Shanken News Daily: Exclusive news and research on the wine, spirits and beer business Exclusive news and research on the wine, spirits and beer business January 16, 2022 NEWS HELP EVENTS Impact Databank Reports Cannabis Edition PUBLICATIONS SUBSCRIBE to SND Low- And No-Alcohol Category Gets A Boost From Consumer Wellness Trends October 11, 2021 American drinkers continue to crave what they perceive as health- and wellness-oriented products. Non-alcoholic wines continue to thrive, soaring 45.5% in dollar terms in the 37 weeks ending September 18 in NielsenIQ channels. Fre non-alcoholic wine from Trinchero Family Estates has been around for decades and is the market’s biggest seller—it depleted 253,000 9-liter cases last year (up 13.5%), according to Impact Databank. More recently, Pacific Highway Wines launched Giesen 0% Sauvignon Blanc, and expects to sell nearly 15,000 cases this year—to be followed by other non-alcoholic Giesen offerings: Rosé, Red Blend and Pinot Gris. Non-alcoholic spirits are trending even faster, and the major industry players have embraced the growing demand for alcohol-free cocktails. The world’s largest drinks company has been actively involved in the space as Diageo-backed Distill Ventures acquired majority control of alcohol-free spirit Seedlip two years ago, and also bought into Ritual Beverage Co. early last year. Ritual Zero Proof offers gin, whiskey, Tequila, and rum alternatives in the brand’s non-alcohol portfolio, and retails for $27-$29 a 750-ml. bottle. Seedlip is positioned even higher at $32. Most recently, Demeter & Co., led by Jim Clerkin and Jeff Menashe, announced its entry into the segment with the U.S. launch of CleanCo, whose gin, vodka, rum, and Tequila alternatives ($30 a 700-ml.) are projected to sell 50,000 cases across the U.K. and U.S. this year. Last year, dollar sales of de-alcoholized spirits accelerated to 178% growth in NielsenIQ channels, and the momentum has been sustained in 2021, as they rose 101% in the 35 weeks ending September 4, to a retail value of $2.27 million. And though they represent less than one-tenth of 1% share of the total spirits industry—according to Impact Databank—alcohol-free alternatives will continue to comprise a fast-growing percentage of the overall market into the foreseeable future. On the beer side, besides seltzers, only one other malt-based beverage segment is showing double-digit growth—non-alcoholic beer—with gains of 21.3% in volume terms and 25.9% by dollar value for the year-to-date period ending September 5, according to IRI. Leading the way is Heineken 0.0, which is the largest-selling non-alcoholic brew in the U.S.—according to Impact Databank—followed by Anheuser-Busch InBev’s Budweiser Zero. Heineken 0.0 earned an Impact “Hot Brand” award after more than doubling to just under 1.8 million cases last year.—Juan Banaag De-Alcoholized Drinks – Off-Premise Trends (millions of dollars) Type 2020 Retail Value Percent Change vs 2019 2021 YTD Retail Value YTD Percent Change Beer1 $188.2 37.7% $163.4 25.9% Wine2 $32.0 25.3% $28.5 45.5% Spirits3 $1.8 178.1% $2.3 100.9% Total $222.0 36.3% $194.2 29.0% 1 Year-to-date ending 9/5/21 in IRI channels 2 37 weeks ending 9/18/21 in NielsenIQ channels 3 35 weeks ending 9/4/21 in NielsenIQ channels Source: IRI, NielsenIQ and IMPACT DATABANK © 2021 Subscribe to Shanken News Daily’s Email Newsletter, delivered to your inbox each morning. Tagged : Diageo, Distill Ventures, Fre, Giesen 0%, Pacific Highway, Ritual Zero Proof, Seedlip, Trinchero Get your first look at 2020 data and 2021 projections for the wine and spirits industries. Order your 2021 Impact Databank Reports. Click here. 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