The alcohol-free category is moving from niche to mainstream. Consumers are cutting back on alcohol; and they’re more receptive to the idea of social occasions without an alcoholic drink.
And the idea of an alcohol-free gin, wine or beer no longer provokes ridicule or disdain: these products are serious contenders on the market.
But consumers haven’t yet decided which brands will be their brands.
And that’s what will be big moving forward.
Finding a favorite brand
Take some of the biggest, booming categories in the beverage market today and it’s about brands. People aren’t looking for a cola to put in their shopping trolley: they’re looking for Coca-Cola or Pepsi.
They’re not seeking out gut health sodas; they’re looking for Olipop and Poppi. They’re not looking for a sparkling water, they want La Croix or Spindrift.
But the alcohol-free category isn’t there yet. Consumers are still discovering the category, learning about it, deciding how they feel. Many consumers are curious about alcohol-free spirits, but they don’t have much guidance on which one to try.
“In many cases, the consumer is still looking for the brand for them,” says Damian McKinney, CEO of alcohol-free company DioniLife.
“There is brand loyalty for those who have done a better job on the quality and done work on the branding: they are definitely doing well. You can see that in the UK with Lucky Saint and in the US with Athletic.
“These brands have got taste better than most; and branding better than most.
“But there are a lot of people who are still promiscuous, and they like choice.”
So how can great alcohol-free drinks become great alcohol-free brands?
Step 1: Brands have to taste great
Let’s be honest: there’s still a lot of people who aren’t yet convinced by the alcohol-free category.
So the absolute fundamental is that products must taste good. It’s the cornerstone of any brand that wants to build loyal fans who’ll return again and again.
“Taste is still the number one key to winning in this category,” said Lisa King, founder of canned cocktail Free AF. “Most people have had a bad experience with alcohol-free products at some stage, so we have to overcome that barrier.”
As more and more products enter the market, consumers will be increasingly discerning and will quickly abandon products that don’t deliver on taste.
Step 2: ‘Sips to lips’
One a brand has a great product, it needs to get out to consumers and encourage trial.
“We want to be the first brand that people try,” said David Gimpelsen, CEO. “Just like any category, there are good products and bad products. We don’t want people to enter the category and taste a product that isn’t good.”
But he acknowledges that getting out to consumers is a big task, particularly for smaller brands.
“Getting ‘liquor to lips’ is not inexpensive,” he said. “And trying to find unique ways to get our product in front of people is the ultimate challenge for our marketing and sales team.”
In the on-trade, it’s important to educate bartenders to make sure they understand the product and how it should be served (as Smiling Wolf and Crossip attest).
In retail, programs or clubs can be great ways to help people explore the alcohol-free category. Boisson, for example, has recently launched its non-alcoholic wine club with Andre Hueston Mack: the sommelier takes members through his top picks in alcohol-free wine.
It’s not just about helping people explore the best in alcohol-free wines: it’s also about how to serve them and pair them for the best experience (a warm, poorly served drink can be the death-knell of even the best alcohol-free beer; while many alcohol-free red wines should actually be served considerably below room temperature).
Step 3: Social media
Social media is a key strategy of any brand to get on the radar of Gen Z and Millennials: and that’s equally true in alcohol-free.
A bit of celeb power always comes in handy: Lewis Hamilton’s Almave has a cool 161K followers on Instagram.
For many brands, success on social media is about a bit of fun and creating a community of like-minded people: as far away from alcohol-free’s traditional image as being a boring, inferior product as possible.
UK alcohol-free beer, Days Brewing, for example, has made a name for itself through its cheeky TikTok videos and witty marketing.
“Brands should also view social media not only as an awareness channel, but increasingly as a core driver of conversion,” says Michel Alon, CEO of advertising experts Verve.
“Because the non-alcoholic category lacks long-established favorites, it is especially important for emerging brands to capture attention in social environments.
“Building a distinctive and compelling brand narrative early is critical to establishing notoriety and cutting through market noise.”
Step 4: Explore new formats to find new fans
Lyre’s core portfolio is its alcohol-free spirits. But in 2021 is also added canned RTD cocktails. Part of this, of course, is about tapping into the booming RTD market. But it’s also about providing the perfect entry point into the brand.
“For trial, RTD’s are a great entry point,” says Gimpelson. “They’re at an accessible price point, and they can just grab it and go.”
But it’s about more than that. Each RTD is made using the brand’s core non-alcoholic spirit. Once the consumer has seen the brand’s potential in a perfectly served RTD cocktail, they’re more likely to explore the core range.
Big brand power
Big brands - think Heineken 0.0, Carlsberg 0.0, Guinness 0.0, Tanqueray 0.0, Corona Cero to name a few - of course have a natural advantage when it comes to brand recognizion, thanks to their flagship alcoholic counterparts.
And big brands like these provide a great entry point to consumers, as they come with the credibility of their alcoholic counterpart and visibility and accessibility of huge marketing and distribution budgets.
But that doesn't mean they'll automatically dominate the category. Consumers want to explore new brands and find what feels like a good match for them.
Step 5: Building a community
Most alcohol-free brands champion themselves as the hero for a healthier lifestyle. It’s a noble and valid cause and yes, an important way of positioning a brand to appeal to Gen Z, Millennials and the wider audience.
The problem is, the same messaging is used by every single brand.
The most successful brands in alcohol-free are ones that take better-for-you as a given and move beyond that.
Athletic Brewing has successfully built up its brand around active lifestyles and outdoor pursuits: creating a community of like-minded fans as part of that.
As with any other beverage brand, building a community of like-minded consumers helps keep marketing targeted and relevant. And what’s particularly important in alcohol-free (where retail listings still rely on retailers adopting the category at scale) is to build up the D2C channel.
Brands can also focus emotional connection they can offer consumers and what they offer to be distinctive. That might be a sophisticated, adult edge (think Aplos, Bax Botanics, Wild Idol); something modern or disruptive (think Hiyo or Kin Euphorics); or those with a more irreverent edge (Brewdog Punk AF).
Above all, it’s about creating a world people want to be part of. That’s never going to be a world of abstinence or diets, but a place of hope and positivity.
