US alcohol-free brands tap sports and entertainment

Sports and entertainment venues are increasingly exploring the sale of non-alcoholic (NA) beer, wine and spirits, as the sector continues to grow rapidly from a small base. 

What’s happening 

According to online drinks retailer Drizly, NA categories grew 29% in 2022, with 45% of participants in a survey earlier this year saying they were “extremely likely” or “likely” to take part in challenges like Sober October and Dry January.

Now Adweek reports ongoing discussions between brands in this segment and various sporting organizations, including the NBA, the NFL, the NHL and the MLB. Elsewhere, entertainment conglomerate AEG is reported to be in similar talks, while its Coachella festival this year deployed on-site alcohol-free bars for the first time.

Takeaways 

• The study from Drizly found that 23% of Gen Z and 24% of millennials reported drinking NA beer, wine and spirits; just 6% of Gen X and 1% of Boomers said the same. 
• Half of respondents had tried NA drinks because they liked it (39%), as part of a healthier lifestyle (31%), or being unable to drink alcohol for a specific reason (35%). 
• A recent Coefficient Capital study found that a fifth (22%) of Americans aged over 21 plan to drink less alcohol in the coming year for health reasons.
• It’s not just venues that are interested in NA brands. Athletic Brewing, a producer of alcohol-free products, has struck deals with airline JetBlue and streaming site Netflix.

Why non-alcoholic products matter

NA brands are becoming mainstream. “The driver here is societal change,” according to Andrew Katz, CMO at Athletic Brewing. “There’s a pronounced difference in today’s consumers, especially the younger ones, and they want these options. Venues that don’t have them will literally be leaving money on the table,” he told Adweek.”

Sourced from Adweek, Beverage Daily