Diageo North America has acquired non-alcoholic spirits brand Ritual Zero Proof to capitalise on the growing demand for alcohol alternatives.
Rapid͏͏ Growth͏͏ of͏͏ Ritual Zero Proof:
Since͏͏ its͏͏ launch͏͏ in͏͏ 2019,͏͏ Ritual͏͏ has͏͏ rapidly͏͏ become͏͏ the͏͏ leading͏͏ non-alcoholic͏͏ spirit͏͏ brand͏͏ in͏͏ the͏͏ US,͏͏ highlighting͏͏ a͏͏ notable͏͏ shift͏͏ in͏͏ consumer͏͏ preferences͏͏ towards͏͏ healthier͏͏ beverage͏͏ choices.
A͏͏ Diverse͏͏ Range͏͏ of͏͏ Non-Alcoholic Options:
The͏͏ brand͏͏ offers͏͏ substitutes͏͏ for͏͏ whiskey,͏͏ tequila,͏͏ gin,͏͏ and͏͏ rum,͏͏ along͏͏ with͏͏ an͏͏ aperitif͏͏ alternative,͏͏ enabling͏͏ consumers͏͏ to͏͏ recreate͏͏ classic͏͏ cocktails͏͏ without͏͏ alcohol.͏͏ These͏͏ drinks͏͏ are͏͏ low͏͏ in͏͏ sugar,͏͏ crafted͏͏ with͏͏ natural͏͏ flavours,͏͏ and͏͏ gluten-free.
Ritual’s͏͏ founders—David͏͏ Crooch,͏͏ Marcus͏͏ Sakey,͏͏ and͏͏ GG͏͏ Sakey—created͏͏ their͏͏ product͏͏ line͏͏ to͏͏ offer͏͏ consumers͏͏ flavourful͏͏ alternatives͏͏ to͏͏ traditional͏͏ spirits.
Ritual’s͏͏ approach͏͏ has͏͏ struck͏͏ a͏͏ chord͏͏ with͏͏ a͏͏ diverse͏͏ consumer͏͏ base,͏͏ evidenced͏͏ by͏͏ the͏͏ fact͏͏ that͏͏ 94%͏͏ of͏͏ non-alcoholic͏͏ beverage͏͏ buyers͏͏ also͏͏ purchase͏͏ alcoholic͏͏ options.͏͏ This͏͏ underscores͏͏ the͏͏ category’s͏͏ incremental͏͏ value͏͏ within͏͏ the͏͏ broader͏͏ beverage͏͏ alcohol͏͏ market.
Continue͏͏ Exploring:͏͏ Diageo launches͏͏ single͏͏ malt͏͏ Crown͏͏ Royal͏͏ Canadian͏͏ whisky
Supporting͏͏ Diageo’s͏͏ Growth͏͏ Ambition͏͏ Strategy:
The͏͏ acquisition͏͏ supports͏͏ Diageo’s͏͏ broader͏͏ ‘Growth͏͏ Ambition’͏͏ strategy,͏͏ which͏͏ focuses͏͏ on͏͏ fostering͏͏ sustainable͏͏ growth͏͏ by͏͏ investing͏͏ in͏͏ high-potential͏͏ brands͏͏ within͏͏ emerging͏͏ categories.
The͏͏ non-alcoholic͏͏ beverage͏͏ segment͏͏ has͏͏ experienced͏͏ a͏͏ 31%͏͏ CAGR͏͏ in͏͏ retail͏͏ sales͏͏ over͏͏ the͏͏ past͏͏ five͏͏ years,͏͏ with͏͏ non-alcoholic͏͏ spirits͏͏ emerging͏͏ as͏͏ the͏͏ fastest-growing͏͏ category͏͏ in͏͏ adult͏͏ beverages.
Sally͏͏ Grimes,͏͏ CEO͏͏ of͏͏ Diageo͏͏ North͏͏ America,͏͏ stated:͏͏ “We͏͏ are͏͏ thrilled͏͏ to͏͏ welcome͏͏ it͏͏ into͏͏ our͏͏ broader͏͏ portfolio,͏͏ where͏͏ it͏͏ will͏͏ seamlessly͏͏ complement͏͏ both͏͏ our͏͏ non-alcoholic͏͏ and͏͏ alcoholic͏͏ offerings,͏͏ providing͏͏ consumers͏͏ with͏͏ even͏͏ more͏͏ choice͏͏ and͏͏ variety.”
This͏͏ acquisition͏͏ not͏͏ only͏͏ strengthens͏͏ Diageo’s͏͏ non-alcoholic͏͏ portfolio͏͏ but͏͏ also͏͏ positions͏͏ the͏͏ company͏͏ to͏͏ better͏͏ cater͏͏ to͏͏ a͏͏ market͏͏ that͏͏ is͏͏ increasingly͏͏ prioritising͏͏ health-conscious͏͏ choices.
Diageo͏͏ has͏͏ a͏͏ significant͏͏ presence͏͏ in͏͏ the͏͏ non-alcoholic͏͏ segment,͏͏ already͏͏ holding͏͏ leading͏͏ market͏͏ shares͏͏ in͏͏ key͏͏ markets͏͏ worldwide.
The͏͏ integration͏͏ of͏͏ Ritual͏͏ into͏͏ Diageo’s͏͏ portfolio͏͏ is͏͏ anticipated͏͏ to͏͏ capitalise͏͏ on͏͏ these͏͏ strengths,͏͏ further͏͏ reinforcing͏͏ the͏͏ company’s͏͏ status͏͏ as͏͏ the͏͏ leading͏͏ player͏͏ in͏͏ non-alcoholic͏͏ spirits͏͏ globally.
Since͏͏ its͏͏ initial͏͏ investment͏͏ in͏͏ Ritual͏͏ through͏͏ Distill͏͏ Ventures͏͏ in͏͏ 2020,͏͏ Diageo͏͏ has͏͏ seen͏͏ the͏͏ potential͏͏ of͏͏ the͏͏ non-alcoholic͏͏ landscape.͏͏ Distill͏͏ Ventures,͏͏ an͏͏ accelerator͏͏ for͏͏ founder-led͏͏ drinks͏͏ brands,͏͏ has͏͏ been͏͏ key͏͏ in͏͏ supporting͏͏ Ritual’s͏͏ growth,͏͏ allowing͏͏ it͏͏ to͏͏ establish͏͏ itself͏͏ as͏͏ a͏͏ market͏͏ leader.
As͏͏ part͏͏ of͏͏ the͏͏ acquisition,͏͏ David͏͏ Crooch͏͏ will͏͏ take͏͏ on͏͏ the͏͏ role͏͏ of͏͏ general͏͏ manager͏͏ for͏͏ Diageo’s͏͏ Non-Alcohol͏͏ business͏͏ unit,͏͏ responsible͏͏ for͏͏ driving͏͏ the͏͏ expansion͏͏ of͏͏ non-alcoholic͏͏ offerings͏͏ throughout͏͏ North͏͏ America.
David͏͏ stated:͏͏ “From͏͏ the͏͏ very͏͏ beginning,͏͏ we͏͏ aimed͏͏ to͏͏ create͏͏ an͏͏ iconic͏͏ brand͏͏ in͏͏ the͏͏ drinks͏͏ industry,͏͏ specifically͏͏ tailored͏͏ to͏͏ meet͏͏ the͏͏ needs͏͏ of͏͏ the͏͏ modern͏͏ consumer.͏͏ Ritual͏͏ embodies͏͏ this͏͏ mission,͏͏ and͏͏ Diageo͏͏ recognised͏͏ that͏͏ from͏͏ the͏͏ start.”
He͏͏ continued:͏͏ “With͏͏ the͏͏ ongoing͏͏ and͏͏ widespread͏͏ growth͏͏ of͏͏ the͏͏ category,͏͏ there͏͏ is͏͏ substantial͏͏ market͏͏ presence͏͏ and͏͏ consumer͏͏ demand.͏͏ Ritual͏͏ has͏͏ the͏͏ capacity͏͏ to͏͏ satisfy͏͏ consumer͏͏ preferences͏͏ and͏͏ tastes,͏͏ providing͏͏ traditional͏͏ spirit͏͏ alternatives͏͏ ounce-for-ounce.”
