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Festive and Booze-Free

The Holiday Season Offers Big Opportunity for Non-Alcoholic Sales

By: Courtney Iseman

HOP WTR has found 58% of consumers switch between alcoholic and non-alcoholic beverages even within the same occasion.

From Thanksgiving to New Year’s Day, drink purchases for parties and gifting soar, but in 2024, demand for non-alcoholic alternatives is soaring, too. Retailers and on-premise venues stand to build lasting consumer relationships with intentional alcohol-free inventories.

The rise of non-alcoholic beverages is undeniable and impressive, with sales increasing 32% according to NielsenIQ. With a growing number of consumers showing interest in booze-free options, the holidays are a vital time of year to lean into that trend. For the season’s busy social calendars, providing NA options are now more important than ever.

“We’ve found that 41% of Americans are seeking to reduce their alcohol intake in 2024,” says Jordan Bass, Co-founder and CEO of HOP WTR. “During the holiday season, when spending is at an all-time high, it’s important to cater to all types of consumers, especially those who are constantly on the lookout for new products that fit into their lifestyle choices.”

When planning for the holidays, on-premise venues, as well as off-premise retailers, shouldn’t underestimate just how large the non-alcoholic audience is. The market for non-alcoholic drinks ramps up at the holidays. Chris Furnari, Athletic Brewing Company Senior Communications Manager, points out that anyone hosting holiday gatherings will want to purchase alcohol-free options, alongside alcoholic ones, to cater to all their guests.

There are a myriad of reasons people might not want to imbibe, beyond complete sobriety — Furnari says 80% of Athletic customers also still drink alcohol, and Bass says HOP WTR has found 58% of consumers switch between alcoholic and non-alcoholic beverages even within the same occasion.

“People might want to be able to socialize longer, or they might not want a hangover the next day,” notes Ellie Preslar, Chief Communications Officer of Sierra Nevada Brewing Company. “But still, they want to feel included the festivities.”

It’s with that in mind that non-alcoholic brands put intention into branding and things like cocktail ideas with their beverages. Just because there’s no alcohol doesn’t mean these options don’t fit in seamlessly alongside other party or holiday season favorites.

“Our Trail Pass [non-alcoholic] beers look and taste remarkably similar to traditional beer,” Preslar says. “The can art looks like a typical craft beer offering, and the brews also appear tasty and satisfying when poured into a glass.”

For a spirits option, Seedlip is a nonalcoholic spirit brand with flavors, variety, and branding on par with premium spirits. Festive cocktails, like the Espresso MartiNO made with Seedlip Spice 94, are just as fun without the alcohol. There’s also TÖST, alcohol-free sparkling wines perfect for popping at midnight New Year’s Eve.

Considering the wide range of nonalcoholic offerings and the equally wide range of non-alcoholic consumers, there’s a world of opportunity for retailers as well as restaurants and bars to both make all shoppers and guests feel welcome and boost sales with more options. The first step is to mix inventories up between classics and new offerings. As Bass mentions, non-alcoholic consumers are actively seeking out new things to try. Sobriety or moderation might be new to them, and they’re eager to explore what’s available. Meanwhile, many consumers will keep looking for familiar favorites, too.

Off-premise retailers can effectively market their inventories with dedicated displays. Kenny Patel, manager of The Beer & Beverage Shoppe in Lancaster, Pennsylvania, says he ensures all his non-alcoholic offerings are together, because shoppers shouldn’t have to pick something up and worry about whether it has alcohol or not. They should know by shopping in a certain section, everything they’re curious about is booze-free.

TÖST alcohol-free sparkling wines are perfect for popping at midnight on New Year’s Eve.

“Creating a shelf set with nonalcoholic spirits, beer, and RTDs, and co-merchandising that space with premium mixers, gives customers a better understanding of what options are available,” says Alyssa Mason, Business Development Manager for Nonalcoholic Beverages at Diageo, Seedlip’s parent company.

It’s also important for retailers to advertise that they have this selection.

“Sharing product availability and brand assets on social media can also drive awareness and trial,” says Mason. Stores can think about spotlighting non-alcoholic drinks the same way they would with alcohol, messaging around which reaches a fever pitch during the holidays. Dedicated posts about alcohol-free options, classics to find, new brands to discover, and mocktail ideas can cut through the noise to reach interested consumers.

“On-premise venues can do their own spotlighting with not just social media posts but with non-alcoholic options prominently displayed on menus. In the past, alcohol-free beverages have appeared at the bottom or back of menus, communicating that they were an afterthought. Highlighting them in their own menu section alerts guests that these are elevated non-alcoholic options,” Mason explains.

Perhaps most important is that retailer and restaurant staff be prepared to answer any questions consumers may have about non-alcoholic beverages. These questions may indeed be more numerous, as new shoppers explore the segment, and as more people start buying these options. Product education is vital to The Beer & Beverage Shoppe team, according to Patel.

Tasting and researching new products is part of the store’s employee training. “If we don’t know what we’re selling, it’s really hard for the customer to put their finger on something and guess if they’ll like it,” explains Patel. “We need to be able to tell them, ‘This is a good product.’ We need to have tried it. We need to instill them with confidence.”

Anyone hosting holiday gatherings will want to purchase alcohol-free options, alongside alcoholic ones, to cater to all of their guests.

Being prepared with non-alcoholic options for the year’s busiest social season sets retailers up for success. Patel sees the difference in purchases, saying that during the rest of the year, about 80% of his sales are alcoholic, 20% being non-alcoholic. But around the holidays, that becomes more like 50-50.

There’s significant potential for consumer engagement during the holidays, and that is especially primed for building lasting relationships when people are reevaluating their relationships with alcohol and looking for varying options for different occasions. A favorable holiday purchase tells a consumer they can trust a store for staples and future discoveries. The holidays, after all, lead right into Dry January. Per Forbes, one in five adults said they participated in the alcohol-free month in 2022, up 13% from 2021.

A good non-alcoholic gameplan for the holidays is a good gameplan for Dry January and all the various individual consumer goals for the rest of the year

About the Author: Courtney Iseman is a Brooklyn-based freelance writer covering craft beer and spirits for Food & Wine, Craft Beer & Brewing, Brewing Industry Guide, PUNCH, Inside Hook, VinePair, Thrillist, Wine Enthusiast, and more.

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