Premium Drinks without the Kick are Becoming Increasingly Popular
Wellness, convenience, and premiumization are the critical factors that cause consumers to increasingly purchase non-alcoholic products. According to the 2023 Nielsen IQ Report, sales of non-alcoholic beverages reached $510 million —a notable rise of $121.2 million, which equates to a robust 31.2% growth from the previous year, marking the most significant dollar growth seen in half a decade. Drizly’s BevA Insights Team echoes this sentiment, reporting a 76% spike in sales of non-alcoholic beers and wines on their platform in January 2023 alone, compared to last year. This is a staggering 152% increase from January 2021, predominantly fueled by members of the Gen Z and Millennial demographics, who are leading the charge towards mindful drinking.
Marcos Salazar, Founder of Adult Non-Alcoholic Beverage Association
Brewing the Adult Non-Alcoholic Beverage Association
We had the pleasure of meeting Marcos Salazar at the final edition of Natural Products Expo East in Philadelphia, and we were intrigued to learn more about his latest endeavor, ANBA (Adult Non-Alcoholic Beverage Association). As a multifaceted social entrepreneur, career coach, community advocate, and business mentor, Marcos is dedicated to fostering significant change and guiding individuals toward making a profound impact. His journey began in hospitality, where his passion for service and crafting memorable experiences took root. These values have driven his career and are fundamental to his current venture to revolutionize the beverage industry, work environments, and business practices.
Today, Marcos operates at the nexus of social influence and consumer patterns, gaining distinctive perspectives on the evolving dynamics of work, commerce, and the non-alcoholic arena.
As the first organization dedicated to adult non-alcoholic beverages, what inspired you to create the Adult Non-Alcoholic Beverage Association in 2021?
In 2019, I started a company called For All Drinks. It was to be an event company in New York City to host non-alcoholic parties and speakeasy karaoke’s. Then COVID hit, so I decided to transition For All Drinks into a media company. I launched the first podcast on non-alcoholic beverages, did many virtual events with all the major brands, and organized giveaways and other marketing initiatives.
Through that process, I was able to familiarize myself with the founders of the leading non-alcoholic beverage companies, and I started to see that there were a lot of other challenges aside from reaching customers, whether they were government or regulatory challenges.
That was really where the idea of the Adult Non-Alcoholic Beverage Association emerged from. I built a nonprofit business plan with my nonprofit background and then sent it to several brands I previously worked with. As a community builder, I knew I could bring everybody together to form the association. I worked with three to four people to build the infrastructure, then recruited an eleven-person board to start the association.
There was a lot of organic growth and exciting innovation, but there needed to be a central resource that could advocate for members and support the category’s growth.
Are there specific codes of ethics brands need to adhere to become a member of ANBA?
Yes, for brands to be accepted, they must sign off on a few things. One is to be respectful, just in general, as a company, to all customers and stakeholders. The second is to be mindful and collaborative with other members; everybody is competing for shelf space and customer attention.
Healthy competition is one of the central values in this amazing industry, where everybody recognizes that we all need to work together to grow the category. The third piece is to ensure that all brands adhere to the highest quality standards when producing the products. We provide many food safety and industry-standard resources to help people produce the highest quality product.
How many members does ANBA currently have in its portfolio?
We have three chapters: the US, Canada, and the UK. We have 90 members in the US and 30 in the UK, and that started this summer, so it’s continuing to grow. Then we have another 45 industry member partners: non-producers, which means service providers, suppliers, and distributors.
What is driving the non-alcoholic beverage sector? Who are the primary consumers?
It’s a confluence of different forces. First and foremost, it’s innovative entrepreneurs. Over the past five years, they have produced new and delicious tasting adult non-alcoholic beverages. Brands have created high-quality beer, wine, spirits, and ready-to-drink cocktails, and now they’re becoming much more available. The second is that there’s been such an emphasis over the past couple of decades on health and wellness and eating mindfully about what we consume from a liquid standpoint. Lastly, there’s a big emphasis on mental health partially being driven by Gen Z and Millennials, who are recognizing that alcohol has a severe negative impact on their physical and mental health. Then you also have boomers and older generations, who are also driving the category, according to a Nielsen report, due to their disposable income. It’s all these kinds of forces coming together at the same time.
According to Global Market Insights, non-alcoholic beverages are expected to grow to $30 billion by 2025; where do you see the most significant category growth?
Beer has been the main driver. It will continue to do so because it’s easy and successful, and the innovation and quality are there. But wine and spirits have been increasing at a greater rate because there’s more diversity of products, and the quality continues to grow. There’s a lot of potential for innovation because people are looking for more bolder and diverse red wines. Others are looking for cocktails and spirits that you can drink. There will be a huge opportunity for growth in those in those segments.
What are your thoughts on establishing pricing for non-alcoholic cocktails/ready-to-drink offerings in bars & retailers? Should they be marketed at the same price point as their alcoholic counterparts?
They will probably be marketed at the same price point or even more expensive. The reason why is it takes much more time, energy, and resources to produce non-alcoholic beverages than their alcoholic counterpart.
There’s a strange perception that the percentage of alcohol equals value and the higher percentage of alcohol, the higher the value. Alcohol is one of the cheapest ingredients for producing these types of beverages. Alcohol is an excellent vehicle for flavor and a great ingredient for killing bacteria, microbes, and many other things.
When you’re working with non-alcoholic beverages, you have to formulate it very highly. If you’re dealcoholizing the product, you end up putting additional ingredients or taking it through a different and extra set of processes that take more time, energy, and money.
ANBA had an impressive presence at Expo East in Philadelphia( Fall 2023). How did you broker this partnership with New Hope Network and the exhibiting brands?
I had been wanting to engage and have a significant presence at trade shows. The categories are too small to have our own trade shows, so how do we connect with existing communities of buyers? How do we scale through partnerships? This was one of New Hope’s major priorities, recognizing that this is the next wave in beverage innovation. Together, we’ve been exchanging many ideas on how we can make these events much more inclusive and ensure that people have a delicious non-alcoholic beverage throughout the conference.
Interestingly, it set the standard for having the first NA Beverage Pavilion at the US trade show. In 2024, we will be at Expo West, Bar & Restaurant Expo, the National Restaurant Association Show, Bar Covent Brooklyn, and Fancy Food Show.
As for the brands present at Expo East, some up-and-coming, new, and innovative brands helped us push the envelope for taste, flavor, and branding.
What resources does ANBA provide to brands and founders?
We’re focused on helping to grow the overall category in the industry. Our advocacy work is partially driven by government affairs, helping members navigate the regulatory environment and advocating for that. We are trying to eventually standardize labeling as well as quality. We also provide a wealth of business resources such as monthly networking and regular business webinars on everything from scaling your business within this category.
We also partner with big data companies and are currently in the process of conducting our own research as well. At the end of January, we will host our first consumer-facing event, which is a Mindful Drinking Fest in D.C., followed by an event in California for Sober October. These are opportunities for members to connect as well as engage with consumers.
With an abundance of non-alcoholic brands across the US & abroad, how did you select your board members?
We had our first board of directors. Starting a trade association is so interesting because usually, they’re decades or one hundred years old. Creating a new one from scratch is always interesting. As a nonprofit, I had to recruit eleven board members to start the association. We wanted to make sure we were diverse on every single level, whether it be company size, different segments of beer, wine, spirits, and ready-to-drink, but also different backgrounds, different ages, and an array of categories. The more diverse people are at the table, the better the outcome.
What is next for ANBA?
We are just a couple years old. We’ve built a solid nonprofit foundation, and the association is on sound footing. We will start taking on much larger projects, some in government affairs, and providing additional resources for members to promote the overall category. Education is vital for us across restaurants, bars, buyers, wholesalers, distributors, retailers, and hospitality. There are so many areas in which non-alcoholic beverages can be a part, and we’re going to start forming more extensive partnerships on those ends as well.
Connect with ANBA
ANBA Website: https://nabeverages.org/
ANBA LinkedIn: https://www.linkedin.com/company/adult-non-alcoholic-beverage-association/
Non-Alcoholic Brands to Watch
At the Natural Products EXPO East in Philadelphia (Fall 2023), the Adult Non-Alcoholic Beverage Association (ANBA) presented eighteen pioneering brands.
Within this impressive array, there were three brands that distinguished themselves as noteworthy for future trends.
Grüvi founders Anika and Niki Sawni
Grüvi
Grüvi Anika and Niki Sawni, the enterprising siblings at the helm of Toronto-based Grüvi, are redefining the non-alcoholic beverage landscape with their award-winning range of craft beers and wines that defy the ordinary. Since its inception in 2019, Anika & Niki have been on a mission to challenge the status quo of the non-alcoholic industry. Their vision? To forge a brand that encapsulates the essence of celebration through a selection of drinks that are as rich in taste as varied, and universally appealing.
Now stocked in over 4,000 locations, Grüvi stands out as the only brand to have clinched gold medals in the non-alcoholic beer and wine categories, a nod to their innovative drive and unyielding dedication to quality.
Anika & Niki state, “We both quickly noticed all the upsides of drinking less, yet it felt difficult to make that transition to a less alcohol-centric lifestyle because we never felt there were alternate options that were consistently appealing. We founded Grüvi to trailblaze a new way to live and socialize with alcohol-free options that could make that transition easier and exciting! As the only brand to offer a wide variety of beer, wine, and sangria, we want people to have an option to enjoy every moment, big and small. With exceptional taste at the heart of our brand, we strive to create an inclusive community that can enjoy beer and wine while valuing their health and well-being.”
Learn More!
PARCH Founders Ila Byrne and Rodolfo Aldana
PARCH
In 2022, two Diageo alumni, Ila Byrne and Rodolfo Aldana, introduced PARCH, a critically acclaimed non-alcoholic agave spirit founded on the belief that every consumer deserves exceptional, complex adult beverages that benefit humanity and the earth. PARCH, drawing inspiration from the Sonoran Desert’s mineral-rich ecosystem, promises a guilt-free indulgence with 100% plant-based, gluten-free, vegan, and sustainably conscious products.
The brand’s two ready-to-drink offerings include Spiced Piñarita. This smoky and piquant cocktail combines luscious pineapple with spicy cayenne, Weber Agave, mole bitters, and hand-selected desert botanicals. While Prickly Paloma showcases the bitter-sweet pairing of earthy Blue Weber Agave, prickly pear cactus fruit, grapefruit, orange bitters, lime juice, floral-tart hibiscus, and desert flora.
Enhancing the drinking experience, each cocktail is infused with functional herbs and adaptogens such as L-Theanine for immune support, American Ginseng to promote relaxation, and Ashwagandha for stress reduction; all thoughtfully crafted to embrace PARCH’s harmonious ethos, “What Grows Together, Goes Together.” With its expansive reach across North America and surging national demand, PARCH has proven its commitment to its vision of a radically inclusive and aspirational new category of adult drinks.
Anticipation is high for their next release as they unveil the Desert Margarita in Spring 2024. The latest creation is a zestful, tangy, tart trio blend of Mexican lime, orange bitters, and mandarin juice, enriched with the raw flavors of organic blue agave, desert botanicals, and tamarind, setting the stage for what’s sure to be another standout in PARCH’s celebrated lineup of non-alcoholic artisanal creations. Shop parch Follow @drinkparch
Seraphim Social Beverage
Seraphim Social Beverages is an award-winning, non-alcoholic, botanical-infused beverage created by Stephanie Schaich Bricken. From humble roots in her New Jersey kitchen, Stephanie’s homegrown blends caught the attention of culinary experts at Drexel University’s Food Lab for an initial taste. The recognition was followed by a partnership with The Food Innovation Center at Rutger’s University to elevate and scale the brands’ operation.
Seraphim’s flagship selections, Pure Blend Cassia and Pure Blend Cacao, each offer a sophisticated alternative combining the delicate complexity of organic berries, restorative herbs, and select botanicals to craft beverages that rival a fine red in depth and sophistication with only 60 calories in a glass. Driven by a passion for exceptional taste, sustainable practices, and unparalleled drinking sophistication, the vegan-friendly Seraphim Social Beverage redefines the craft of conscious consumption.
Stephanie is dedicated to crafting a non-alcoholic beverage that is sophisticated and flavorful and promotes a sense of wellbeing in body, mind, and spirit. “Drinking wine was causing mood shifts; I was snapping at my family, getting headaches, and feeling unproductive the next day. So, I set out to create an alternative. Each blend is free from added sugars, preservatives, artificial flavors, and colors. Additionally, I took great care to support local suppliers by sourcing bottles locally of the lightest weight material, minimizing our carbon footprint in the process.”
Shop Seraphim Social Beverage Follow @seraphimsocialbev
Resources for Spirited Drinking Without Alcohol
Interested in embracing mindful drinking throughout the year? NASM-certified wellness coach and Mindful Mixology author Derek Brown’s Mindful Drinking course discusses the role of alcohol in culture and socialization and its impact on wellbeing. Stay updated with Derek’s insights by subscribing to his newsletter, Positive Damage, where inclusivity at the bar is a priority.
To explore and sample an eclectic selection of non-alcoholic beverages, visit Boisson’s brick-and-mortar locations in NYC, Los Angeles, San Francisco, and Miami, coming soon. Seeking a comprehensive guide to non-alcoholic bars, shops, drinks, and more? Visit Laura Silverman’s Zero Proof Nation Directory.
Discover the journey of two ex-French Laundry sommeliers who quit drinking after having kids, share a passion for non-alcoholic beverages, and now want to help you get the most out of your alcohol-free bar cart, wine rack and beer fridge through their ”All The Bitter Blog.”
Lorena Tapiero is a first generation Colombian-American who has lived and worked in Los Angeles, New York City, and Dubai. Her global experience and perspective gives her a powerful lens to reflect on food, trends, and health and wellness. Lorena is a yoga teacher and yoga therapy practicum student as well as a writer and longtime media professional.