Functional beverages have long been on the rise within the ready-to-drink mocktail category. Now, we’re starting to see founders apply the same principles to non-alc wines and beers. Note the recent and imminent launches of Allay Wines (we did a Q+A with their founder) and On Beer.
These two brands are in a strong position to succeed. Wine and beer alternatives invite consumer comparisons to “the real deal” and, for many, that means mood alteration in addition to taste. Those new to non-alc commonly ask: “What do these beverages do?” This ties to the (particularly American) idea that a beverage must have a function to have merit. Vox recently wrote about how our obsession with productivity drives this notion. If Allay and On Beer can deliver on their functional promises, they get closer to meeting consumer expectations overall.
Functional non-alc wines and beers also stand to do well because there’s no prep required. Increasingly, we’re seeing that mindful drinkers want something they can easily enjoy. Most aren’t familiar with mixology and many don’t even have basic cocktail tools at home. So, something they can pour straight from a bottle or can appeals. Especially if it already has components they perceive to be elevated, like functional ingredients.
One thing we’re curious about: interest in beer has been waning, particularly among Gen Z. They don’t experience the same nostalgic pull that older generations do. With this market shift looming, beer giant Molson Coors recently proclaimed it’s “moving beyond beer” into energy drinks and non-alc beers. Time will tell if their functional counterparts provide enough of a twist to entice younger drinkers.
Implications:
- Demographics: functional non-alc beers could pique interest among demographics for whom the appeal of traditional beers is waning—or could similarly fizzle with them.
- Consumer trust: brands need to be wary of eroding trust with broad, unproven claims. Instead, they should focus on the scientific connection between their functional ingredients and the state changes they support.
- Hospitality: calming non-alc wines could perform particularly well at bars and restaurants where patrons are looking to unwind after a long day.
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