Raising the Bar
With high consumer demand and product innovation, the non-alcoholic beverage category continues to boom
By Carly Peters
In the past, people who didn’t want to drink were often left with uninspiring soda or sugary juices. However, as consumers are redefining the way they sip and socialize, the non-alcoholic beverage category has quickly caught up to consumer demand for great tasting, clean, and quality options. This shift presents a substantial opportunity for retailers to expand their product offerings and attract consumers by making these options more accessible and visible.
According to Canadian Health Food Association’s (CHFA) recent report, The Trends Shaping the NOW (natural, organic, wellness) Industry, nearly 50 per cent of Canadians are showing interest in non-alcoholic products, with women and younger consumers driving the trend.
“The rise of the non-alcoholic and ‘sober curious’ movements parallel the growth of the natural, organic, and wellness industries, which have transitioned from niche to mainstream,” explains Randi Ptolemy, content and PR manager for the CFHA. “Health-conscious consumers are increasingly considering mental and emotional wellness, with mindfulness and self-care practices growing in popularity. Incorporating non-alcoholic options into daily life is part of this evolving lifestyle.”
These findings match what’s being observed at the CHFA NOW trade show. Over the past few years, Ptolemy states they’ve seen a significant uptick in non-alcoholic brands on the show floor. “What began with Partake Brewing’s impactful debut in 2018 has since expanded.”
The low and non-alcoholic sector has exploded into a $13-billion-dollar global industry, recording staggering year-over-year growth, with Canadians among its top international consumers. According to NielsenIQ, the overall market grew by more than 35 per cent in 2023, and 120 per cent over the past three years.
However, this segment is poised for significant changes with the help of better distillation and brewing techniques, elegant bottling, and of more sophisticated options that close the flavour gap between alcoholic and non-alcoholic drinks.
At Sobr Market in Winnipeg, founders Jessie and Shane Halliburton offer more than 700+ products that range from dark “spirits” to RTD mocktails to herbal adaptogen concoctions. What started as an online store with 100 skus, has outgrown three physical locations in just two years, along with an expansion into the Toronto market and future franchise opportunities.
“Who is our demographic? It’s everyone to anyone. It is young adults – GenZ is not drinking as much – it’s parents not wanting to look after kids with a hangover the next day; it’s on call workers; it’s general health concerns; and then there’s the whole other side of addiction,” says Jesse, emphasizing the importance of understanding the diverse reasons behind this choice to better cater to demand
According to Nielsen IQ, non-alcoholic beer leads the category, making up 76 per cent of sales with a growth rate of 23.3 per cent, followed by non-alcoholic spirits with sales up by 67.7 per cent. But with 4.8 per cent of the category’s sales being attributed to innovation, more shelf space needs to be added to include the brands that will move the category forward.
Functional beverages, featuring herbs and roots like ashwanganda, lion’s mane and reishi mushrooms, are driving interest in the non-alcoholic category, says Jesse, while producers continue to pump out cleaner products overall. “We are seeing companies being mindful of chemical colourants and replacing sugar alcohols for things like sugar cane or stevia.”
At CHFA NOW Toronto, RTDs were a major focus, with sparkling water, tea, and kombucha taking centre stage, offering even more ways to enjoy non-alcoholic drinks.
Whatever the non-alc beverage, don’t hide them, says Jesse. “In grocery they are not always in the most visible spots.” Research commissioned by Diageo agrees, finding that seven in 10 shoppers found it hard to locate alcohol-free drinks. Clear signage, well-placed displays with complementary products, and brand pop-ups can make all the difference in guiding consumers to these options.
-30-
Catch the Fever
Fever-Tree Canada’s Sparkling Sicilian Lemonade and Distillers Cola in the fall are two flavours that can be enjoyed as a soft drink on its own or in a non-alcoholic cocktail. Most offerings in this category are high in sugar or something akin to a drink for kids – and that’s where Fever-Tree comes in. All 16 flavours contain naturally sourced ingredients and no artificial flavours, colours, or sweeteners. Merchandising tip: Cross promote with espresso for the very popular espresso tonic.
Fine Wine
I-D Foods Corporation’s have added two new premium dealcoholized wines to their collection: St. Regis Sauvignon Blanc and St. Regis Pinot Noir. Designed to provide all the rich, nuanced flavours you expect from traditional wines—minus the alcohol – they offer premium quality and are priced accessibly. Merchandising tip: Include space for premium non-alcoholic options so consumers can experience a level of drink sophistication along with the health and convenience benefits.
Get in the Spirit
With tequila being the biggest growth category in Canada, Seedlip has launched Notas de Agave, a full-flavour non-alc alternative to trending agave-inspired cocktails like Margaritas or Palomas. The spirit blends prickly pear, lime, and agave flavours, complemented with notes of vanilla, citrus, and peppercorns. Merchandising tip: Consumers need direction on where to shop for non-alcohol, so creating a dedicated section with clear signage and a diverse assortment of non-alc beer, wine, spirits, and RTD products is paramount.
Added Benefits
Collective Arts Brewing is set to launch their new Botany Adaptogenic Elixirs. They offer consumers a way to enjoy non-alcoholic alternatives crafted from natural ingredients and contain functional options such as Lion’s Mane, Schisandra berries, Vitamin D, and Ginseng are expertly blended to create these functional beverages, inspiring a well-balanced life. Merchandising tip: Utilizing a brand’s Point of Sale (POS) and merchandising tools is a great way to get consumers to engage with not only the brand, but with the category itself.
Good Bubbles
Remedy Kombucha has the effervescence of pop, without the sugar, and flavour complexity of fermentation, without the alcohol. The leading brand recently launched Remedy Kombucha Lemonade and will be launching Remedy Kombucha Passion Fruit, perfect in mocktails to replace the soda or juice with gut healthy, no sugar bubbles. Merchandising tip: Focussing on merchandising multi-packs on the ambient shelf will result in higher dollars versus selling single cans.
The post Raising the Bar appeared first on Western Grocer.
Source: westerngrocer.com