As the festive season approaches, the beverage industry anticipates growing sales as consumers stock up with alcohol. However, producers are increasingly responding to consumer demands for zero percent alcohol options as Gen Z leads the way in the ‘moderate drinking” space.
Younger generations still demand full flavours but with less ABV as health priorities overtake the levels of alcohol consumption often associated with previous generations. As the desire for low and no-alcohol opens up, industry is taking note and investing in products aimed at consumers keen to celebrate on their own terms.
Some of the biggest players in the industry are making moves into the zero percent market.
Earlier this month, Keurig Dr Pepper, the beverage conglomerate that owns 7UP, Snapple and zero percent alcohol cocktail manufacturers Atypique, made a minority share investment into the non-alcoholic brewery, Athletic Brewing. This purchase marks an expansion of Keurig Dr Pepper and the broader beverage industry’s increasing interest in low- and no-percent alcohol.
Tapped Out
A growing number of drinkers are reducing their alcohol intake, largely because they are discovering the harmful side effects of consuming alcohol too often. A recent Gallup poll found that 71 percent of Americans believe alcohol negatively impacts them.
Christmas is still a lucrative period for drinks manufacturers then, although demand has shifted from traditional seasonal drinks to flavourful non-alcoholic offerings. NPD aimed at developing this market is proving effective.
Growing Demand
Keurig Dr Pepper is backing up its direction into the zero percent market with an understanding that consumers still want to drink, just in moderation.
Keurig Dr Pepper executive chairman Bob Gamgor confirmed the company’s direction.
“Our investment reflects our interest and ability to move into exciting white spaces, including in the blurring of the alcoholic and non-alcoholic categories,” he said.
“We look forward to partnering with the Athletic Brewing team to help them scale the business.”
Generation Zero
Recent data and research from Innova Market Insights support Keurig Dr Pepper’s analysis. The numbers show underscore how Gen Z is pushing the increasing sales of zero percent beverages.
The market researcher highlighted the potential of this space, noting the especially high number of consumers demanding non-alcoholic options. It also notes how this growing market still presents significant opportunities as consumers demand full-flavored beverages without the alcoholic effect.
There has been increasing NPD within the low and no-alcohol sphere, including Kerry releasing a line of premium zero-percent botanicals for the upscale market of the teetotal crowd, hoping to claim their own stake within the expanding zero-percent space.
