Several traditional wine merchants are expanding their non-alcoholic offering to keep up with evolving consumer preferences, as the shift towards mindful drinking and health-conscious choices continues.
But what’s really driving this change? Is it a passing trend, or are we witnessing a fundamental shift in the drinks industry? Should retailers be dedicating more shelf space to non-alcoholic options?
Key factors fuelling growth include the widely-reported decline in alcohol consumption, particularly among younger consumers, as well as the rise in expectations for quality alternatives.
The hospitality sector has played a big role in driving retail demand. Take Soho House, for example, mindful drinking options now make up 30% of its drinks menu. This growing visibility is influencing consumer expectations and shopping habits.
RETAILER RESPONSE
From independent bottle shops to department stores and online platforms, many forward-thinking retailers have already embraced the non-alcoholic movement. Jeroboams and Amathus have built strong NA selections, for example, finding that the same customers who buy premium wines and spirits are also interested in high-quality non-alcoholic options.
In December 2024, Majestic partnered with Club Soda, rolling out nine products across 212 stores and online, following a 600% sales spike in no- and low-alcohol products since March 2022.
Department stores such as Harvey Nichols and Fenwick (through its Fuego restaurants) have incorporated NA spirits into both retail and hospitality, allowing customers to sample a drink before purchasing a bottle.
Online supermarkets are stepping up, too, with Ocado leading the charge.
CHALLENGES AND CONSIDERATIONS
Educating customers about the depth and complexity of non-alcoholic spirits is key to driving sales. Retailers also need to strike the right balance between established brands and innovative newcomers to keep their offerings fresh and appealing.
Perhaps the biggest hurdle is overcoming the perception of “paying for less”. Unlike beer and wine, where NA options are direct replacements, spirits require more storytelling, highlighting craftsmanship, ingredients, and experience. Tasting events, in-store activations, and collaborations will be essential in helping consumers understand the value of premium non-alcoholic spirits.
