News ReleaseInnovation Beverage Group Offers Zero-Alcohol Range As Non-Alcoholic Beverages Market Grows
Benzinga
By Kyle Anthony, Benzinga Society’s tastes and preferences are constantly changing; as such, the most forward-thinking companies strive to anticipate where new preferences may manifest and to be present for interested consumers. In the beverage industry, non-alcoholic beers and wines are gaining prominence amongst consumers, opening the pathway for beverage producers to offer new and refreshing products akin to alcoholic beverages, but without their undesirable effects or long-term health consequences. Striving to become a key player in the non-alcoholic beverage market, Innovation Beverage Group (NASDAQ: IBG) stands out as a developer, manufacturer and marketer of a diverse beverage portfolio. With 60 formulations across 13 alcoholic and non-alcoholic brands, the company is striving to be at the forefront of catering to evolving consumer preferences. The Growth Of The Non-Alcoholic Beverage Market According to research by Introspective Market Research (IMR), the global non-alcoholic beer and wine market was estimated at $22.65 billion in 2022 and is projected to reach $37.21 billion by 2030, growing at a CAGR of 6.4%. While once considered a niche market, non-alcoholic beers and wines have become a material opportunity for beverage producers, but why is the question? The answer is varied. While changes in societal preference and attitudes toward alcohol consumption is an overarching rationale, there are other reasons many people are making this change. As detailed in IMR’s report, the rising health consciousness among consumers is arguably the primary reason behind the growth of the non-alcohol beer and wine market. With growing awareness about the health implications of excessive alcohol consumption and lifestyle movements such as Sober Curious, individuals, particularly millennials, are driving demand for this beverage category. The International Wine and Spirits Record (IWSR) recently reported that millennials are willing to try new products across the no-alcohol spectrum. Furthermore, almost half of millennial no-alcohol consumers are classed as ‘substituters’ – in other words, those who drink no-alcohol products on some occasions, and full-strength on others – and they are also disproportionately frequent no-alcohol consumers, accounting for 51% of frequent no-alcohol consumers in the US, and 47% of consistent consumers. Technology and product innovation are also driving the growth of the non-alcoholic beverage category. As outlined in the IMR report, leading companies are making the necessary investments to compete in this category, using industry-leading processes, such as vacuum distillation and fermentation control, to create non-alcoholic beers and wines that closely replicate the flavor profiles of traditional alcoholic beverages. This technological advancement has played a crucial role in enhancing product quality and gaining consumer acceptance, propelling the market forward. Another important consideration aiding the growth of the non-alcoholic beverage category is regulation and accessibility. As highlighted in the IMR report, in regions such as Europe, where non-alcoholic beverages are not subject to excise duty, the cost advantage can boost market growth by lowering consumer prices, enhancing affordability, and stimulating demand. Furthermore, being able to brand a product as “0% alcohol-free” offers a potential competitive advantage, enabling producers to position them as healthier options. The alcohol-free designation allows food delivery platforms, such as Uber (NYSE:UBER) or DoorDash (NASDAQ:DASH), to facilitate the sale and distribution of these products to consumers easily, as there is no requirement to show any identification to verify a purchaser's age for such products. Attaining Success In The Non-Alcoholic Beverage Category The non-alcoholic beverage category presents an opportunity for beverage producers to think differently and understand their consumers. Earlier this year, the Boston Consulting Group published a brief on the growth of the non-alcoholic beverage category, highlighting the factors that will aid beverage producers in gaining success. Top of the list was great products. In this increasingly competitive category, making a beverage with a distinct flavor profile and broad appeal is important. As such, beverage producers that invest in research and development have the potential to differentiate themselves. The second factor is brand perception. While it would be easy for established players to leverage their existing brand by making an alcohol-free version of their regular product as a means of entering the category; that may not have any staying power in the long run. As such, beverage producers need to be intentional and thoughtful as they enter the category, creating distinct brands. Finally, customer knowledge is also key. Societal preferences are ever-changing, as such, being able to identify these trends and align one’s product messaging and marketing to them is truly powerful. With individuals becoming more health-conscious or being more mindful and aware of their consumption habits, beverage producers are able to market their non-alcoholic beverages to individuals on the basis of their belief and lifestyle. IBG’s Drummberboy; A Non-Alcoholic Spirit For Those That Want To Forge Their Own Path Discussions about the non-alcoholic beverage category lean towards beer and wine, as such, IBG has attempted to differentiate themselves from the field with their Drummerboy non-alcoholic spirits, which include whiskey, tequila, gin, vermouth and aperitif. Four of out the five drinks have been awarded by the Melbourne International Spirits Competition (2022) and International Wine & Spirits Competition (2023). From a brand perception standpoint, Drummberboy actively leans into its non-alcoholic nature with the tagline “Zero Alcohol, Zero Cares Given.” Finally, the IBG has found ways to promote and align the product with consumers digitally, by way of having mocktail recipe guides on their website and tutorials on YouTube. A Distinctive Company With An Eye On The Future IBG wants to disrupt the beverage landscape by making quality an attribute across its versatile product offerings. Drummerboy is an example of the firm’s ability to do so, particularly in the fast-growing non-alcoholic beverage category. As IBG makes its way into the U.S. market, leveraging its potential competitive advantages of proprietary technology and vertical integration, the firm hopes to continue to bring to market more distinct and premium beverage offerings for consumers to enjoy. For more information on IBG's recent corporate activities and developments, read about their recent executive appointment and partnership with Sysco (NYSE: SYY), a leader in foodservice distribution. Featured photo by Aleksandar Andreev on Unsplash. Benzinga is a leading financial media and data provider, known for delivering accurate, timely, and actionable financial information to empower investors and traders. This post contains sponsored content. This content is for informational purposes only and is not intended to be investing advice. Contact Details Benzinga +1 877-440-9464 info@benzinga.com Company Website http://www.benzinga.com
November 08, 2024 08:45 AM Eastern Standard Time
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