So Sober October” campaign offers a different perspective from the traditional Sober October initiative. Instead, So-So Sober October promotes a balanced approach by focusing on cutting back rather than eliminating alcohol entirely.
This partnership aligns with Caleño’s brand ethos of celebrating moderation. Ellie Webb, the founder of Caleño, emphasized the importance of moderation, saying, “Whether you stick to drinking alcohol-free drinks during the week, mix your Mojitos at home with half non-alcoholic and half alcoholic spirits, or go completely sober for the month, we are here to say it’s OK to be ‘so-so.’” This is the first collaboration between alcoholic and non-alcoholic spirits brands we’ve noticed—a compelling strategy for both parties, as 82% of consumers who drink non-alc beverages also drink alcohol at least some of the time (QualSights, 2022).
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