Not Just for January: How Alcohol-Free Spirits Brands Can Generate Loyalty Year-Round
The time is now for non-alcoholic spirits brands. More Americans are alcohol-free than at any point in the last two decades (40%), with nearly 4 in 10 U.S. consumers saying they closely or occasionally follow a “sober curious” lifestyle. Global sales of no and low alcohol options exceeded $11 Billion in 2022, giants like PepsiCo are marketing ready-to-drink mocktails, and celebrities like Blake Lively and Katy Perry have developed their own lines of zero-proof drinks. It’s official - the Dry January challenge is no longer isolated to the beginning of the year. Though the market is quickly crowding, there is plenty of room for non-alcoholic spirits brands to build their own community of loyal and engaged customers.
Who Buys Non-Alcoholic Spirits and Why?
Alcohol-free beer, wine and spirits are often associated with those overcoming alcohol addiction, or women who are pregnant (who ARE an important audience segment - just see our co-founder’s round-up her go-to’s during pregnancy!). However, around three-quarters of Gen Z (71%) and Millennials (73%) occasionally follow or are interested in trying a sober-curious lifestyle. These younger consumers tend to prioritize both their physical and mental health, and are acutely aware of the negative impacts of drinking alcohol.
Challenges Non-Alcoholic Spirits Brands Face
Not every non-alcoholic spirit brand has a Blake Lively or a Katy Perry up their sleeve to help generate brand awareness, and there are plenty of barriers to a brand looking to grow in this space. The association between alcohol and having fun, relaxing, connecting at the dinner table - you name it - is strong, and almost half of Americans think the idea of giving up alcohol is too difficult (47%). Additionally, consumers think non-alcoholic spirits should generally be less expensive than drinks with alcohol (73%), but for emerging N/A brands, premium pricing is common. Even for consumers who are willing to spend, availability of non-alcoholic spirits brands is a challenge. To succeed in this space, N/A brands need to have a data-driven, audience-focused marketing strategy AND excel in their digital channel management - especially with email, SMS and social media channels.
Marketing Tips for Non-Alcoholic Spirits Brands
Go Bold in Your Branding. It’s not hyperbolic to state that your product exists to improve people’s lives, that you’re leading the charge for a happier, healthier next generation (aftercall, the World Health Organization has called alcohol a Group 1 carcinogen, the highest risk group, alongside asbestos, radiation and tobacco.) Alternatively, focus on capturing a fun, playful vibe with your branding. If the Barbie Movie taught us anything, it’s that consumers are craving visuals that inspire playfulness and fun. Think bold colors, maximal design, AI generated imagery, and a nod to nostalgia. Grüvi Spirit Free Beverages takes a stand against the connection between socializing and alcohol, carving out a true mission rather than just a selection of products.
Recess makes non-alcoholic functional beverages and is a Gen Z darling. With dreamy and playful branding, they check every box for fun visuals. And it’s not just their imagery that stands out, they effectively utilize consumer insights around burnout to position their brand.
Gamify with rewards. Iterate on the challenge aspect that drove so much participation in Dry January to begin with. A strong loyalty program can provide you with fun ways you can support and reward your customers each month. Give these VIPs incentives to abstain from alcohol, to invent a new mocktail each week, or recruit sober curious friends into your world.
The popular non-alcoholic beer brand Athletic Brewing excels at giving their customers gamified reasons to be loyal customers, using everything from a “track your dry” tool to vacation giveaways. They clearly understand how to leverage the Dry January Movement to develop year-round customers.
Ritual Zero-Proof Spirits is another brand doing things right in this area. They offer shoppers so many ways to earn loyalty points, leading to significant discounts for repeat customers.
Lean into at-home occasions. Create marketing content that shows the consumer how to enjoy your products in a fun setting at home. With consumers looking to save money, you can teach them how to create a setting at home that replaces the traditional bar or restaurant setting. Pinterest is an extraordinarily powerful marketing platform for this - so don’t forget to include it in your strategy!
Seedlip Non-Alcoholic Spirits provides tons of in-home inspiration with gorgeous imagery of entertaining with their products, blog content on how to batch cocktails at home, and even created a recipe e-book for margaritas at home.
Personalized Messaging & Product Recommendations: Attitudes towards N/A spirits vs. alcohol have a subtle generational split, and messaging that targets different age groups is critical. Millennials generally have a more favorable view of alcohol than Gen Z - Mintel data reveals that 51% of Millennials say that giving up alcohol entirely is too difficult and 69% agree that alcohol enhances special occasions. For campaigns targeting this cohort, make sure you’re acknowledging this and offer product recommendations based on traditional alcohol categories they know (i.e. If your go-to cocktail is a gin & tonic, try this). Additionally, Gen Z are also the most receptive to functional adult non-alcoholic beverage options that promote relaxation – develop a product that meets this interest, then target it to your youngest consumers.
Recess truly understands what their unique customer is struggling with, and they put it front and center in their marketing. Ritual also does an excellent job of appealing to the audience segment that loves alcohol, doesn't want to abstain entirely, but wants a truly comparable product when they do want to avoid alcohol. They provide easy-entry for sober-curious consumers by sharing N/A cocktail recipes based on typical cocktail flavors we’re used to.
Address taste & emphasize craft. Your marketing campaigns should be addressing two of the biggest challenges N/A brands face: taste and price hesitancy. By leaning into attributes like the quality of ingredients, minimal processing, and the craft nature of your product you can convince shoppers of the value your product provides. Additionally, highlighting more traditional flavors can bring new consumers into the brand.
Parch Non-Alcoholic Agave Spirits & Cocktails looks and feels just like your favorite mezcal brand, and goes to great lengths to tout their similar production process.
Provide a seamless e-commerce experience. Alcohol e-commerce sales are projected to increase 66% according to IWSR Drinks Market Analysis – signaling consumers’ growing comfort with purchasing spirits online. However, there are still many regulations that make online alcohol sales a friction-filled experience for consumers, with strict regulations on DTC shipping. If marketed well, an N/A spirits e-commerce site can be a powerful channel for growth.
Develop partnerships with brands and creators who share your target audience. If your unique brand of N/A spirits was developed for young, high-income wellness warriors, partner with a digital marketing agency who can help you uncover deeper insights to identify the right partners to grow your audience.
Recess partnered with cookware company Great Jones, another beloved Millennial and Gen Z brand (and 624 Agency client!) for a collab post on Instagram featuring a cross-product giveaway, effectively reaching the other brands’ audience in the process.
If you’re an emerging or fast-growing band in the non-alcoholic beverage space, we’d love to help you reach new levels of success. At 624 Agency, we focus on driving sustainable success in the world of e-commerce through helping our clients build a community of loyal and engaged customers. We can help you develop a TikTok or Pinterest strategy, uncover new audience segments, increase your email revenue and so much more. Learn more about our focus on loyalty, and give us a call!