#nonalc | KRG Hospitality

November 18, 2022by David Klemt David Klemt No Comments

Is There Demand for Non-alcohol?

As the Holidays Approach, is There Demand for Non-alcohol?

by David Klemt

There’s no denying that non-alcohol is a growing beverage category, but does the data support the hype and operator consideration?

A report by behavioral research firm Veylinx offers compelling insight into non-alcohol and consumers.

By now, there’s really no excuse for failing to give non-alc serious consideration. When planning menus, operators should treat non-alc as much more than an afterthought.

Admitting fully that I’m repeating myself, giving alcohol-free beverages the same attention as their full-proof counterparts is crucial. Doing so is smart business; non-alc is capable of driving traffic and revenue.

And then there’s the guest experience element of the non-alc equation. Hospitality is about service, about ensuring every guest is comfortable. Giving guests who are abstaining from alcohol consumption a different experience than others isn’t hospitality—it’s alienation. Not only is that the antithesis of hospitality, it’s bad business.

Reviewing Veylinx data shows that non-alc is worthy of operators’ time and consideration. In my opinion, it’s even more important that non-alc menus and offerings be dialed in now. After all, the end-of-year holidays on our doorsteps.

The infamous Busiest Bar Night of the Year is nearly here. From November 23 through New Year’s Eve, people will be meeting up with family and friends. Many will also be seeking an escape from the stress of those gathering and the holidays.

Non-alcohol by the Numbers

One of the most important points made by Veylinx is this: Abstinence from alcohol isn’t limited to “social media” events like Dry January and Sober October.

Rather, consumers are choosing to abstain from alcohol throughout the year for myriad reasons. Specifically, Veylinx data reveals that more than 75 percent of Americans have abstained from alcohol consumption at some point for at least one moment.

Further, 46 percent of Americans plan to reduce their consumption of alcohol “right now.” As in, the holidays may be upon us but they’re actively working on a plan to drink less, not more.

Two major factors motivating this behavioral change are mental well-being and physical health. In service of those factors, more than half of LDA drinkers in America plan to replace beverage alcohol with non-alc beverages.

Interestingly, Veylinx finds that these consumers will pay more for non-alc alternatives in comparison to the general population.

Drilling down further, this shift in consumer behavior appears to be driven by a handful of consumer types:

21- to 35-year-old consumers;
“light” drinkers; and
consumers who have set aside alcohol consumption for one month or more.

Speaking of the first group, demand for RTDs is 48 percent greater in comparison to those aged 35 or older. Add CBD to RTD and the demand among the 21 to 35 cohort grows by 18 percent.

However, not all non-alc growth comes from the 21-to-35 group. Non-alc beverages with mood boosters see an increase in demand from the 35-plus group of 29 percent.

In short, if an operator is ignoring the non-alc consumer, they’re harming their own business and reputation. Alcohol-free RTDs, cocktails, beer, and wine are growing.

Savvy operators will leverage that growth.

Image: Helena Yankovska via Unsplash

September 14, 2022by David Klemt David Klemt No Comments

3 Bar Hacks Episodes for Sober October

3 Bar Hacks Episodes for Sober October

by David Klemt

We’re just two weeks away from Sober October so here are three Bar Hacks podcast episodes to get you ready for this important month.

Over the course of 100-plus episodes we’ve spoken with a handful of non-alcohol brands. These, along with other alcohol-free brands, should be on your radar.

In fact, they deserve spots on your backbar and placement on your menus. The latest estimate is that around 40 percent of Americans don’t consume alcohol. In Canada that number is roughly 33 percent.

However, those numbers don’t paint a complete picture. Over the past few years there has been increasing interest in “sober curiosity.” In this movement, people abstain from drinking alcohol from time to time rather than abstaining permanently.

Now, we tend to associate the month of January with sobriety, either permanent or temporary. Clearly, however, October is also a month where people choose to not imbibe.

The Sober Guest Experience

The following should go without saying but let’s cover it anyway. Some sober people do, in fact, spend time in bars and nightclubs.

Just as that should go without saying, so should this: Your sober guests deserve every bit as great an experience as guests who are drinking alcohol.

Moreover, sober guests deserve a guest experience free of discomfort or isolation. In short, you should seamlessly provide the same level of service at the bar to sober guests as those who enjoy alcohol.

No, it’s not enough to menu water, sugary sodas, lemonade, and tea. Sober guests should be comfortable coming to your bar. Like guests who consume alcohol, sober guests should be able to order a drink that doesn’t make them feel different or singled out.

So, put quality non-alcohol beers on your menu. Create a number of signature zero-proof cocktails. Serve both with the same attention to detail as presentation as their full-alcohol counterparts.

“I’m a professional, I want to create,” says Paul Mathew, founder of alcohol-free aperitif brand Everleaf and Bar Hacks guest. “I want to do something I’m proud of.”

Approach your alcohol-free program the same way as Mathew, a bartender and operator himself. Be professional, be creative, and be mindful of your sober guests’ experience.

Episode 28 with Tim Rita

Lyre’s Spirits crafts alcohol-free spirits that masterfully mimic their full-proof counterparts. Host David Klemt sits down with Lyre’s brand ambassador, bartender, and buddy Tim Rita to chat about the brand. In this episode you’ll learn about one of the fastest-growing brands in one of the fastest-growing beverage categories. For the alcohol-free Mai Tai mentioned on the podcast, click here.

Listen now.

Episode 31 with Ted Fleming

Ted Fleming, entrepreneur and CEO and founder of Partake Brewing, stops by the Bar Hacks podcast to talk with host David Klemt. The two discuss the founding of Partake Brewing and the importance and growth of the non-alcohol beer category. Also, how operators can succeed with non-alc, advice for entrepreneurs, and more. Visit the Partake Brewing website to learn more. Connect with Partake on Instagram, Twitter and Facebook.

Click here to listen.

Episode 81 with Paul Mathew

Paul Mathew, bartender, bar owner, and founder of Everleaf, sits down with Bar Hacks podcast co-host David Klemt. In this fun and informative episode, Paul shares his journey through bartending and bar ownership, and his entry into the drinks business. Non-alcoholic aperitif brand Everleaf is the culmination of Paul’s many years as a conservationist botanist, knowledge of plants, and nearly 30 years in the bar business.

The Everleaf portfolio consists of three unique expressions and a new RTD line. Shortly, Everleaf will begin distribution throughout the United States, and there are plans for Canada and Australia in the future. To learn more, vist the Everleaf website and follow Everleaf on Instagram and Facebook.

Listen to this episode here.

Image: Jia Jia Shum on Unsplash

June 29, 2022by David Klemt David Klemt No Comments

This Year’s Big Trend: Moderation

This Year’s Big Trend: Moderation

by David Klemt

Beverage-top media platform Ripples is reporting 2022’s big drink trend, focusing heavily on Gen Z imbibing habits.

The unique company produces devices that make it possible to print images atop drinks. With beverages of all types as their focus, the company is a great position to study drink trends.

Interestingly, Ripples focuses primarily on Gen Z drinking habits. However, the company’s data identifies an intriguing trend that transcends a single generation.

Let’s jump in.

Zero-proof Beverage Growth

At KRG Hospitality, we appreciate numbers; we’re a data-driven agency. Well, amongst all the stats Ripples latest findings reveal, two are massive.

First, in comparison to 2019, zero-alcohol products are up 166 percent. Second, the non-alcohol category is growing four times faster than its low-ABV counterpart.

Another impressive number? Non-alcohol spirits have grown by over 113 percent since 2020.

Per Ripples, Gen Z is driving the growth in the no-alcohol space. According to the beverage-tech company, this is likely due to social media presence.

I’m sure you read articles at least from time to time about Gen Z social media habits. Those written by their older counterparts make it seem like Gen Z doesn’t understand the risks of recording their every action.

Well, it’s highly likely that much of Gen Z would rather not have their drunken shenanigans on display on every social platform.

Values Drive Purchase Decisions

Beyond risk aversion, Ripples identifies values as key to Gen Z purchase and consumption decisions.

Generally speaking, members of Gen Z value transparency and authenticity. Brands that share those values are more likely to succeed with Gen Z.

And, again, speaking broadly, smaller, independent brands are often perceived as more transparent, authentic, and responsible. Large, mainstream brands are often seen as anything but green and responsible, never mind transparent or authentic.

Ripples posits that small indies aren’t encountering daunting barriers to entry. So, small-batch, craft non-alcohol brands are apt to find Gen Z support.

Craft sodas, RTDs offering health benefits, and zero-proof cocktails in cans or bottles are flooding the market. And they’re finding success. In fact, according to Ripples, RTD sales are up 400 percent on Drizly since 2019.

The Big Trend

If you’re a listener of our Bar Hacks podcast you’ve likely heard our episodes with David Allison. If you haven’t heard them, they’re episode 46 and episode 67.

As the founder of the Valuegraphics Project, Allison isn’t a fan of focusing on demographic stereotypes. Instead, he recommends a focus on values in conjunction with demographic and psychographic data.

In part, the Valuegraphics Project approach encourages business owners and operators to identify and target their customers’ values. This is, according to Allison, far more powerful than focusing on age and sex. As important is the fact that demographics tend to divide us, and stereotypes are dangerous.

So, he and the Valuegraphics Project team probably wouldn’t like all the focus on a single generation in this article and Ripples’ findings. Well, there’s some good news and it pertains to what’s likely this year’s biggest drinking trend.

Across all generations, one drinking trend is common: Moderation. An interest in no- and low-alcohol beverages is shared among all generations.

In fact, according to Ripples, 78 percent of consumers purchasing zero-proof drinks aren’t doing so exclusively. These consumers are still buying they’re favorite full-alcohol beverages.

Takeaway

Leveraging the moderation trend is fairly simple. The growth of all zero-proof categories means operators can succeed with alcohol-free spirits, beer, and wine.

RTD cocktails—full-, low- and zero-proof—are selling very well and work in restaurants and bars.

In short, ensure you have low-ABV and zero-alcohol versions of your full-ABV drinks on your menu. Include these in a dedicated non-alcohol section.

Operators don’t need to be afraid of guests drinking more moderately. The stereotype that guests who choose zero- or low-proof drinks are bad for the bottom line simply isn’t true.

Image: Chris Curry on Unsplash