Diageo has acquired US-based non-alcoholic spirits brand Ritual Zero Proof as part of its strategy to capitalise on growing demand for alcohol alternatives.
Launched in Chicago in 2019, Ritual has quickly established itself as the leading non-alcoholic spirit brand in the country. Its offering includes substitutes for whiskey, tequila, gin, rum, as well as an aperitif to recreate classic cocktails without the alcohol. The drinks are low in sugar, made with natural flavours and gluten-free.
Ritual’s founders – David Crooch, Marcus Sakey and GG Sakey – developed their product line to provide consumers with flavourful alternatives to traditional spirits. Diageo noted that this approach has resonated with a diverse consumer base, as evidenced by the fact that 94% of non-alcoholic beverage buyers also purchase alcoholic options, highlighting the category’s incremental value to the broader beverage alcohol market.
Sally Grimes, CEO of Diageo North America, said: “Ritual Zero Proof is the number one brand in the fastest growing adult beverage category, and meets growing consumer demand for a flavorful and sophisticated, yet accessible spirits alternative. We are delighted to welcome it into our broader portfolio, where it will beautifully complement both our non-alc offerings, as well as those with alcohol, and serve to present consumers with even more choice and variety.”
Crooch added: “From day one, we’ve set out to create an iconic brand in the drinks industry, specifically designed to meet the needs of the modern consumer. Ritual brings this mission to life, and Diageo understood that from the get-go. With the continued and widespread growth of the category, there is significant market presence and consumer demand. Ritual has the ability to meet consumer desires and tastes, seamlessly offering traditional spirit alternatives ounce-for-ounce.”
NAM Implications:
- This acquisition takes care of the non-alcoholic groundwork…
- …and presents Diageo with the benefit of accessing the full potential of the Ritual brand…
- …via the Diageo footprint.
- Time for a little reassessment by Diageo’s rivals.
