Non-alcoholic beer, wine and spirits on the rise as demand grows

With the vacation season in full swing and “Dry January” across the nook, Canadians who don’t drink alcohol or need to reduce could discover extra choices on menus and retailer cabinets.

Beer giants are launching non-alcoholic brews, specialty producers are creating modern options to spirits and people within the business say it’s turning into extra socially acceptable to be “sober curious” — a time period used to explain individuals dipping their toes within the non-alcoholic waters. 

“Ten years ago, you would go into a party with a non-alcoholic beer, and people would ask you if you’re pregnant or sick,” stated Nicolas Gagnon-Oosterwaal, president and co-founder of Montreal-based brewery Sober Carpenter.

“But now … it’s completely the other way around.”

Gagnon-Oosterwaal stated similar to public notion, the non-alcoholic beverage business has come a great distance, however there’s nonetheless extra development to come back. 

Global Market Insights estimates that worldwide, the non-alcoholic beer market was price greater than US$22 billion in 2022 and might be price virtually double that in a decade.

“What occurred for craft beer within the final 5, 10 years, I feel will occur within the subsequent 5, 10 years for non-alcoholic (drinks),” Gagnon-Oosterwaal stated.

Non-alcoholic beer has been round since medieval occasions and was promoted throughout Prohibition. And don’t neglect the Shirley Temple, an alcohol-free cocktail invented virtually 100 years in the past. But firms have lengthy struggled to make a non-alcoholic beer that was extra than simply drinkable.

German-based brewery Clausthaler calls this the “holy grail of non-alcoholic beer,” and so they did one thing totally different to attempt to obtain it: as a substitute of eradicating the alcohol from beer, they discovered a method to halt fermentation earlier than the alcohol developed. 

More than 4 a long time after Clausthaler launched its product in 1979, the non-alcoholic holy grail hasn’t simply been discovered — it’s in all places. 

There are non-alcoholic bitter beers, stouts and IPAs. There are ciders, and there are pink, white and rose wines. There are additionally non-alcoholic spirits, which mimic the style of rum, gin and even absinthe. (Many non-alcoholic merchandise truly include a tiny quantity of alcohol — 0.5 per cent or much less, or across the similar as kombucha, whereas others include zero per cent.)

Younger generations driving development in non-alcoholic drinks

There are many explanation why somebody may drink much less or in no way. For individuals coping with alcohol habit, typically sobriety is the healthiest selection. Some religions prohibit consuming alcohol. 

Alcohol additionally has unfavourable well being results. Some individuals have an alcohol intolerance or allergy and lots of frequent medicine work together badly with alcohol. 

And, lately, extra persons are taking part in “Dry January,” the place they provide up alcohol for the primary month of the 12 months. 

Joel Gregoire, affiliate director for food and drinks at market analysis firm Mintel, stated youthful generations seem like driving the expansion in non-alcoholic drinks, noting that many customers shopping for these drinks aren’t avoiding alcohol solely, however chopping down. 

In a 2021 survey by Statistics Canada, round one in 5 Canadians stated they’ve been consuming lower than they did pre-pandemic, and amongst these aged 15 to 29, one third had decreased their consumption.

There’s a social aspect to alcohol that makes it tough for a lot of to interchange, stated Gregoire. That’s why many customers are drawn to non-alcoholic variations of issues like beer or wine, as a substitute of merely ordering a Pepsi. 

“For those who just are choosing not to drink for whatever reason … it still allows them to have maybe more of a premium or enjoyable experience.”

The Liquor Control Board of Ontario began stocking non-alcoholic drinks in 2018, and right this moment carries 16 totally different merchandise, together with beer, wine, a spirit and a blended drink. It’s launching 5 extra wines and two extra beers subsequent 12 months, and says gross sales of those merchandise have grown 20 per cent previously 12 months. 

Sales have additionally been rising exponentially for Sober Carpenter since launching in 2019. 

“When we began to speak to retailers 4 years in the past about this, individuals have been saying ‘why do I want this?’” Gagnon-Oosterwaal stated. 

As he watched the craft beer motion develop through the years, Gagnon-Oosterwaal observed non-alcoholic beer wasn’t getting the identical therapy, prompting him to create Sober Carpenter. 

Now, utilizing the arrested-fermentation model of brewing, Sober Carpenter cans are offered in shops throughout Canada and the world.

Non-alcoholic beer gross sales volumes rising sooner than most alcohol classes

Beer Canada estimates that non-alcoholic beer gross sales volumes are rising far sooner than most alcohol classes, at 22 to 25 per cent. Labatt Breweries of Canada, house to manufacturers like Budweiser, Corona and Mill Street, stated not solely are gross sales volumes rising, however revenues are too as extra premium and craft manufacturers hit the market. 

Beer is by far the most important class in non-alcoholic drinks, with wine a distant second. 

Spirits, in the meantime, are a a lot newer and smaller class, stated Bob Huitema, who launched Sobrii in 2019.

Huitema, who obtained a deal on “Dragon’s Den” final 12 months, began growing his line of non-alcoholic spirits in 2017 as a result of he cherished cocktails, however hated hangovers. 

He stated different markets, such because the U.Ok., are additional forward than Canada in relation to non-alcoholic spirits, which might make the business irritating at occasions, however it additionally means there’s untapped alternative on the market. 

Most Canadians who tried Sobrii merchandise at a current exhibition didn’t even know non-alcoholic spirits existed, Huitema stated. 

Non-alcoholic drinks additionally typically price simply as a lot as their alcoholic counterparts, as a result of they’re simply as sophisticated to make. 

“I might even argue that you just might need to nail the flavour extra, as a result of the individual consuming it isn’t going to get buzzed,” Gregoire stated. 

The early days of non-alcoholic beer left a stigma of sub-par style, however know-how has modified that, stated Labatt’s Brian Kuhn, vice-president of Beyond Beer, in an electronic mail.

Beer Canada stated brewers are making vital investments, with new strategies of manufacturing serving to make potential a greater diversity of non-alcoholic beers that don’t sacrifice on style. 

And similar to Clausthaler within the Nineteen Seventies, firms are nonetheless in search of new methods to make these drinks.

At Sober Carpenter, the brewery discovered a method to make non-alcoholic cider, and has began doing smaller batches of limited-edition specialty beers alongside their traditional choices. 

Gagnon-Oosterwaal doesn’t see non-alcoholic drinks as a passing fad. Like meat options, he thinks the non-alcoholic drink business will proceed to develop and enhance. 

“I think that the trend of making healthier decisions, cutting out alcohol, is (here) to stay.”

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