The US Surgeon General’s warning about alcohol being a “well-established, preventable cause of cancer” may be a wake-up call for Americans, but it’s not the end for the beer and spirits industry. Instead, major companies are gearing up to capitalize on the growing trend of non-alcoholic drinks.
According to a Gallup poll, almost half of Americans believe that having one or two drinks a day is bad for their health, with younger adults being more likely to share this sentiment. This shift has led to an increase in demand for non-alcoholic beverages, particularly among younger consumers.
The global non-alcoholic drinks market is expected to grow by $4 billion by 2028, driven by evolving consumer behaviors and the momentum of no-alcohol products. Companies like Molson Coors and Anheuser-Busch InBev are expanding their portfolios with new non-alcoholic drinks, including zero-sugar energy drinks, non-alcoholic beers, and even a popular Australian canned cocktail alternative.
Rival companies are also investing heavily in non-alcoholic products. Diageo, the maker of Ketel One vodka, Tanqueray gin, and Johnnie Walker Scotch whisky, recently acquired Ritual Zero Proof, a top-selling US non-alcoholic spirits brand. Pernod Ricard is launching a non-alcoholic version of its London Dry Gin, while Moët Hennessy has invested in French Bloom, a non-alcoholic sparkling wine.
The trend extends beyond just beer and spirits, with craft breweries cashing in on the non-alcoholic craze. The largest craft brewer making non-alcoholic beers is Athletic Brewing Company, which is now the top-selling beer at Whole Foods.
As consumers continue to reevaluate their relationship with alcohol, companies are responding by offering a wider range of options. With the market expected to grow significantly, Big Alcohol companies are seizing this opportunity to adapt and thrive in the changing landscape.
Source: https://finance.yahoo.com/news/americans-already-ditching-spirits-beer-174240978.html