Nonalcoholic | KRG Hospitality

Cocktails with edible flowers and dehydrated fruit for garnishes

September 26, 2024by David Klemt David Klemt No Comments

Are “Substituters” Leading NA Growth?

Are “Substituters” Leading NA Growth?

by David Klemt

No-ABV, low-ABV, or full strength?

Revelations shared by the IWSR recently suggest that the very generation driving non-alcohol growth may also be driving traditional beverage alcohol growth.

At least, according to the IWSR, a particular generation is over-indexing in the non-alc category and “full-strength” categories such as rum, whisky, Champagne, brandy and Cognac, and RTDs.

This is because Millennials—there it is, the big reveal—appear to be “substituters.” That is, as explained by the IWSR, much of this cohort consumes alcohol on some occasions, and non-alc beverages on others.

Now, before we proceed, let me get this out of the way: No generation is a monolith. While there’s value in understanding a given generation’s behavior, it’s important to understand that we can really only do so in broad terms.

That said, broadly speaking, members of the Millennial generation appear to be driving the growth of non-alc overall. In comparison to other generations, Millennials are consuming more non-alc spirits, more non-alc beer, and more non-alc wine.

Of course, there’s another caveat I must address: Less than half of Gen Z is of legal drinking age. So, when compared to that generation, the numbers are a bit skewed.

Generally speaking, non-alc is growing across the board in the US. What was once relegated to two or three low-alc beers and barely considered “mocktails” for many, many years is now a viable category. The category has gone from an afterthought to inspiring entire alcohol-free bar concepts, and it hasn’t taken long to achieve this growth.

Numbers

When I say Millennials are consuming more non-alc than other generations, what does that mean? Is the difference subtle, or is it eyebrow raising?

Per IWSR data, it’s the latter.

Last year, 45 percent of all non-alc beer drinkers in the US were Millennials. That number has jumped to 61 percent in 2024. Change focus to non-alc spirits and Millennials make up 66 percent of overall US consumers. That number is 59 percent when we look at who’s drinking non-alc wine.

For some context, just 22 percent of non-alc beer drinkers in the US are Gen X. Take a look at legal-drinking-age Gen Z and that number shrinks to seven percent. Again, though, most of Gen Z isn’t yet LDA.

So, back to substituters. Just under half of all Millennials, according to IWSR findings, vacillate between non-alc and full-ABV. It would appear, then, that Millennials are the most interested in exploring and experimenting with non-alc beverages.

For obvious reasons, this makes it clear that operators need to do more than just toss a couple of alcohol-free beers and sugary zero-proof cocktail concoctions on their menus.

Further, and I know I’m repeating myself, operators need to ensure they deliver the same level of service and guest experience for those abstaining from alcohol as those ordering traditional adult beverages. Failing to do so can alienate guests who choose to not consume alcohol but want to visit and socialize at a bar or restaurant. Why would they return if they receive what they perceive to be a lower level of service?

IWSR’s deep dive and data make it clear that operators need to give the non-alc element of their menu due consideration. The category is growing, interesting is increasing, and it’s smart business.

To review this data yourself, follow this link.

Image: Rachel Claire via Pexels

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February 16, 2024by David Klemt David Klemt No Comments

WSWA Access LIVE 2024: Product Roundup

A Few of Our Favorite WSWA Access LIVE Things

by David Klemt

We attended WSWA’s Access LIVE 2024 event in Las Vegas, Nevada, and found quite a few products we think will pique the interest of restaurant and bar operators.

Agave spirits, perhaps unsurprisingly, seemed to dominate the floor. In particular, tequila was very well represented.

However, we also found notable vodkas, gins, whiskeys, sake, liqueurs, zero-proof beverages, and more. Below, several portfolios and items that really stood out to us.

Cheers!

Portfolio

Deluxe Distillery

This distillery, operating out of Belgium, has some of the most striking packaging I’ve seen in a while. I’m confident in saying that guests scanning a back bar would find Deluxe Distillery‘s bottles intriguing.

More importantly, of course, the liquid is just as outstanding. Deluxe produces three gins under the Blind Tiger label: Piper Cubeba, Imperial Secrets, and barrel-aged Liquid Gold. Their vodka, Mary White, pays homage to a famous bootlegger. And then there’s Yusibi, a honey-based aperitif in a unique bottle.

However, it’s Deluxe’s Sūpāsawā that really grabbed my attention at Access LIVE. This product, available in 30 states in the US already, makes batching not just a breeze but a more budget-friendly proposition. Cost per bottle should run around $9. The prebatched cocktail Deluxe Distillery was serving at their booth took less than five minutes to make.

As far as entire portfolios, Deluxe stood out the most to me.

Agave

Inspiro Tequila

This is clean tequila brand needs to be on your radar. There are currently two Inspiro Tequila expressions, Luna Blanco and Rosa Reposado. Both premium tequilas can be enjoyed neat, and Rosa is rested in rosé wine barrels sourced from France.

Inspiro is woman-owned, confirmed additive-free, certified Kosher, gluten-free, sugar-free, and zero carb. Oh, and the bottles are eye-catching.

Sepulto Mezcal Artesanal

This artisanal mezcal launched at this year’s Access Live event. And yes, this is another case of the bottle catching my eye and drawing me in.

Sepulto is aged for one year in glass, underground. As a result of the distiller’s cooking process, the complex notes of espadín, sahuayo, and papalote agaves come through with each sip. This is definitely a mezcal you’ll want to add to your super-premium agave spirits. In fact, it will be right at home on your back bar and menu next to your Don Julio 1942.

Vodka

Tenjaku Japanese Vodka

Don’t let the clean label fool you: Tenjaku is as fun a brand as it is a premium vodka. Click here to check out their packaging, which drives home my point.

Speaking of premium quality, Tenjaku Vodka is made from Yamada Nishiki rice, which is also used to make some of the best sake in the world. Further, the liquid is filtered not just through birch charcoal but also bamboo charcoal. The result is a vodka that tastes fresh and is delicate on the palate.

Herbesco Pepper Vodka

Looking for a great vodka that can serve as a spicy base for Bloody Marys and other hot cocktails straight from the bottle?

Herbesco Pepper Vodka is made with jalapeño, japones, chile de árbol, and bell pepper. Along with heat, expect herbal, fruity, and even chocolatey notes.

Gin

The Illusionist Dry Gin

Those familiar with Empress are familiar with what gives the gin its hue and color-shifting capability: butterfly pea flower. That botanical is also present in The Illusionist, which comes in a stylish, black Art Nouveau bottle.

Certified organic, The Illusionist delivers more than just visual impact. On the nose, licorice and citrus. Those notes are also present on the palate, along with fruity and floral flavors.

Whiskey

Yame Whisky

This Japanese whisky was introduced to me by Wine of Japan, an incredible portfolio of ultra-premium sake, beer, and spirits. Anyone who wants to add the highest quality sake from Japan need look no further. (In fact, I’ve been looking for a specific sake for over a decade. The VP or Wine of Japan knew exactly what I was talking about and had a sample at the booth. Amazing.)

Two expressions were available to try at Access LIVE, the 10 Year and 15 Year. The 10 Year features a 100-percent barley mashbill and is very easy to drink, delivering notes of vanilla and citrus. Think an easy-sipping bourbon. I found the 15 Year to a bit more complex, delivering dried fruit and grain on the palate. However, I had also sampled quite a few sake before trying this whisky.

In other words, you’re going to have to reach out to Wine of Japan and get tasted on both Yame expressions.

Tenjaku Whisky

There are two Tenjaku Whisky expressions currently: Blended and Pure Malt.

The former is sweet on the nose, with a touch of smoke. On the palate, Tenjaku Blended delivers grain, dried fruit, and a bit of spice.

The latter, Pure Malt, has nutty aroma with herbal notes. Expect wood and vanilla on the palate.

Niche

Wheyward Spirit

I could include woman-owned, operated, and distilled Wheyward in the whiskey category, but it’s too unique for that. The two available expressions are produced by upcycling whey.

Wheyward Spirit, the original expression, can stand in for vodka, gin, rum, sake, and even blanco tequila. The brand itself explains this innovative spirit quite succinctly: “Wheyward Spirit is one of a kind and was designed to take the best elements of vodka, sake, gin, and rum to be both a versatile and sippable clear spirit.”

There’s also Wheyward Spirit Wheyskey. Now that you’re familiar with the original, you can probably guess that this is a whey-based alternative to whiskey. This expression is barrel-aged Wheyward Spirit, and, like the original, is additive-, grain-, gluten-, and lactose-free. When I tasted Wheyskey, it most closely resembled a rye whiskey to me.

Alcohol-free

De Soi

“Savor the flavor, lose the booze, put the ‘fun’ in ‘functionality,’ and embrace the pleasure of restraint,” says non-alcohol brand De Soi.

This range of zero-proof apéritifs is loaded with interesting flavors, such as sparkling Très Rosé, citrusy and herbaceous Golden Hour, and jammy and bitter Champignon Dreams.

Operators looking to add sophisticated and unique non-alcohol beverage options should definitely look into De Soi.

Sparkling Wine

Rozoy Picot

If the production of this French sparkling wine didn’t involve a unique twist, I’m told Rozoy Picot would legally be Champagne.

However, these sparkling wines are blended with terpenes, the aromatic elements of cannabis. (Remember, terpenes don’t contain psychoactive elements, so this product doesn’t get you high.)

There’s a white varietal, Rozoy Picot OG Kush, and a red, Punch Rosé. I can only say that these must be smelled and tasted to be understood fully. Additionally, I can see these performing well at nightclubs as a unique bottle service option.

Image provided by author.

Moth Margarita canned cocktails stacked on a black, wood table

January 8, 2024by David Klemt David Klemt No Comments

Can It? NA Canned Cocktail Performance

Can It? Zero-proof Canned Cocktail Performance

by David Klemt

Veylinx, a behavioral research platform trusted by some of the world’s biggest brands, has turned their attention alcohol-free canned cocktails for a recent study.

They’ve researched demand for non-alcohol before. In fact, you can find our analysis of their 2022 study here. We’ve also covered their look into the effectiveness of Super Bowl ads.

For their latest study, consumer demand for non-alcoholic canned cocktails, Veylinx showed how seriously they take research and methodology.

Conducted between November and December of 2023, the platform created a fictional canned cocktail brand, Elixir. This was done to account for brand bias.

Further, the “brand” produced two benchmark products—alcohol and alcohol-free—and four variations. These non-alcoholic variants offered four different benefits: CBD, mood boost, zero-calorie, and natural detox.

All participants were 21 or older:

21 to 25
26 to 35
36 to 45
46 to 55
56 to 65
Older than 65

Half of the study identified as male, and the other half as female. Most, 73 percent, were alcohol drinkers, while 27 percent were not.

For the study, Veylinx had each participant, 410 in total, bid on the six Elixir products with their own money. The bidding took place in randomized, sequential auction.

After the auction, the participants completed a questionnaire. The following is a sample question:

“What would be the main reasons for you NOT to buy non-alcoholic beverages? Please select all that apply.”

Possible answers to that question were: Limited availability, Limited variety, Flavor, and/or Other.

With methodology explained, let’s check out the results.

Canned Cocktails by the Numbers

While demand for non-alcohol canned cocktails appears to be growing, their counterparts remain most popular.

Per Veylinx, demand for Elixir’s alcoholic canned cocktails surged by 20 percent in their study. In comparison, average demand for the fictional brand’s non-alcoholic benchmark and variants canned cocktails increased by four percent.

Further, the full-proof and zero-proof CBD products garnered the most interest. The alcoholic version saw an uplift of seven percent, and CBD saw a three-percent uplift. Consumers showed the least interest in non-alcohol, zero-calorie variants.

Comparing 2022 to 2023, demand for “standard” alcohol-free canned cocktails is up 14 percent. This is followed by the CBD variant with four-percent growth in consumer demand. Next, non-alcoholic canned cocktails with a “mood-boosting” benefit, which grew by two percent. Natural detox saw an increase in demand of just one percent. And consumer demand for zero-calorie, zero-alcohol canned cocktails fell by one percent.

So, today’s consumer, at least according to research conducted by Veylinx, is most interested in alcoholic canned cocktails. Still, there’s growing interest in alcohol-free canned cocktails, something for operators to keep in mind.

Changes in Behavior

Speaking of interest in zero-proof, Veylinx uncovered some other interesting information.

In 2022, around 56 percent of consumers expressed interest reducing their alcohol consumption. That number fell by 18 percent to 38 percent in 2023. That’s still a significant percentage of consumers looking to make a big change in their lives.

Forty-one percent of consumers aged 21 to 35 are trying to reduce their alcohol intake. That number drops slightly to 36 percent for those aged 36 and older.

Veylinx also found that half of consumers would drink less alcohol if one simple change took place. All it would take is better-quality, non-alcohol versions at better prices to hit the market.

In fact, per Veylinx, consumers cited flavor and price as the two top influences on their decision to consume zero-proof canned cocktails. So far, energy drinks are the go-to for most consumers trying to drink less alcohol.

If they’re smart, brands with an interest in producing successful non-alcohol canned cocktails will work to improve costs, flavors, and health benefits, if this Veylinx study is taken to heart.

To review this study in its entirety yourself, click here. The press release for the study is below.

The Year of Canned Cocktails: Consumer Demand Increases for Non-Alcholic and Alcoholic Variations

NEW YORK, December 20, 2023 — According to a new, year-over-year study from behavioral research platform Veylinx, consumer demand is increasing for both non-alcoholic and alcoholic canned cocktails. Using Veylinx’s proprietary methodology—which measures actual demand rather than intent— the study found that demand for non-alcoholic canned cocktails grew by 4%, while demand for alcoholic canned cocktails surged by 20% over last year.

While interest remains strong for non-alcoholic alternatives, the percentage of people trying to reduce their alcohol consumption fell by 18%, to 38%. This decline from 2022 could lead to lower participation in abstinence events like Dry January.

Half of respondents claimed they would drink less alcohol if better non-alcoholic alternatives were available, showing opportunity for yet more innovation in the beverage sector. Those looking to reduce their alcohol consumption are 50% more interested in non-alcoholic cocktails.

In 2022, “Never tried before,” was the top reason consumers gave for not buying canned non-alcoholic beverages. That is no longer the case in 2023, suggesting that non-alcoholic canned cocktails increased their market penetration over the last year. Flavor and price are now the primary reasons people don’t buy non-alcoholic cocktails.

“Even with fewer people trying to reduce their alcohol consumption, demand for non-alcoholic canned cocktails continues to grow,” said Veylinx founder and CEO Anouar El Haji. “Drinkers and non-drinkers alike are receptive to ready-to-drink alternatives that are better for their health and wallets.”

The study also measured demand for non-alcoholic cocktails enhanced with functional benefits like mood boosters, detoxifiers and CBD. Demand for the standard non-alcoholic version increased 14% from last year, while the enhanced variations increased only slightly and the zero-calorie version fell by 1%. This suggests consumers might be losing interest in what they perceive as marketing gimmicks. The CBD version saw a 4% increase in demand, remaining the most popular non-alcoholic variation.

Additional key findings:

The optimal price for non-alcoholic canned cocktails that maximizes revenue for brands is $12 for a four-pack
The brands consumers have tried the most are: 1) Mocktail Club, 2) Wild Tonic, 3) Spiritless, 4) DRY, and 5) Hella Cocktail Co
44% of people expressed support for an additional 10% tax on alcohol as a public health measure for reducing consumption
For those aiming to drink less alcohol by replacing it with other beverages, energy drinks experienced the greatest increase in popularity
Physical Health and Cost are the two most popular reasons for reducing alcohol consumption
Grocery stores are the most popular place to buy non-alcoholic canned cocktails
Flavor options have the most influence on which brand consumers choose
A lower price would convince 20% of consumers to buy more non-alcoholic cocktails

To download more detailed results from the 2023 Non-Alcoholic Canned Cocktail study or for more information about Veylinx, visit https://veylinx.com/canned-cocktails.

About the research

Unlike typical surveys where consumers are simply asked about their preferences, Veylinx uses behavioral research to reveal how much consumers will pay for a product through a real bidding process. Consumers reveal their true willingness to pay by placing sealed bids on products and then answering follow-up questions about their reasons to buy or not to buy. The research was conducted in November and December 2023 among U.S. consumers ages 21 and over. It is a follow-up to a similar study Veylinx conducted in October 2022. The 2022 study can be found at https://info.veylinx.com/non-alcoholic-cocktails

Image: Ambitious Studio* – Rick Barrett on Unsplash

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

January 5, 2022by David Klemt David Klemt No Comments

5 Books to Read this Month: January ’22

5 Books to Read this Month: January ’22

by David Klemt

This month’s fun and informative book selections will help you develop next-level culinary, beverage and leadership skills as we kick off 2022.

To review December 2021’s book recommendations, click here.

Let’s jump in!

Try Dry: The Official Guide to a Month Off Booze

For those who want to learn more about Dry January, Try Dry is an insightful resource. Of course, this book is also informative beyond the first month of the year. As living alcohol-free movement becomes more mainstream, it’s important for operators to understand the movement. Whether permanent or temporary, there are myriad reasons some guests decide against drinking alcohol.

Of Peats and Putts: A Whisky and Golf Tour of Scotland

During the pandemic, interest in golf skyrocketed. In part, this has led to increased interest in golf simulators, driving ranges, and nine-hole rounds of golf rather than full, 18-hole outings. Of Peats and Putts tells the story of golf and whisky in Scotland. A compelling read for operators looking to bring golf into their businesses.

The Way of the Cocktail: Japanese Traditions, Techniques, and Recipes

Not even two months on the market and already causing quite the buzz! The Way of the Cocktail comes from Julia Momosé, one of the minds behind Chicago cocktail destination Kumiko. From classics to new riffs, the recipes in this book are based on 24 micro-seasons.

Bourbon [Boxed Book & Ephemera Set]: The Story of Kentucky Whiskey

Clay Risen is considered an authority on spirits. In particular, he’s lauded as an expert on whiskey. Bourbon lovers will appreciate the Bourbon: The Story of Kentucky Whiskey box set for what it is: a definitive history of America’s native spirit. Along with profiles of Kentucky distillers, Risen has included interviews and photographs to tell the story of bourbon.

Amaro: The Spirited World of Bittersweet, Herbal Liqueurs, with Cocktails, Recipes, and Formulas

There are many reasons to love amaro. Bitter and bittersweet notes, complex flavor profiles, and their utility when it comes to crafting low-ABV cocktails are among those reasons. Amaro by Brad Thomas Parsons explores the rich history of amaro and includes over 100 recipes.

Image: Mikołaj on Unsplash