Younger generations are not a lost cause when it comes to the alcohol category. Far from it.
Yes, Gen-Z and Millennials have been steadily reframing their attitudes towards drinking. They’re reducing their alcohol consumption and paying much greater attention to the impact of alcohol on their physical and mental wellbeing. But they are not going completely sober and falling out of the category… despite what the media says. They’re just picking and choosing their drinking moments more consciously and looking for alternative or lower-ABV options when they do.
These alternatives make drinking feel less all-consuming. Less consequential. Less overwhelming! Drinking in this way becomes a complementary addition to a social moment – not a pillar of fun – where moderation and mindfulness are the name of the game.
But the important thing to understand is that no- or low-ABV options still constitute a treat for drinkers. Gone are the days of seeing these beverages as watered-down replacements. Brands leading the charge have created products with diverse and distinct flavors, that don’t just replicate the flavors of alcohol already out there. Instead, they recreate them in unique and ownable ways so moments of drinking don’t feel restrictive; they feel just as enjoyable and experiential as ever.
Let’s take a look at some of the brands redefining this space.
Quarter
Quarter asked themselves, “why are spirits so goddamn strong?”. They realized it was either all or nothing. So they decided to shake up the spirits industry and create the first quarter spirits brand.
Enter their Quarter London Dry Gin, that delivers all the flavor and experience you would expect from a full-strength Gin… just with 12% ABV. Swiftly followed by their Quarter Blacno Agave, which also boasts a stunning 12% ABV… but with all the fun and fiesta of a full-strength agave sprint.
The brand is fundamentally founded on the belief that traditional spirits where created for a different time, and that Quarter is a manifestation of today’s needs. Essentially, it proves that spirits don’t have to be full-strength to taste delicious and give you a little bit of a buzz.
And that’s not the only good thing about Quarter. They also donate a 1/4 of profits from each bottle to a different charity in each Quarter of the year. This means, they can spread the love to those that need it most, when they need it most. Oh, and they also donate 1% of their annual sales to the ‘1% for the Planet’ organization, a non-profit that fights to tackle climate change. Enough said.
The Uncommon
When it comes to wine, young drinkers aren’t really fussed by the tradition or pomposity of the category – they want convenience, they want quality, and they want lightness so they’re not sent sideways after an hour. But when the Founders of The Uncommon looked at the market, they realized there was nothing that appealed to younger drinkers. Nothing outside of heavy, alcoholic glass bottles that talks to a much older generation.
So they asked themselves, “Why not create a brand that offers really high quality wine. An English wine. One that supports the UK wine industry and also appeals to a drinker focused on sustainability and convenience?”
Enter The Uncommon. A range of single-serve canned wine spritzers made from locally sourced English grapes. A wine that helps people control and keep track of what they’re drinking without compromising on quality. A brand that is proudly English and proudly quirky. And proud of minimizing their impact on the environment, too. All the packaging is made from recycled corks; the cans are recycled aluminum, and everything is sourced from thirty miles from where we are based in South East London. What a winner.
Pentire Spirits
After being lauded by Gordon Ramsay as “the most delicious non-alcoholic drink”, we took note. This plant-based, botanical, non-alcoholic spirit from Cornwall in the UK avoids the most common pitfalls by not pretending to be anything like traditional gin. The spirit has been created to capture the smell, sound, flavor, and feeling of being by the ocean and is a thoroughly modern, non-alcoholic spirit option. In the words of the Founder, “We’re not telling people they shouldn’t drink alcohol – we’re just offering them a pure and delicious drink its in own right.”
And that’s exactly what the Pentire Adrift is. Made by distilling unique plants native to the coastline of Cornwall, it has Rock Samphire, Sage, Lemon Citrus, and Cornish Sea Salt notes. And should be drunk with tonic. By the sea.
The brand’s local roots are deeply embedded into everything they do. With a vision to bottle the experience of surfing and foraging in hedgerows, they’ve cleverly woven their story into every piece of marketing. Their socials are filled with imagery of the non-alcoholic spirit being enjoyed on the beach, and sustainability is also a pivotal part of their business strategy. They’re B-corp certified, have plastic-free packaging, and only use waterless printing. That’s what raising the bar of environmental standards looks like for brands, and we’re all over it.
What’s interesting about all these brands is they’re not framing themselves as alternatives or trying to retrofit themselves into a stale category. Note that none of them actually use the words “no” or “low” to describe their products. That would sound too negative, implying you as the consumer were missing out on something by drinking them. The words would fail to communicate how sophisticated, how balanced, how treat-like each drink really is.
By putting Gen-Z and Millennial mindsets at their core, these brands really are redefining the alcohol space. And it’s not just about signaling a commitment to wellbeing, mental health, and quality over quantity as these things exist today; it’s about actively participating in these priorities and driving them forward.
All this to say… brands need to play a part in shaping the development of values; they need to actually put the work in to create things that deepen and improve the richness of the no- & low- alc space. The ones who do so will be best equipped for success, especially as younger people replace those aging out.
Opportunities For Brands
Opportunities in premiumization: Much of the growth of low and no-alcohol beverages has come at the expense of waters or soft drinks, providing incremental growth. Alcohol brands should leverage this opportunity by using their biggest names to push the move towards “premiumization” even more, or outsized growth among items with higher price points.
Opportunities outside the alcohol world: The change in drinking preferences is obviously forcing brands to “defend” traditional drinking occasions through non-alcoholic options… but the trend also provides brands with the opportunity to “attack” by expanding into occasions that aren’t traditionally owned by alcohol brands.
Opportunities in collaborations and partnerships: Collaborating with other brands, wellness influencers, or organizations focused on health and wellness can help traditional alcohol brands gain visibility and credibility in the low- and no-alcohol market space. Partnerships can also facilitate access to new distribution channels and access to wider consumer segments.
Is your alc-bev brand struggling to connect authentically with this new class of abstainers and mindful drinkers? We’d love to help.
Written By:
Amber Williams
Amber has been known to hang out in cold baths reading trashy novels and nibbling on Cadbury Chocolate fingers, bouncing her insights off of her veritable legion of rubber ducks. She was featured in The Evening Standard.
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