Mock the Toast | 09.28.2023

Gen Z is sober and lonely | Pernod Ricard + Boisson | Sober October cometh

Mock the Toast | everything zero to low-alcohol.

Mixed Things

Industry

Heineken aims for non-alc beer to reach 10% of global beer sales, currently at 2%, while Carlsberg reports a 1% decline in alc-free sales, with regional variations. Five-fold growth needed for the non-alc beer market to reach normalization.

Aiming to put 25% of its brand investment into the alc-free category, Heineken’s global innovation manager, Karlijn van Ruiten said, ‘I looked at the UK data and it struck me that only 8% of English young and legal drinking age consumers drink at least once per week. This was 50%, ten years ago. We need to face the fact that alcohol consumption is dropping.’(just-drinks.com)

Guinness' debut in the non-alc market with Guinness 0 preserves the brand's iconic look and flavor, focusing on attracting consumers aged 39 and under to provide an inclusive drinking experience, riding the wave of the rapidly expanding non-alc beer segment projected to reach US$43.6B by 2023, driven by younger adults embracing healthier lifestyles. (the-message.ca)

Pernod Ricard’s Convivialité Ventures invests $5 million in US non-alc retailer Boisson, reflecting the rising popularity of no/low alcoholic beverages, with the global market surpassing $11 billion in value; Boisson, founded in 2021, plans to expand its retail presence, while appointing Sheetal Aiyer as CEO to lead the brand's growth. (forbes.com)

With food stocks associated with snacks and junk food facing a decline, Constellation Brands (Corona, Modelo, Pacifico) may have to strategize to address potential demand fluctuations caused by the rise of weight loss medications, similar to Ozempic, that can curb alcohol consumption. The usage of these drugs has surged by an astonishing 300% in less than three years. (cnbc.com ; ft.com)

Revolution Brewing launches its first non-alc offering-- a sparkling hop water called Super Zero. (brewbound.com)

High Rise Beverage Company is now the official non-alc beverage partner of Sony Music Nashville. (bevnet.com)

It's still unclear when the U.S. FDA will team up with Congress to establish a uniform regulatory pathway for CBD-infused products, a development eagerly awaited by both the beverage industry and consumers seeking consistent guidelines for these products. Hold up is impeding investment in this space. (just-drinks.com)

Molson Coors is rebranding Blue Moon LightSky as Blue Moon Light in a 2024 refresh, aligning the brand's family of products and preparing for the launch of Blue Moon Non-Alcoholic Belgian White in December 2023, with updated packaging arriving in February 2024. (mediapost.com)

The UK government is considering raising the alcohol threshold for labeling drinks as "alcohol-free" to 0.5%, currently 0.05%, to promote non-alc products, garnering industry support but sparking concerns for local brewers. (thegrocer.co.uk)

Podcasts

Pondering why the non-alc category appears to produce numerous offerings that don't seem to have a clear target audience beyond style publications and websites. (vinepair.com)

TÖST CEO Brooks Addington discusses the origins of TÖST, the brand's pricing strategy, retail approach, competition in the market, the partnership with Constellation Brands, and the importance of prudent marketing spending. (tasteradio.com)

Drink journalists explore the trend of younger generations, including Gen Z and Millennials, drinking less alcohol or abstaining from it altogether. (podcasters.spotify.com)

Health

Number of Scots receiving alcohol abuse treatment drops by 40%, prompting calls for a legal right to treatment. Scotland saw 1,276 deaths due to alcohol misuse in the previous year, the highest number in 14 years. (thetimes.co.uk)

The economic cost of alcohol-associated liver disease (ALD) in the United States is projected to reach $880 billion by 2040, driven by increased alcohol consumption, particularly among females. (journals.lww.com)

Safety Shot, launching in Q4 2023 and targeting a growing market for hangover cure products, aims to reduce the negative impacts of binge drinking by reducing blood alcohol content and improving cognition within an hour, potentially lowering alcohol-related ER visits in the US, which reached up to 1.03 million annually from 2018 to 2020.(forbes.com)

Culture

Yearning for connection: Gen Z in the United States are spending more on gym memberships, social clubs, and art classes to combat loneliness, as over a third of those aged 18 to 25 reported feeling lonely frequently, driving increased investment in social activities. (businessinsider.com)

Finding connection: Natural High, an alcohol- and substance-free dance party movement, is gaining popularity in Los Angeles as more Gen Z individuals prioritize sobriety and wellness. This trend reflects a broader movement toward self-care, mindfulness, and intentional social connections, offering an alternative to traditional nightlife culture. (latimes.com)

Enjoying Nashville without drinking. (thrillist.com)

Functional mocktails are getting more popular because they offer the same flavor complexity as cocktails and incorporate health-boosting ingredients. (bhg.com)

Profile on BuzzCutt, an app that provides a map of nearby bars, restaurants, convenience stores, and grocery stores offering no-alc options, and its founders. (oregonlive.com)

Study (UK): 25% of wedding guests opt for alcohol-free drinks. (newfoodmagazine.com)

Sober October: Non-alc drink options, highlighting flavorful alternatives, including mocktails, fermented spirits, sparkling teas, alcohol-free wine, and aperitifs from brands like Black Lines, High Point, REAL, Wednesday's Domaine, JING, Everleaf, French Bloom, Botivo, L.A Brewery, and Crossip. (londontheinside.com)

From the Top-shelf

The concerning prevalence of loneliness among Gen Z has created a compelling opportunity for non-alcoholic brands. With over a third of Americans aged 18 to 25 frequently experiencing loneliness, young adults are actively seeking solutions to combat their isolation. They're willing to invest significant sums in gym memberships, social clubs, and art classes, prioritizing these social activities over personal expenses. This shift in spending habits demonstrates that Gen Z is on the search for meaningful human interactions.

Interestingly, as this desire for connection grows, the younger generation is also drinking less alcohol. Gen Z is reshaping the market by prioritizing sobriety and mindful socialization. Substance-free events like Natural High, where participants enjoy music and dancing without alcohol, are thriving. Heineken's success with Heineken 0.0 underscores the potential for non-alcoholic brands to cater to Gen Z's desire for social experiences without alcohol. With loneliness gaining, non-alcoholic brands have a unique opportunity to provide Gen Z with the connections they crave while promoting healthier lifestyles, ultimately creating a more empathetic and connected generation.

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